ACTIVITY FLOW AT LOANS BRANCH

P
A
D
B

Allocation of receipt
reg. no...

Pronote

Allocation of Lot no.

Clerk

Verification of
documents

Pronote

Clerk

Clerk

Lot no. details

Receipt details

PADB wise
Pronote files/
correspondent

Receipt
Register

No
.

Are document
in order?

Yes

Details of
objection
Attachment of rejection
letter & signing

Pronote

Verification of objection

A
Law Officer

DGM(Loans)

Confirmation of Objections
Attachment of
Sanction certificate

Pronote

Field Officer

Verification of
documents/Passing of
sanction certificate

Law Officer

Pronote & Sanction Certificate

Verification of
documents/Passing of
sanction certificate
DGM(Loans), DGM(A/C)

Pronote

& Sanction
Certificate

T
S

LOANS BRANCH
MAJOR ACTIVITIES OF LOANS BRANCH
Accepting Pronotes sent by PADBs.
Verification of Pronote
Attachment of Sanction Certificate with the Pronote on acceptance.

Activity flow at Loans branch

The Loan branch is the first place where the Pronote comes. The Deed is in the name of the
respective PADB from where it comes but the physical possession of the same with Deed
Branch of SADB.
1. The Pronotes are first set purpose wise.
2. The Pronote is allotted a receipt registration number & an entry is made in the
Receipt register.
3. After entering the receipt registration number, the pronote is allotted a lot number &
the sheet is attached to the PADB wise file.
4. The Pronote is sent to the Field Officer for verification. The Field Officer checks for the
following documents:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
xvii.

Index Sheet
Installment Bond
Resolution
Disbursement list
Financial position of bank
Certificates
Information regarding loan advanced to small farmers
Statement regarding loan advanced to SC/ST
Code/Purpose code statement
Manager's statement regarding the bond
Statement for raising loan from SADB, Chandigarh
Unit wise statement
Hectare wise statement
Dairy/Poultry purpose wise statement
Amount already claimed statement
Utilization certificate by manager
Delivery certificate

xviii.
xix.
xx.
xxi.

Borrower's receipt
Mortgage deed
Copy of mortgage deed
Office note

5. In case, the documents are found in order, the Pronote is passed to the Law Officer
who also verifies the documents & forwards it to the Field Officer for attachment of the
sanction certificate.
6. The Field officer attaches the Sanction Certificate & forwards it to the Law officer.
7. The Law officer signs the Sanction Certificate & forwards the Pronote & sanction
certificate to DGM (Loans).
8. DGM (Loans) verifies the Pronote & signs the Sanction certificate & the Pronote with
the Sanction Certificate is forwarded to DGM (Accounts).
9. In case, the documents are not found in order then the field officer raises an objection.
10. The Law Officer will verify the objection.
11. In case the objection, which has been raised, is found right then a rejection letter is
attached, signed by DGM (Loans) & sent to the concerned PADB.
Partial payment is not allowed for any Pronote. Any other branch cannot rule out the amount
sanctioned by the loans branch.

ACTIVITY FLOW AT DLA

C
C

Payment Voucher

Verification of
voucher

Loan Advancement
Ledger

D
S

Clerk

After filling credit side

Manager (DLA)
Payment voucher
for final payment

Loan
Ledger

Share
Ledger

Loan Ledger
Balance Book

T
S

Checks: MCL
Prepares: Debit side of Payment Voucher
Attaches: DSR to pronote
Makes: Entries in Books

Passing of
Voucher

D
E

Asstt. Mgr. (DLA) 2

Payment Voucher

Mgr.(DLA),
Asstt. Mgr.(DLA)

Payment Voucher

Pronote

Pronote

Asstt. Mgr.(DLA) 1

DGM (A/C), Manager

(A/C)

O
U

Pronote

Marking of
Pronote to clerks

Pronote

Passing of
Pronote

Makes: Entries in
Books
Prepares: Performance
report

Calculation of Principal & Interest

outstanding
Field Officer

P
Verification &
Passing of
confirmation letters
(Int. & Prin.)
Manager (DLA)

A
Confir
mation

Letters

D
B

PROCESS FLOW
1. Receive mortgage deeds/pronotes from the Loan Section along with the checking
certificate which is signed by the Field Officer, Legal officer & authorized officer
sanctioned the pronote as first operator for releasing loan amount.
2. After receiving the pronote from Loan branch, which is in order to the account branch
of DLA Section to check the pronote to ascertain that the loan is within the MCL & also
the share capital is sufficient as per the rules & the authorized officers pass the
pronote as second operator.
3. In the Account branch of DLA Section the Mortgage Deed is entered in the PADB
Ledgers (which is rate-wise & purpose-wise). There are three main rates in which
advancement is made to the PADBs (8.25% , 11% & 12.75%).
4. After the entry in the Ledger (PADB wise) an advance voucher & advice in favour of
the PADB is prepared by DLA section & debited the Loan account of PADB & submit
the voucher/document to account section. The account section arrange to remit the
amount to the particular PADB through the Commercial Banks by crediting the
Bankers.
5. Before the raising of Advance Voucher a simultaneous entry of instalment bonds
along with the date of raising of IB & date of receipt is made in the Ledger. This ledger
is maintained PADB wise - rate wise meaning thereby that a separate ledger for
different rate & different schemes.SDS & NFS schemes are all clubbed into one.
6. In the Ledger each PADB account is maintained on a separate page & the previous
year closing becomes this year opening balance. All the loans advanced by the SADB
to the PADB against pronotes are debited & are entered instalment bond (IB) no. wise. Date of receipt of IBs is also entered along with IB amount. All the recovery of
principal & interest from the PADB is credited. The running balances of Principal &
Interest are calculated & are separately maintained on separate pages.
7. During the end of the financial year difference of days between the transactions is
taken out which is then multiplied by the running balance standing as on the date of
last transactions. The resulting amount is then totaled up throughout the full financial
year & divided by the total no. of difference days ( throughout the year ) & finally
multiplied by the interest rate of the scheme to arrive at the interest for the full year on
the running balance amount. This procedure is done on 31st March of financial year &
is done for all the PADBs on the principal amount only. The interest amount is debited
to the PADBs interest a/c to arrive at the closing position of interest. The final running
balance remaining at the end of financial year becomes PADBs closing balance of
principal. This amount is due from the PADB.
8. Each PADB on their part also maintained a similar ledger which should be tallied with
the of ledger at the SADB once every month.

9. Apart from the above, account branch of account section also maintained a share
ledger where the share capital of PADB is maintained.
10. Loan Quist bandi is done bi-annually based on the seasoning of crops.All loan
transaction (recovery) between 1st January & 30th June & between 1st July & 31st
December are maintained separately .Recovery of loans start from 1 year after the
loan amount is taken & is entered either in Kharif or Rabi register.Thsi register is also
known as the Qist Bandi Register or the Installment Register. All the loan taken by the
PADB under a particular scheme from 1st January to 30th June are maintained in a
separate register known as "Rabi Register" whereas tose taken from 1st July to 31st
December are entered in "Kharif Register".The loans taken during Rabi/Kharif season
in the previous years are also entered under their instalment Nos. Annual equated
instalments are calculated separately for principal & interest & becomes the amount to
be recorded from PADB for the season under that particular scheme. The annual
equated instalment is calculated for all the schemes ,totaled up & entered in the
recovery register of the PADB under the particular scheme .The annual installments
are calculated on the formula
(P * r * (1 - r)^n)/(((1 + r)^n) - 1)
All the recovery of loan amount is done on the basis of annual equated instalments.
The amount recovered from the PADB is credited in the Loan ledger. Recovery of
principal & interest is done separately in the ledger.
11. All the payment of recovery amount by the PADB has to be made before the 30th
June & 31st December otherwise 1% penalty on the principal amount is charged by
the SADB.
12. During the grace period of a particular scheme only the interest part is recovered & no
recovery of principal is done.
13. If during the scheme period the interest rate of the scheme changes w.e.f. .A particular
date then all the recovery of loan (taken after the particular date) will be done taking
into considerations the new rate. Rate change is done by NABARD.
14. Payment by PADB to SADB of loans instalment is done by either a demand draft or a
debit note & no cash transaction is done.
15. A receipt voucher of recovery instalment is prepared by the account branch of
accounts section of the SADB. If the payment is received through draft/cheque ,then
the voucher for bill for collection is prepared & after realizing the draft/cheque, voucher
for bill for collection is reversed & also debited to the banker's accounts. The recovery
instalment voucher submitted to the account branch of DLA section for crediting the
loan accounts & also the interest amount is credited. If the payment is though a debit
note then the PADB Deposit A/c is debited with the amount payable by PADB &
PADB A/c & the interest A/c is credited.
16. In case of bifurcation of PADB, all the loans advanced to the PADB after the date of
bifurcation (covering the newly formed PADB) is transferred to the newly formed

PADB's A/C (in the Ledger). The opening balance of the new PADB in such case is
NIL. The loans advanced in the previous years under particular scheme are also
transferred. The recovery from the newly formed PADB is done on the basis of the
loan transferred. The loan recovery already made from the old PADB before
bifurcation is also transferred to the new PADB A/C.
17. At the end of the Financial year the A/Cs are tallied with the outstanding amount of the
PADB and a confirmation report to the various PADB's is sent depicting the
outstanding amount in various schemes. The PADB's are to confirm such amount. In
case of difference check with the Ledger and detect the difference amount.
18. On receipt of the confirmation report from the PADBs the closing balance and interest
of a particular scheme are transferred to the new Ledger as Opening Balance.
19. The Pass Book of Loan account of Principal as well as interest is also introduced at
the time of realising the loan or remitting the recovery instalment, the messenger of
the particular PADB kept his pass book while visiting the Chandigarh and complete it
in all respect. Similarly the pass book of Deposit Account with PADB is also introduced
and it should also be recorded the entry while any transaction is to be made.