Sarva U.P.

Gramin Bank
Sponsor-Punjab National Bank)
Head Office: C-39/5, Jagrati Vihar, Meerut
e-mail: loan@upgb.com website: www.upgb.com

Head Office:Tel.: 0121-2767793,2767796 Fax% 0121-4007290 General Manager:Tel.: 0121-2767518 CM Secretariat:Tel.: 0121-2767731

TO ALL OFFICES LOANS AND ADVANCES CIRCULAR NO. 41/2009

Dated : 14.10.09

REG: SCHEME FOR PROVIDING RELIEF AND REHABILITATION ASSISTANCE TO PEOPLE IN AREAS AFFECTED BY NATURAL CALAMITIES LIKE DROUGHT, FLOOD ETC.

NABARD has been circulating from time to time the guidelines to be adopted by RRBs for providing relief to their borrowers affected by Natural Calamities. The consolidated guidelines have been circulated by NABARD vide its Master Circular No. 229/PCD-26/ 2005 dated 08.12.05 We have finalized the guidelines to be adopted by branches as under. These guidelines are based on NABARD guidelines. Our banks instructions regarding margin, security, moratorium, repayment period, rate of interest, penal interest and documentation have also been incorporated. Branch managers and dealing staff are requested to provide relief to beneficiaries as per these guidelines.

(D.K.Sharma) General Manager. Encl.: Annexure.

C:\Documents and Settings\admin\Desktop\Circlu\Loan 30.05.2011\Circular 2009\HO LA cir.41-09 LA cir.Natural calamities.doc

ANNEXURE

GUIDELINES FOR RELIEF MEASURES TO FARMERS AFFECTED BY NATURAL CALAMITIES

NABARD has observed that periodical but frequent occurrence of droughts, floods, cyclones, tidal waves and other natural calamities take a heavy toll of human life and cause wide spread damage to economic pursuits of human beings in one area or the other of our country. The devastation caused by such natural calamities call for massive rehabilitation efforts by all agencies. The State and local authorities draw programmes for economic rehabilitation of the affected people. The developmental role assigned to cooperative banks and RRBs, warrants their active support in revival of the economic activities. Since the area and time of occurrence and intensity of natural calamities cannot be anticipated, it is imperative that the banks have a blueprint of action in such eventualities so that the required relief and assistance is provided with utmost speed and without any loss of time. Keeping the foregoing in view and to avoid delay in providing relief, a set of standing instructions spelling out the action that the branches will have to initiate in the calamity affected areas immediately after the requisite declaration by the district/ State authorities, are outlined below.

To enable the bank to take uniform and concerted action expeditiously, particularly to provide financial assistance to agriculturists, artisans & self employed persons, SSI & Tiny units, and small business affected by natural calamities, the following guidelines have been adopted by the Bank.

1. To facilitate coordination and expeditious action by the financing institutions, the convenors of the District Consultative Committees of the affected districts convene a meeting immediately after the occurrence of natural calamities. The ROs should remain in touch with the LDM and district authorities for implementation of the programme in collaboration with the State/ district authorities. While determining the quantum of assistance required by a person affected by the natural calamity, the banks may take into consideration the assistance/subsidy received by him from the State Government and/or other agencies.

2. Identification of the beneficiaries The ROs should obtain from the Government authorities concerned lists of affected villages within their area of operation. From among the identified persons, assessment of loss sustained by the existing constituents of the banks would be easier. In the case of fresh borrowers, however, discreet enquiries should be made in this regard and assistance of the Government authorities should be sought wherever available for ascertaining genuineness of their requirements.

3. Priorities Immediate assistance including finances would be needed for protecting and rejuvenating standing crops/ orchards/ plantation, etc. Equally important will be repairs to and protection of live stock sheds, grains and fodder storage structures, drainage, pumping, and other measures and operations to repair pumpsets, motors, engines and other necessary implements. Subject to seasonal requirements, next crop financing is also required to be taken up.

4. Agricultural loans The bank assistance in relation to agriculture would be needed in the form of short term loans for the purpose of raising crops and term loans for purchase of milch/draught animals, repairs to existing tubewells and pumpsets, digging of new tubewells and installation of new pumpsets, land reclamation, silt/sand removal, protection and rejuvenation of standing crops/ orchards/ plantation, etc., repairs and protection of livestock sheds, grain and fodder storage structures, etc.

5. Crop loans In the case of natural calamities such as droughts, floods, etc., the State Government concerned would declare

'annewari'

based on a scientific assessment of crop yields in the affected areas through the

prescribed number of crop-cutting experiments and wherever the 'annewari' so declared is less than 6 annas (i.e. the yield is less than 50% of the average yield in a normal year), the State Government would issue 'Annewari' certificates in the prescribed format and also declare remission/suspension of land revenue and other dues to the Government from the affected farmers, so that the banks could consider extending relief to the affected farmers by way of conversion/rephasement/reschedulement of loans. However, where such declaration has not been made, the bank should not delay in providing conversion facilities. The banks may adopt the following procedure as an alternative to the system of Annewari declaration:

'The District Collector, on occurrence of the natural calamity such as drought, flood etc., may ask the Lead Bank Officer to convene a meeting of the DCC, and submit a report to the DCC on the extent of crop loss in the area affected by the natural calamity. If the DCC is satisfied that there has been extensive crop loss on account of the natural calamity, the relief including conversion/restructuring facilities of agricultural loans as per the standing guidelines may be extended to the farmers affected by the natural calamity, without declaring Annewari.'

6. Guidelines for providing conversion facilities The following steps/procedure is to be adopted for providing conversion facilities:

i. The bank may convert/rephase/reschedule only the principal amount of crop loans/instalments of MT(Conv.) loans due in the year of occurrence of natural calamity from the affected farmer-borrowers. ii. In case of severe damage to crops as evidenced by the 'Annewari' certificates of the State Governments or certificate issued by DCC and accepted by SLBC/Task Force/Steering Committee constituted for the purpose, the amount of interest due from Small Farmers/Marginal Farmers (SF/MF) in respect of the loans eligible for conversion/rephasement/reschedulement, could be deferred for one year. iii. For this purpose, SF/MF will be those farmers whose gross value of produce is Rs.5000 or less, per annum. (subject to revision in SF/MF norm from time to time.) iv. The period of conversion/rephasement/reschedulement to be granted may vary depending on the intensity of calamity and the extent of crop loss and distress caused to the farmers as indicated below. (a) the amounts not collected during the year of occurrence of the calamity to be converted into term loans for a period upto 3 years and for small and marginal farmers, upto 5 years in the normal circumstances. (b) Where the calamity is for two successive years or where the damage to crops arising out of the calamity is severe (75% or more loss in crop yield) and has caused acute distress to the farmer- borrowers, banks may, at their discretion and in consultation with the Task Force/Steering Committee of the SLBC, grant conversion/rephasement/reschedulement facilities for periods upto 5 years. {To be decided by the Regional Officer in terms of quantum of loan}. (c) In extreme cases of hardships arising out of very severe loss to the crops (100% crop loss) or occurrence of three or more successive crop failures and the debt burden being found to be beyond the immediate repaying capacity of the farmer-borrowers, conversion/rephasement/reschedulement facilities for a longer period beyond 5 years but not exceeding 9 years (including period of moratorium if any) could also be considered by banks, in consultation with Task Force/SLBC. {To be decided by the GM (HO).

7. The Bank may not levy any additional interest. Levy of penal interest: In respect of current dues in default, no penal interest will be charged. The branches should also suitably defer the compounding of interest charges. Branches may not levy any penal interest and waive penal interest, if any, already charged in regard to the loans converted/rescheduled. 8. Fresh Loans: The affected borrowers whose ST loans have been converted into MT(C) loans have to be extended crop loans as per their eligibility, scale of finance, repaying capacity, etc. for raising fresh crops. The Branch incumbent may decide the quantum of such fresh short-term crop loans (but the same will be restricted to the borrowers eligibility as per scale of finance in vogue for the particular crop(s) within his vested powers). 9. NPA Classification:

On the treatment of agricultural loans affected by natural calamities for the purpose of prudential norms and NPA classification, norms fixed by RBI should be followed. 10. Investment Credit Persons affected by natural calamity may be given the facility of restructuring/rescheduling of the existing loans, and interest due, clubbed together, to be repaid over a period of 5 years with a moratorium of 2 years depending on the income generation and repaying capacity. In cases where there is a partial/total loss of asset (such as death of milch animal, destruction of poultry sheds, destruction of plantation and horticultural crops etc.), Incumbents Incharge may consider fresh loans to the existing borrowers for rehabilitation/ replacement of asset/creation of asset, Insurance claims, if any, received will be adjusted towards the loan account and the restructuring/ rescheduling facility will be restricted to the balance amount. 11. Consumption Loans In view of the damage to crops and property, existing borrowers may need consumption loans for sustenance till the flow of income is resumed. The Incumbents Incharge may extend general consumption loans up to Rs 1,000 to eligible persons in the areas affected by natural calamity. 12. Artisans and self-employed persons For all categories of rural artisans and self-employed persons including handloom weavers, loans will be needed for repairs of sheds, replacement of implements, and purchase of raw materials and stores. In sanctioning the loan, due allowance will be made for subsidy/ assistance available from the State Government concerned. 13. Small Scale and Tiny Units Rehabilitation of units under village and cottage industry sector, small-scale industrial units will also need attention. Term loans for repairs to and renovation of factory buildings/sheds and machinery as also for replacement of damaged parts and working capital for purchase of raw materials and stores will need to be provided urgently. Where the raw materials or finished goods have been washed away or ruined or damaged, banks security for working capital will naturally be eroded and the working capital account (Cash Credit or Loan) will be out of order. In such cases, Incumbents Incharge will convert drawings in excess of the value of security into a term loan and also provide further working capital to the borrower, within his vested powers.4Depending on the damage suffered and time needed for rehabilitation and restarting production and sales, term loan instalments will have to be suitably rescheduled, keeping in view the income generating capacity of the unit. Shortfall in margins will have to be condoned or even waived and borrower should be allowed time to build up margin gradually from his future cash generation. Wherever State Government or any agency has formulated special scheme for providing grants/ subsidy/ seed money, suitable margin may be stipulated to the extent of such grants/ subsidy/ seed money. The primary consideration before the bank in extending credit to a small/tiny unit for its rehabilitation should be the viability of the venture after the rehabilitation programme is implemented.

14. Security Norms Where the bank's existing security has been eroded because of damage or destruction by floods, assistance will not be denied merely for want of additional fresh security. The fresh loan may be granted even if the value of security (existing as well as the asset to be acquired from the new loan) is less than the loan amount. For fresh loans, a sympathetic view will have to be taken by the branches. (i) Where the crop loan (which has been converted into term loan) was earlier given against personal security/ hypothecation of crops and the borrower is not able to offer charge/mortgage of land as security for the converted loan, he/she should not be denied conversion facility merely on the ground of his inability to furnish land as security. If the borrower has already taken a term loan against mortgage/charge on land, the conversion of the crop loan into term loan should be secured by creating a second charge on the already mortgaged land. Branches should not insist on third party guarantees for providing conversion facilities. (ii) In the case of term loans for replacement of equipments, repairs, etc., and for working capital finance to artisans and self-employed persons or for crop loans, usual security may be obtained. Where land is taken as security in the absence of Original Title Records, a Certificate issued by the Revenue Department Officials may be accepted for financing farmers who have lost proof of their titles i.e. in the form of deeds as also the Registration Certificates issued to registered share-croppers.

15. MARGIN: Margin requirements may be waived as per the decision of SLBC or the grants/ subsidy given by the concerned State Government may be considered as margin. 16. Reschedulement/ conversion /Deferment of instalments Reschedulement of short term loan and deferment of instalments is to be considered by the sanctioning authority or the concerned officer only where Damage to the crop is more than 50% in terms of 'annewari' declared by district administration / SLBC or considered eligible for deferment in the especially convened DCC meeting. All incumbents incharge can consider deferment of amount due only upto 3 years. the amount of interest due from Small Farmers/Marginal Farmers (SF/MF) in respect of the loans eligible for conversion/ rephasement/ reschedulement, could be deferred for one year. ROs can consider deferment upto 5 years.

17. Documentation Further, at the time of Reschedulement, certain supplementary documents are required to be taken which are provided as per appendix - I to V. The essential documents for different loans will be as under: a) General Documents to be taken in all cases of Reschedulement:

1. LETTER OF REQUEST

: Appendix -I

2. LETTER OF INTIMATION - FOR CONVERSION OF CROP LOAN (CC) INTO TERM LOAN (TL) AND FOR RESCHEDULEMENT OF TERM LOAN : Appendix II 3. CONSENT LETTER FROM GUARANTOR : Appendix III

4. BALANCE CONFIRMATION (BC) LETTER FROM BORROWER(S)/ GUARANTOR(S)

b) Additionally, the following documents are required in different cases: (i) For KCC : - SUPPLEMENTARY TERM LOAN AGREEMENT (ii) For Term loans: - SUPPLEMENTARY TERM LOAN AGREEMENT FOR SMALL LOANS : Appendix V (iii) For Consumption loan: - SUPPLEMENTARY TERM LOAN AGREEMENT FOR SMALL LOANS : Appendix V : Appendix IV

In case of fresh KCC loan is to be considered, the usual documentation prescribed for fresh KCC loans vide Loans & Advances cir. No. 18/07 dated 30.11.07 shall continue to be obtained and safeguards prescribed therin to be meticulously followed.

18. In order to avoid delay in taking relief measures on the occurrence of natural calamity, the branches are advised to follow the above guidelines and ensure that the affected farmers and other persons are suitably provided relief. Appendix I to Appendix V are enclosed for ready reference.

*****

APPENDIX-I LETTER OF REQUEST [For Conversion of Cash Credit (CC) facility/Rephasement of Term Loan (TL)] The Manager, Sarva UP Gramin Bank, BO ______________. Reg: Account No. *Cash Credit (CC) Sir, I/We are unable to keep up repayment in the above account due to occurrence of natural calamities. / *Term Loan (TL)

I/We request you to *convert the Cash Credit facility into Term Loan *extend the period of repayment of Term Loan and prescribe schedule/new schedule of repayment. SCHEDULEMENT OF REPAYMENT (PROPOSED)

Yours faithfully, Place: ________________ BORROWER(S)/MORTGAGOR(S) Date: ________________ *Strike off whichever is inapplicable. (i)

APPENDIX-II LETTER OF INTIMATION FOR CONVERSION OF CROP LOAN (CC) INTO TERM LOAN (TL) AND FOR RESCHEDULEMENT OF TERM LOAN To Shri___________________________ ______________________________ Dear Sir, Subject: Your liability under Loan Account No.____________ with us.

Please refer to the loan papers executed by you in respect of the limits referred to in the subject. The liability(ies) in the aforesaid account as on ________________ is/are detailed hereunder: 1. 2. 3. On review of your loan account, we hereby permit you to repay as follows: -

SCHEDULE OF REPAYMENT

(ii)

The other terms and conditions of the loan shall remain unaffected in so far as rights of the Bank end your obligations are concerned.

Yours faithfully,

FOR SARVA UP GRAMIN BANK

I agree to the above.

MANAGER BORROWER(S)

Place: ___________________

Place: ___________________

Date: ___________________

Date: ___________________

(iii)

APPENDIX-III CONSENT LETTER FROM GUARANTOR

The Manager, Sarva UP Gramin Bank, BO _____________ District ___________. Sir, Reg.: Continuance of guarantee for the Loan granted to Shri______________________ S/o Shri_______________________ R/o_____________________________________________________

The Bank has granted term loan of Rs.________________________________ to Shri _________________________________S/o Shri ___________________________ ______________________________________________________________________ for the purpose of________________________________________ vide Loan Agreement dated______________. The repayment of above loan has been guaranteed by me/us in terms of Agreement of Guarantee dated______________ executed by me/us. It has now been agreed by and between the borrower(s) Shri___________________________________________________________________ aforesaid and the Bank to reschedule the repayment programme as per Letter of Request dated________________ of the borrower(s) and confirm that my/our guarantee shall continue and remain binding irrespective of change in repayment programme and I/we undertake to continue to be liable for the same. Thanking you, Yours faithfully,

Place:___________________ Date:___________________ (iv)

Signature/Thumb Impression of Guarantor(s) with address.

APPENDIX-IV SUPPLEMENTARY TERM LOAN AGREEMENT THIS SUPPLEMENTARY AGREEMENT made at___________________ this_________ day of_______________________ between Shri______________________________ S/o Shri_______________________________________________________________ residing/having place of business of __________ ______________________hereinafter referred to as The Borrower(s) (which expression shall unless the context or subject otherwise requires, include his/her heirs, executors and administrators) of the One Part and SARVA UP GRAMIN BANK, a body corporate constituted under the Regional Rural Bank Act, 1976, carrying on banking business and having its Head Office at C-39/5, Jagriti Vihar, Meerut and one of the branch office at___________________________________ hereinafter referred to as the Bank (which expression shall, unless the context or subject otherwise requires, include its successors and assigns) of the Other Part.

WHEREAS the Bank has granted to the Borrower a loan for the purchase of his business of____________________ as per Term Loan Agreement dated____________ whereby the Borrower(s) has by way of security for repayment thereof along with interest and other charges, hypothecated with Bank goods________________________________________________________________ hereinafter referred to as the hypothecated goods.

AND WHEREAS the Schedule-II of the above Term Loan Agreement dated_________________ provides the repayment of aforesaid loan in _______years by monthly/quarterly/half-yearly/yearly installment of Rs._______________________.

AND WHEREAS the Bank has agreed to revise the repayment schedule as provided in the above Term Loan Agreement. NOW THIS DEED WITNESSETH and it is hereby agreed by and between the parties hereto as follows: That the Borrower shall repay the principal loan amount together with interest thereon by installments in the manner set out in Schedule-I hereto. PROVIDED that notwithstanding anything contained herein or in the Agreement dated______________ in default of the payment of any of the aforesaid installment on the due dates or on the happening of any events sanctioned in the Agreement dated_____________ the Bank shall be entitled to recall and the Borrower shall in that event pay the whole of the moneys then owing from the Borrower to the Bank whether by way of principal, interest or otherwise. (v)

PROVIDED FURTHER that notwithstanding anything herein contained or in the Agreement dated______________ in the event of non-payment of any installment and/or any interest on the due date, such arrears shall bear interest at the rate of ___________ percent per annum with ________rests until the interest and/or installment in arrears as the case may be are paid in full. That this Agreement shall be supplemental to the Agreement dated__________ and all other terms and conditions mentioned therein shall be treated as part of this Agreement. SCHEDULE-I

Signature of the Borrower

Signature of the Bank Date: Place: (vi)

APPENDIX-V SARVA UP GRAMIN BANK

Supplementary Term Loan Agreement for Small Loans

This supplementary Agreement made at________________ this___________ day of_____________________ between Shri________________________________ S/o Shri_______________________________________ residing/having place of business of___________________________________________________________ hereinafter referred to as the Borrower (which expression shall unless the context or subject otherwise requires, include his/her heirs, executors and administrators) of the One Part and SARVA UP GRAMIN BANK, a body corporate constituted under the Regional Rural Bank Act, 1976, carrying on banking business and having its Head Office at C-39/5, Jagriti Vihar, Meerut and one of the branch office at___________________________________ hereinafter referred to as the Bank (which expression shall, unless the context or subject otherwise requires, include its successors and assigns) of the Other Part. WHEREAS the Bank has granted to the Borrower(s) a loan for the purpose of his business as per Term Loan Agreement dated____________ whereby the Borrower(s) has/have by way of security for repayment thereof hypothecated with Bank goods_________ _______________________________________________ hereinafter referred to as the goods hypothecated. AND WHEREAS the Bank has agreed to grant further loan to Borrower(s) for consumption purposes as per Borrower(s) application dated___________________. AND WHEREAS it has been agreed that the goods hypothecated shall also be security for the repayment of the dues under this Agreement and the Bank shall have General Lien thereof by way of additional charge. NOW THIS DEED WITNESSETH hereto as follows: 1. and it is hereby agreed by and between the parties

The Bank agrees to lend to the Borrower(s) and the Borrower(s) agrees to borrow from the Bank for the purpose of and subject to the conditions hereinafter set out (as also in the Borrower(s) said application) a loan to the maximum extent of Rs._____________ (_______________________________________) carrying interest @ _______ per cent per annum with _____________ rests. The loan will be disbursed by the Bank to the Borrower(s) or to his/her nominee(s) in Schedule-I appended, in instalments as given in the said Schedule-I.

(vii)

2.

The Borrower(s) shall pay the principal loan amount together with interest thereon by installments in the manner set out in Schedule-II hereto. PROVIDED that notwithstanding anything contained herein, in default of the payment of any two of the aforesaid installments on the due dates or on the happening of any events mentioned in Clause 7 below, the Bank shall be entitled to recall and the Borrower(s) shall in that event pay the whole of the moneys then owing from the Borrower(s) to the Bank, whether by way of principal, interest or otherwise, PROVIDED ALSO that notwithstanding anything herein contained, in the event of non-payment of any installment and/or any interest on the due date, such arrears shall bear interest at the rate of________ per cent per annum with ____________ rests until the interest and/or installment in arrears, as the case may be, are paid. The Borrower(s), before availing of the loan or any part of it, if so required by the Bank shall: (i) (ii) Secure the loan by providing an acceptable security and/or Open a (Savings) Bank Account with the Bank and shall, unless otherwise agreed to by the Bank in writing, at least once a week deposit in the said account, the whole of the proceeds of his business for the week.

3.

The Bank shall have a right to appropriate and adjust from the amounts in the said account such amounts as the Bank may consider necessary or desirable, towards the principal amount, interest and other charges payable by the Borrower(s) to the Bank. 4. As security for the payment to the Bank of the amounts due under or arising from this Agreement, the Borrower(s) hereby hypothecates into the Bank by way of additional charge the assets described and detailed in Schedule-III hereto and the same shall remain and continue hypothecated and charged with the Bank as security till its entire dues are received by the Bank. The Borrower(s) shall furnish to the Bank periodical statements relating to the said assets, as may be prescribed by the Bank and shall also keep the Bank informed from time to time about the place(s) and/or where the hypothecated goods are kept. 5. The securities hereby created are continuous and shall operate for the balance from time to time, due to the Bank and neither the loan account of the Borrower(s) shall be treated as closed for the purpose of these securities nor shall these securities be treated as exhausted or discharged by reason of the Borrower(s) account being brought to credit at any time or time to time.

(viii)

6.

The Borrower(s) hereby agree(s) that a margin at the rate specified in Schedule-III against various types of securities of such other margin as may be fixed from time to time by the Bank, shall always be maintained by them in favour of the Bank, that is to say, that the balance due to the Bank on the said account shall always be kept lower than the market value or invoice value of the security to be determined by the Bank at its discretion (which value will not be questioned by the borrower(s) by the stipulated margin percentage or such other percentage as may be fixed from time to time by the Bank. If at any time the said margin falls for whatever reason below the said percentage, the Borrower(s) agree(s) on demand in writing to immediately make it up by cash payment or deposit of further security approved by the Bank. In case of default by the Borrower(s), in this behalf, the whole amount due to the Bank on the account shall become payable at once. If the Borrower(s) shall fail to perform any of his obligations under these presents or if the Bank shall be of opinion that the security hereby created is otherwise imperilled or is likely to be impaired as to all or any of which matters the opinion of the Bank shall be conclusive, it shall be lawful for the Bank, its agents and nominees, without assigning any reason and without any previous notice to the Borrower(s) and at the Borrower(s) risk and expense, to enter upon the said premises and/or take possession of the said hypothecated goods wherever lying and/or to call the same without notice. The Borrower(s) shall, on demand, deliver to the Bank the possession of the hypothecated goods. The Bank shall apply the net proceeds of sale of the said hypothecated goods in satisfaction so far as the same shall extend to the moneys which shall be then owing and due from the borrower to the Bank under this Agreement and Term Loan Agreement made on__________________. If the net sale proceeds are insufficient to cover the amount due to the Bank under this Agreement, the Borrower(s) shall be liable forthwith to pay the balance appearing due to the Bank and if there is surplus after adjusting amounts due under the Term Loan Agreement and this Agreement, the Bank shall be entitled to adjust/set off the same for any other sums/amounts, due to the Bank from the Borrower(s) in any other account whatever. The Borrower(s) hereby covenant(s) with the Bank that the Borrower(s) has not in any way hypothecated, charged or encumbered except for the first charge of the Bank created under Agreement made on _____________ nor will hereinafter hypothecate, charge or encumber the said hypothecated goods, except with the specific written permission of the Bank.

7.

8.

(ix)

SCHEDULE-I LOAN DISBURSEMENT

SCHEDULE-II REPAYMENT SCHEDULE

SCHEDULE-III SECURITIES CHARGED/TO BE CHARGED TO THE BANK

Date:_____________

SIGNATURE OF THE BORROWER

Place_____________

SIGNATURE OF THE BANK

(x)

Sarva U.P.Gramin Bank

Sponsor-Punjab National Bank)
Head Office: C-39/5, Jagrati Vihar, Meerut
e-mail: loan@upgb.com website: www.upgb.com

Head Office:Tel.:0121-2767793,2767796 Fax% 0121-4007290 General Manager:Tel.: 0121-2767518 CM Secretariat:Tel.: 0121-2767731

PUNJAB NATIONAL BANK RETAIL BANKING DIVISION

1 TOLSTOY MARG, NEW DELHI. TEL: 23357900, 23315484, 23325066 FAX Nos.- 011-23753375, 23357898 RBD (A)

HO: ATMARAM HOUSE,

RBD ADVANCES CIRCULAR NO. 58/2009

TO ALL OFFICES

RETAIL BANKING DIVISION: ADVANCES: CIRCULAR NO:58 PNB FESTIVAL SEASON BONANZA OFFER 2009
Guidelines regarding PNB Festival Season Bonanza 2009 were issued in terms of RBD Advances Circular NO. 41 dated 12.08.2009, 46 dated 28.8.2009 and 54 dated 29.9.2009. 2. Based on the feedback received from the field, it has been decided to extend the validity date of the captioned Bonanza for housing loans upto Rs.30 lacs and Car Loans, upto 31.12.2009, on the existing terms & conditions. Further, the Bonanza Offer shall be applicable in respect of loans sanctioned during Bonanza period i.e. upto 31.12.2009 and disbursed upto 31.01.2010. 3. Keeping in view the prevailing customer friendly market scenario, it is opportune time to add volume to retail asset book. It is, therefore, advised that aggressive marketing/publicity campaigns of the Bonanza Offer be ensured for maximum business. 4. Progress in this respect be conveyed to us through Circle Office, on fortnightly basis (as per the proforma overleaf); first report be sent as on 14.11.2009. 5. The accounts should be opened in CBS, strictly with Interest Rate/Mode of Advance/Scheme codes, as conveyed through RBD Advances Circular No. 41 dated 12.8.2009. 6. All concerned are advised to note the above guidelines for meticulous compliance. (SUDESHNA SHARMA) GENERAL MANAGER

Dated : BRANCH/HUB/CCPC _____________________ CIRCLE OFFICE ___________________

FORTNIGHTLY REPORT UNDER PNB FESTIVAL SEASON BONANZA-2009 FOR THE FORTNIGHT ENDED ___________________. amount in lacs

Scheme No. of accounts sanctioned during the fortnight 1.11.2009 to _____________

Amount Total number of sanctioned loans sanctioned during the under Festival fortnight Bonanza upto 1.11.2009 to ________ ____________.

Total amount of loan sanctioned under Festival Bonanza upto _____________.

Housing Car Total

PUNJAB NATIONAL BANK RETAIL BANKING DIVISION

1 TOLSTOY MARG, NEW DELHI. TEL: 23357900, 23315484, 23325066

HO: ATMARAM HOUSE,

FAX Nos.- 011-23753375, 23357898 RBD ADVANCES CIRCULAR NO. 41/2009

RBD (A)

Dated: August 12, 2009

TO ALL OFFICES
RETAIL BANKING DIVISION: ADVANCES: CIRCULAR NO:41

PNB FESTIVAL SEASON BONANZA OFFER 2009

HOUSING LOANS UPTO RS.30.00 LACS AND CAR LOANS________ To accelerate credit growth, it has been decided to come out with a Bonanza Offer under the title PNB Festival Season Bonanza 2009 containing special concessions/relaxations for prospective Housing and Car Loan borrowers availing loan during the period from 14.8.2009 to 31.10.2009. Details are as under :HOUSING LOANS UPTO RS.30.00 LACS Interest Rate 8.50% (fixed, with a reset clause of three years) applicable across all repayment tenors First re-set will be done on 01.01.2013 and thereafter every three years. For loan upto Rs.20 lacs 15% For loan above Rs.20 lacs 25% Processing (upfront) Fee & NIL Documentation Charges Take-over/Swapping Not to be permitted.

Re-set Clause

Margin

Other terms & conditions These will be applicable as per Banks regular Housing Finance (including charges for pre- Scheme for Public. payment of loan and change of option from fixed to floating) The Housing Loan Agreement be, however, taken as per the revised format at Annexure I.

-2CAR LOANS Interest Rate For loans with repayment tenor

Upto 3 years 10% Above 3 years 10.50%

The above rates will be under fixed interest rates option. First re-set to be done on 01.04.2011 and thereafter every year as per Banks regular Car Loan Scheme.

Re-set Clause be got suitably amended in the prescribed Car Loan Agreement before its execution. Note : The above interest rates are no more linked to PNB Score Model, instead to be fixed on the basis of repayment tenor, as above.

2. No further concession in interest rate and service charges will be permitted by any authority in the field under the captioned Offer. Even the provisions of Mahila Shasktikaran Scheme containing rate of interest, margin requirement and other relaxations in case of women borrowers, will not apply.

3. It is advised that maximum use of above concessions/relaxations be made for quantum jump in the credit offtake during the period of Festival Season Bonanza offer upto 31.10.2009. Incumbents should also ensure that staff at all levels and prospective borrowers are sensitized about all the provisions/concessions of the Offer. A wide and penetrative publicity campaigns be also launched for success of the Offer.

4.. The accounts should be opened in CBS, strictly with following Interest Rate/Mode of Advance/Scheme codes :-

Nature of Loan under Bonanza Offer Housing Loan

Interest Code

Mode of Advance Code

Scheme Code

HLFSB

DHFSB

TLPHL

Car Loan

For repayment tenor -upto 3 yrs. VFBU3 -above 3 yrs.- VFBA3

DCFSB

TLPVL

5.

All concerned are advised to note the above guidelines for meticulous compliance.

(SUDESHNA SHARMA) GENERAL MANAGER

Sarva U.P.Gramin Bank

Sponsor-Punjab National Bank)
Head Office: C-39/5, Jagrati Vihar, Meerut
e-mail: loan@upgb.com website: www.upgb.com

Head Office:Tel.: 0121-2767793,2767796 Fax% 0121-4007290 General Manager:Tel.: 0121-2767518 CM Secretariat:Tel.: 0121-2767731

TO ALL OFFICES
LOAN AND ADVANCES: CIRCULAR NO : 45/09

11/11/09

SUPGB FESTIVAL SEASON BONANZA OFFER 2009

HOUSING LOANS UPTO RS.30.00 LACS AND CAR LOANS To accelerate credit growth, it has been decided to come out with a Bonanza Offer under the title SUPGB Festival Season Bonanza 2009 containing special concessions/relaxations for prospective Housing and Car Loan borrowers availing loan during the period from 07.11.2009 to 31.12.2009. and Disbursed UPTO 31/01/09 Details are as under :HOUSING LOANS UPTO RS.30.00 LACS Interest Rate 8.50% (fixed, with a reset clause of three years) applicable across all repayment tenors First re-set will be done on 01.01.2013 and thereafter every three years. For loan upto Rs.20 lacs 15% For loan above Rs.20 lacs 25% Processing (upfront) Fee & NIL Documentation Charges Take-over/Swapping Not to be permitted.

Re-set Clause

Margin

Other terms & conditions These will be applicable as per Banks regular Housing (including charges for pre- Finance Scheme for Public. payment of loan and change of option from fixed to floating) The Housing Loan Agreement be, however, taken as per the revised format at Annexure I.

-2-

2. No further concession in interest rate and service charges will be permitted by any authority in the field under the captioned Offer. 3. It is advised that maximum use of above concessions/relaxations be made for quantum jump in the credit offtake during the period of Festival Season Bonanza offer upto 31.12.2009. Incumbents should also ensure that staff at all levels and prospective borrowers are sensitized about all the provisions/concessions of the Offer. A wide and penetrative publicity campaigns be also launched for success of the Offer.

4.. The accounts should be opened in CBS, strictly with following Interest Rate/Mode of Advance/Scheme codes :-

Nature of Loan under Bonanza Offer Housing Loan

Interest Code

Mode of Advance Code

Scheme Code

HLFI5 to HLFI8

DHFSB

TLRTS

5.

All concerned are advised to note the above guidelines for meticulous compliance.

(D K SHARMA) GENERAL MANAGER

Sarva U.P.Gramin Bank

Sponsor-Punjab National Bank)
Head Office: C-39/5, Jagrati Vihar, Meerut
e-mail: loan@upgb.com website: www.upgb.com

Head Office:Tel.: 0121-2767793,2767796 Fax% 0121-4007290 General Manager:Tel.: 0121-2767518 CM Secretariat:Tel.: 0121-2767731