Rural Loan Policy

Purpose :

• For purchase/construction/repair and up-gradation of housing units in rural areas.
• "Rural area" for the purpose of the scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed 50,000 (as per the 1991 census).

 Eligibility :

Individual falling under weaker section category as defined in RBI guidelines. Weaker section means and includes :

• Small and marginal farmers with land holding of 5 acres and less, and landless labourers, tenant farmers and share croppers;
• Women
• All individuals eligible for loans under SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY) and Differential Rate of Interest (DRI) i.e. classified as BPL or marginally above the poverty line
• Scheduled Castes, Scheduled Tribes &
• Persons from minority communities as may be notified by Government of India from time to time. In States, where one of the minority communities notified is, in fact, in majority, item (e) will cover only other notified minorities. These States/Union Territories are Jammu & Kashmir, Punjab, Sikkim, Mizoram, Nagaland and Lakshadweep.
  
  Or
• Any person with annual income of not more than Rs.2.00 lacs.

 Quantum of Loan :

• Maximum Loan Rs.15 lakh (Maximum loan for extension, repairs and renovation of house is Rs.5 lakh.)
• Actual loan amount will be determined after taking into factors such as repayment capacity, age, stability and continuance of income, number of dependents, co applicant's income, assets/liabilities etc.

 Loan Cost Ratio :

Loan will be restricted to 75% of the estimate of construction/renovation/cost of house/market value of the property.

 Installment to Income Ratio :

• 45% at Branch level
• Above 45 to 50% at RO Level

 Security :

• First charge on property
• Age of the property not more than 25 years.