The M.P. Sahakari Krishi Aur Gramin Vikas Bank Rules, 2001 13Chapter 3 · Loans

Section 13 · Procedure for submission and consideration of application for loans from Development Banks

(1)

All applications for loans from the State Development Bank or District Development Banks shall he made in the form as may be decided by the State Development Bank from time to time. The form shall among other things contains a list of documents, which are required to be submitted for purpose of dealing with the applications.

(2)

Every District Development Bank, shall keep sufficient stock of printed copies of the forms of loan applications and shall supply them to the intending borrower on payment of such fees as may be determined from time to time by Development Banks.

(3)

Application for loan shall be addressed to the Managing Director/ General Manager/Branch Manager or other Authorised Officer of the State Development Bank/District Development Bank who will be called "Receiving Officer".

(4)

The application, with the copies of necessary document and the amount of all fees determined by the State Development Bank from time to time and the amount equivalent to the value of one share of the Bank shall be submitted by the applicant to the Receiving Officer mentioned in sub-rule (3).

(5)

On receipt of an application for loan, the Receiving Officer shall put his initials on the application and mention his name, designation and the date of receipt of the application.

(6)

After an application for loan has been received, the Receiving Officer shall verify whether it contains all the necessary particulars and is accompanied by the necessary documents. If any details are lacking, he shall get the application completed by the applicant, and immediately it shall be submitted to the Valuation Officer for publication of notice and valuation. The Valuation Officer shall immediately publish a notice under sub-section (2) of Section 19 of the Adhiniyam in Form No. 'A' appended to these rules calling upon all persons interested to file objection or claim or interest within seven days from the date of notification.

(7)

The Valuation Officer shall be the officer appointed/authorised by State Development Bank for publication of notice/enquiry appraisal of loan application and valuation.

(8)

A Security furnished in favour of the State Development Bank or a District Development Bank shall take precedence over and attachment or mortgage or charge or claim over the properties, if the claim or interest under such attachment or mortgage or charge has not been brought into notice to the Development Bank by the interested person/institution within 7 days from the date of such notice. If any attachment of mortgage or charge or claim or interest is noticed within 7 days by the interested person/institution the Valuation Officer shall dispose it off on merits and he shall give a report in the Form 'B' and simultaneously he will also do the valuation work by actually visiting the spot

(9)

The Valuation Officer shall do the enquiry and valuation of the property of applicant and/or the property of the Guarantor and after visiting the spot/proposed improvement/security and conducting inspection himself shall submit his report within ten days to the Bank in the form and manner as may be decided by State Development Bank from time to time.

(10)

After satisfaction, of such enquiry properly conducted and after additional information/enquiry if necessary for full and complete satisfaction, the Chief Executive Officer of the Development Bank shall examine the case and put up before the loan sub-committee of the officer authorised by it for sanction. The Development Bank shall pass his final sanction order within 6 days of the receipt of the report and communicate to the applicant.

(11)

After sanction of loan by State Development Bank/District Development Bank the action will he taken to pledge/mortgage etc. the security of movable/immovable property of the borrower and guarantor in favour of the Development Bank. In such action promise/affidavit of the borrower and guarantor in Form 'C' appended to these rules and Pledge/ Mortgage Deed etc. regarding securities under sub-section (1) of Section 15 shall be included. The format of Pledge/Mortgage Deed etc. of the property of borrower or guarantor shall be decided by the State Development Bank from time to time.

(12)

In case of rejection of application for loans, the reasons thereof shall he communicated by the Bank to the applicant. When the loan is sanctioned, the concerned Development Bank, in connection with such loan, shall communicate to the applicant regarding execution of Pledge/Mortgage Deed, Surety Deed and/or Guarantee Deed etc. and the date and place when the applicant is required to remain present alongwith papers and proposed surety and/or guarantor, information about the sanction of loan, important conditions of its utilisation and compliance will also be given.

(13)

The applicant before receiving the amount of the loans or the first instalment of the loan shall purchase share of the Bank to such extent as my be required by the State Development Bank or District Development Banks. The Development Bank shall issue a receipt to the applicant giving full particulars of the amount paid by him from time to time.

(14)

The amount of loan to be sanctioned on the basis of an affidavit made under sub-section (1) of Section 18 shall not exceed the limit of Rupees Twenty lacs.

(15)

Failure to comply with any time limits specified in these rules shall not in any manner adversely affect the validity of the loan sanctioned and/or disbursed by a Development Bank.

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