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A Performance appraisal of Urban Co-Operative Bank, Subhash Nagar

(Bareilly)

Post Graduation Diploma in Management Approve by all India Council


of Technical Education, New Delhi

2015-17
Under the Guidance of:

Submitted By:

Branch Manager

Roshni Thukral

Aryandra Singh

1501050
PGDM (2015-17)

ACKNOWLEDGEMENT

Thanks to the almighty for showering his blessing on completion of my


project. I want to thanks all the employees of the Urban Co-operative Bank
Ltd. (Bareilly) for their cooperation in successfully completion my project
works on P.C.C.B.
I am very thankful to all employees of Subhash Nagar Branch for their
co-operation. I am thrilled to find that people here were very co-operative and
helped me in all possible ways
I am especially thankful to Dr. Ashish Saxena (Placement Manager)
who is one of the busiest people for giving me actual knowledge about the
successful banking, detail knowledge of Loan Procedure, Loan Schemes and
giving me time out of his precious schedule.
I am also thankful to my institute Lotus Institute of Management,
Bareilly to help me in attaining the opportunity to learn the practical aspects of
my curriculum through this Industrial-Training Program.
I am sincerely thankful to our chairman sir Mr. Abhishek Agarwal,
Director Sir Mr. Pankaj Dixit, Exam Cont. Dr. Shobhit Saxena and all my
faculty members who contributed in my development through their diligent
efforts and make me capable and confident enough to understand the industrial
environment and who guided me in preparing my training report.

ROSHNI THUKRAL
1501050
(PGDM 2015-17)

DECLERATION

I hereby declared that the summer training project report titled submitted in
partial fulfillment of requirement of the PGDM. Programme2015-17 batch
offer by Lotus Institute of Management, Bareilly is based on genuine works
undertaken during the courses of the summer training project.
This report has not been submitted to any other institution or university
for the fulfillment of any other course of the study of any other purpose.

ROSHNI THUKRAL
1501050
(PGDM 2015-17)

INDEX
PARTICULARS

PAGE NO.

CHAPTER I : - INTRODUCTION

Introduction to Banking Industry


o
o
o
o

2 15

History of Banking
Banking Institutions
Functioning of a Bank
Role of Banking

Introduction to Cooperative Banks


o
o
o
o
o
o

2 38

16 38

Features of Cooperative Banks


Cooperative Movement in India . A Historical Perspective
Cooperative Banking in India
Types of a Co-operative Bank
Financial Sector Reforms and Credit Cooperatives
Banking Sector Reforms and Urban Cooperative Banks

CHAPTER II : - INTRODUCTION TO PCCB

40 56

Introduction to State Level organization


42 44
Profile of The Patiala Central Cooperative Bank
44 56
o
o
o
o
o
o

Name of Departments
Various Branches of PCCB
Mission of the Bank:
Objectives of Bank
Technology Used In Bank
Vision

CHAPTER III : - RESERCH METHODOLOGY

58 59

Definition
58
Research Design
Objective of Study
Collection of Data
Limitations of Study

58
59
59
59

CHAPTER -- IV: -ANALYSIS OF LOAN PROCEDURE & SCHEMES 61120

Definition of Loan
61
Importance of Loans in Today's Life
What is a Procedure?
63
Importance of Procedure Manuals
Loan Procedure
68 73
Loan Schemes
74 - 120

61 62
63 68

CHAPTER V : - FINDINGS AND CONCLUSION


CHAPTER VI : - RECOMMENDATIONS
BIBLIOGRAPHY

128-129

122-123
125-126

CHAPTER II
INTRODUCTION TO
THE PATIALA CENTRAL
COOPERATIVE BANK LIMITED
Introduction to State Level organization

The Punjab State Cooperative Bank was established on 31st August, 1949 at Shimla
vide registration No. 720 has a principle financing institution of the cooperative
movement in Punjab. In 1951 its Head Office was shifted to Jalandhar from where it
moved in 1963 to its present building at Chandigarh. In the cooperative Banking
structure, the position of the Punjab State Cooperative Bank is extremely important as
the whole credit system revolves around it. It has 3 Divisional Offices at Amritsar,
Bhatinda and Jalandhar. It has 19 branches and 3 extensions counters operating in the
city of Chandigarh. Besides this, there are 19 District Central Cooperative Banks
having 783 branches and 16 extension counters in the State of Punjab affiliated with
it. The bank was established to help to provide timely and adequate flow of credit to
the farmers for agriculture and allied activities through PACS.

Organizational Structure
The bank operates in the city of Chandigarh having 19 branches and 3 extensions
Counters. It has 3 Divisional Offices in Punjab at Amritsar, Jalandhar & Bathinda.
The organizational structure is as under:-

Organizational Structure

So State co-operative banks are a federation of central co-operative banks and act as a
watchdog of the co-operative banking structure in the state. Its funds are obtained
from share capital, deposits, loans and overdrafts from the Reserve Bank of India.
State co-operative banks lend money to central co-operative banks and primary
societies and not directly to farmers.

Expectation of the bank from the public for enhancing its effectiveness and
Efficiency:The Bank expects that the general public should take maximum benefits of the
services offered by it. The bank expects from the public that they should keep their
surplus money in the shape of deposits with the Bank and take maximum benefits of
various loan schemes of the Bank. The bank also expects that public should repay the
loans taken by it timely so that the bank may be able to channelize the same. It will be
in the interest of the public also.
Arrangements and methods made for seeking public
participation/contribution:The Bank has an elected Board of Directors which is the main governing body of the
bank. District and State level Technical Committees are established to fix the scales of
finance of various crops. Customer meets Annual General Body meeting, Annual
Cooperative Week celebrations during the month of November every year.
Mechanism available for monitoring the services delivery and public grievances
resolution:The Bank is governed by an elected Board of Directors which regularly monitors the
services delivery system. The Bank is regulated and inspected by Reserve Bank of
India, NABARD and State Govt. There is a statutory audit system in the Bank by the
Auditors, under the control of Chief Auditor, Cooperative Societies, Punjab. To
properly handle the public grievances/complaints, a separate Vigilance Cell has been
created at the Head Office of the Bank.

THE PATIALA CENTRAL CO-OPERATIVE


BANK LTD.
HEAD OFFICE, PATIALA
Central co-operative banks are the federations of primary credit societies in a district
and are of two types those having a membership of primary societies only and those
having a membership of societies as well as individuals. The funds of the bank consist
of share capital, deposits, loans and overdrafts from state co-operative banks and joint
stocks. These banks finance member societies within the limits of the borrowing
capacity of societies. The profile of Patiala Central Cooperative bank is as under:

Name of society- The Patiala Central Co-Operative Bank Ltd.


Registration No.& Date- No. 772, 28th September 1949
Area Of OperationAs per bye-law no. 3, the object of the Bank is to
Facilitate the operation of. The affiliated Co-operative societies by.
Providing Banking and credit facilities to its members as convenient and easy
terms are possible.

Encouraging thrift and saving amongst its members by offering suitable


facilities.
Making arrangement for supervision and inspection of its affiliated Cooperative Societies.
Undertaking such measures as are conductive to the spread of Co-operative
education and training.

Under the Indian Co-operative Societies Act-ii of 1912 the P.C.C.B with registration
no. 776 on 28-09-1949 by the registrar co-operative. Co-operative Societies PEPSU
although the old
bylaws do not mention that area of operation of the Bank. The copy of the application
submitted for its registration shows Patiala and Sangrur district as area of operation of
the Bank. With the creation of new district of Mohali , Dera Bassi block transferred
to that district. There are 8 Blocks Patiala, Bhunerheri, Samana, Patran, Nabha,
Rajpura, Ghanour and Sanour. There are 4 Sub-divisions namely Patiala, Samana,
Nabha and Rajpura.
Management and Organizational Structure
As per bylaws No. 28 the Board of Directors shall be constituted as under

Three Directors to be nominated by Govt. so long as the Govt. is member.


Eight Directors to be elected out of members Co-operative Marketing cum
processing Societies. One Director to be elected out of member industrial Cooperative societies. In case, The No. of these societies exceeds fifty-one.
Directors to be elected out of the remaining Co-operatives societies.
None of elected Directors has incurred any disqualification of director so far
and there is no Director who continuously remained absent in three
consecutive meeting of Board of Directors.

Sr.

Name of Directors

Designation

Balraj singh chauhan

Chairman

Bikramjit singh

Vice Chairman

Harkishan singh

Director

Umar Ranjit Singh

Director

Bharpur Singh

Director

Jasbir Singh Bajwa

Director

Joginder Singh

Director

Jaspal Singh

Director

Name of Departments
There are various sections / departments which are working in the Bank. Here we tell
us about those departments / sections which play important role in Banking. We tell
about his Head of Department, its functions & number of members working in the
departments.

Functions of Various Departments

To maintain monthly statements etc; like as LIC, Income Tax, GSLI


Grievance of public & branches.
Yearly statements.
Master policy of holder such as EDLT, GI, and House Loan.
Statements of NABARD.
House Loan
To issue charge sheets of employees & maintain it.
To maintain Misc. files.
To maintain several records (with service book of employees)
Transfer of employees.
Increment concerned with employees.
Pass T.A. D.A. bill of employees
Salary of employees maintained.

Fuctions of Account Section

The Misc. department reconciled the A/c of all the branches.


That department issues the drafts of local, state level /aims.
Furniture fixture.
This department keeps up the current A/C related with commercial bank.
It helps to maintain sundry A/C.
Maintain the current A/C with P.S.C.B.
Passing the M.C.L. of societies.
Sanctioned of cash credit limits of societies.
Maintenance of receipt and dispatch register.

Number of Persons Working Under above Section

In this section number of persons working is ten.


1 Senior Manager
2 Manager
2 Assistant Manager
5 Clerks

Functions of Loan Department

Sanction all types of loans; like as Consumer Composite /integrated Vehicle


Loan
Computer loan only for staff member

Sanction all types of limits; like as cash credit trader


Cash credit farmers
Loan against property
Rural godown
Mini dairy
Mai Bhago scheme
Renewal of cash credit limits.
Physical verification done before sanctions the
limits or loans.
Vehicle loan two wheeler, three wheeler, &
S.R.T.O.

Maintain statements for refinance &send to NABARD.

Functions of State Section

Planning
Renewing
Compiling
Achievements (for net result of the bank)
Next year forecasting

Number of Persons Working Under are


There are seven persons working in stat section

1 Senior Manager
1 Manager
2 Assistant Manager

1 Accountant
1 Clerk
1 Typist

Account and Finance Department


Keeping of account and maintaining books of accounts, preparing profits and loss
accounts, preparing budgets, pay rolls, recording receipts and payments, preparing
statement of assets and liabilities etc. are office activities of specialized nature. All
these are office work and performed by this special office.

Miscellaneous Activities

Office Time: - The P.C.C.B. has fixed the timing for all the employees the
timing of this company is 10a.m. To 5p.m. The recorded of the arrival &
departure was recorded through Attendance register company maintenance the
attendance registers. All the employees come at 10a.m. Entered the time in the
Attendance register in the first column and at time of lunch. The entire
employee entered. The departure time for lunch at 2p.m. When they come
after lunch they will entered the arrival time 2.30p.m. Than duty was complete
they will entered the departure time 5.00p.m. And also entered the total
working hours in the full day. There is no extra system for recording the time.

Log Book : -All the vehicles of the company having logbook. Each vehicle
has own separate logbook. All the records of this vehicle were kept in this
logbook. The perform shows that, how much kilometer are to be used by this
log book the person who used the vehicle fill this log book and signed on also
fill that for what purpose. The vehicle was used.

FACILITIES FOR STAFF


The following facility is available to staff members.

House Loan facility at subsidiary rate.


Scooter loan/ motorcycle/ car loan at subsidiary rate.
Festival loan.
Medical loan
LTC Loan (Loan Traveling Concession)
DA (daily allowance)
TA (traveling allowance)

Various Branches of PCCB


A part from its head office at Patiala, The Bank has been in the services of the people
through a network of its 43 branches spread over the district of Patiala. 16 out of the
43 Branches of the Bank are working at the focal points a scheme started by Govt.
of Punjab.
Name of Branches

Sr.

Name of Branches

Agoul

Arya Samaj

Bhupinder Nagar

Babbarpur

Bhadson

Banur

Basantpura

Balbera

Bhunerheri

10

B.N.Khalsa

11

Daun Kalan

12

Dandrala Dhindsa

13

Dakala

14

Devigarh

15

Ghanour

16

Ghagga

17

Gulzarpura

18

Galwatti

19

Gajju Majra

20

Gurbax Colony

21

Gajewas

22

Jand Mangouli

23

Khera Gajju

24

Kamalpur

25

Lang

26

Massingan

27

The Mall, Patiala

28

Mandouli

29

Nabha (M)

30

Nabha (E)

31

New Anaj Mandi

32

Patran

33

Sirhind Road

34

Pabri

35

Rakhra

36

Rajpura

37

Sanour

38

Samana

39

Shatrana

40

Sultanpura

41

Shambhu Kalan

42

Tohra

43

Top Khanna Moor

Mission of the Bank:


Promotion and sustenance of economic interest and providing easy finance, cost
effectives and quality banking services to customers and PACS.

Objectives of the Bank:


The objects for which the Bank is established are as under:1. To serve as a balancing center for cooperative societies (hereinafter called the
society/societies) in the State of Punjab registered under the Act for the time being in
force.
2. To promote the economic interest of the members of the Bank and Cooperative
Societies in the State in accordance with cooperative principles and to facilitate the
development and funding of any Cooperative Society registered under the said Act.
3. To establish and support or aid in the establishment of and support to association,
institutions, funds, trusts and convenience designed to benefit the employees or exemployees of the Bank or the dependents or connections of such persons to grant
pensions and allowances and make payment toward insurance.
4. To provide long term loan for the maximum period of 15 years to the individuals,
Coop. House Building Societies, Federation of Coop. House Building Societies and
members of Group Housing Societies for purchase of house or construction thereof by
enrolling member/nominal members. To carry on banking and credit business not
repugnant to the provisions of the Act and the Rules framed there under for the time
being in force and in particular to provide credit facilities to the members. Providing
Long Term Loan for the maximum period of 15 years to individuals, Coop. House

Building Societies and members of Group Housing Societies for purchase of house or
construction thereof by enrolling members/nominal members.
5. To adopt such measures as are conducive to the spread of cooperative education
and training.
6. To promote and develop Cooperative Societies in the State.
7. To do all such other things as are incidental or conducive to the promotion or
advancement or objects of the Bank.
8. To solicit or procure insurance business as a Corporate Agent

Technology Used In Bank


Patiala Central Co-Operative Bank Enhances Its Efficiency By Using Flexcube
Rolling out Flexcube core banking technology , powered by Oracle Database and
Oracle Real Application Clusters, Punjab State Co-operative Bank (PSCB) is about
to conduct an operation on deployment of the core banking system across its all 800
branches of the 19 district central co-operative banks, according to Indian fintech
vendor I-flex . I-flex subsidiary Flexcel will deploy, host and manage the core
banking system. At present, the technology has been successfully deployed in about
40 branches, and the next 200 locations are awaiting their turn.
The program of deployment was worked out to improve transaction processing and to
provide online, real-time banking to accounts from any of the 800 bank branches in
the network. Plus it will help PSCB to set the fixed standardization of products and
services to customers.
PS Sidhu, MD, Punjab State Co-operative Bank, says: "We selected Flexcube, Oracle
Database and Oracle Financial Services On Demand to enhance our efficiency by
replacing manual processes, maintain the customer intimacy we have created over the
years, and develop competitive differentiation because we expect the market to be
increasingly demanding."
One month before i-flex got a consent of both shareholders and regulatory body sides
to change the company name to Oracle Financial Services Limited. I-flex explained
that the new name signs its "close strategic and operational alignment" with parent
company Oracle, which holds an 81% stake in its business.
VISION STATEMENTS
Year

Vision Statements

1931-1980 To concentrate on providing funds at low rate of


interest to farmers to protect them from the fund provided by
GREEDY SAHUKARS at high rate of interests
1980-2009 To concentrate on all the sectors of the society for
providing and acquiring funds. This can be done by developing
competitive skills to compete with other private and
nationalized banks
2010 onwards To concentrate mainly on industrial sector for
application and allocation of banks funds.

CHAPTER III
RESEARCH METHODOLOGY

Research methodology
Research is composed of two syllables, a prefix re and a verb
search. Re means again, anew, over again. Search means to
examine closely and carefully, to test and try, to probe. The two
words form a noun to describe a careful and systematic study in
some field of knowledge, undertaken to establish facts or principles.
Research is an organized and systematic way of finding answers to
questions.
Redman and Mory defines research as a Systematized effort to gain new
knowledge. It may be noted, in the planning and development, that the significance
of research lies in its quality and not in quantity. Research methodology is the
specification of method of accruing the information needed to structure or solve at
hand. It is not concerned to decision of the fact, but also building up to data
knowledge and to discover the new facts involved through the process of dynamic
change in the society.

Research Design
Research design is a pattern or an outline of research project working. It is a statement
of essentials elements of a study, those that provide the basic guidelines for the details
of the project. Further a research design is an arrangement of condition for collection
and analysis of data in manner that aims to combine relevance to the research purpose
with economy in procedure. Research design stands for advance planning of the
methods to be adopted for collecting the relevant data and the techniques to be used in
their analysis, keeping in view of the objectives of the research.
Under this project, Research design carried out was exploratory in nature

Objective of Study

To get information about a cooperative bank & its functions etc.


To know the structure and various schemes of loans provided by The Central

Cooperative Bank Head Office Patiala .

To know the purpose of granting various types of loans by the bank according
to

the various categories of customers.

To know the process of granting loans by the bank.

Collection of Data
Collection of data is most significant stage of every research. There are two types
sources from where data is collected . These are : I) Primary Sources II) Secondary
sources
Data has been collected both primary as well as secondary sources as described
below:

Primary Sources

The primary sources of data were circulars relating to the bank and personal
observation.

Secondary Sources

The secondary sources of the data were the information about the PATIALA
CENTRAL CO-OPERATIVE BANK LTD. and the banks profile which includes
functions of bank and various schemes of granting loans etc. These helped in gaining
knowledge about the Bank.

Limitations of Study

Lack of personal interest of employees to provide information and adequate


time.
Some employees were hesitant in providing complete information.

CHAPTER IV
ANALYSIS OF LOAN PROCEDURE
AND
LOAN SCHEMES

Definition of Loan
An arrangement in which a lender gives money or property to a borrower, and the
borrower agrees to return the property or repay the money, usually along with interest,
at some future point(s) in time. Usually, there is a predetermined time for repaying a
loan, and generally the lender has to bear the risk that the borrower may not repay a
loan (though modern capital markets have developed many ways of managing this
risk).

Importance of Loans in Today's Life


Everyone needs money at every stage of their life. Sometimes it so happens that they
have keen desire to purchase their favorite stuff but they are incapable to purchase due
to shortage of money.
Here lies a question that a person who does not have a good amount of money at
particular time has no right to see dreams? Is he not authorized to fulfill his desires on

time? Should he stop dreaming? No, because there is solution for these queries. Loans
are available for these purposes only.
Loans are provided to people for such critical circumstances which may occur at any
time. In anyone's life a situation may come when all of sudden you require cash. A
moment when you do not want to borrow cash from your relatives.
There may occur any kind of emergency when you need huge amount of money.
There are various types of loans like home loans, personal loans, student loan,
business loan etc. You can take any type of loan you need. For each and every kind of
need, loans are available.
Home loans are available for general home purposes like buying a luxurious car,
going for a holiday trip, educational purpose, home improvement etc. Many of your
desires can be fulfilled by this loan.
Personal loans are available for personal requirements like wedding ceremony,
purchasing a home etc. Student loan as it itself suggest is that it is provided basically
to students for higher education. Students who want to study more but can not afford
can get apply for such loans and continue their studies.
To start a new business you require a huge amount of money. A person willing to
setup a business may not have that much cash which can meet out his requirements.
For this business loans are available. You can get business loans to start and well
establish a new business in market.
Whatever may be the kind of loan, all have full fledged facilities. All kind of loans
have their own importance. Above all, need of money explains the importance of loan.
Appling for loan is very easy. Apply for that loan whichever is needed to you. But
before applying you should go through different lender's policies and apply for that
lender which is beneficial for you.
Different lenders have different policies. If you get loan for long term with low rate of
interest then it is beneficial for you. Due to competition, lenders are trying their best
to attract people by providing different schemes which in turn is good for people. And
cooperative bank is also one of them.

What is a Procedure?
A procedure is a specified series of actions or operations which have to be executed
in the same manner in order to always obtain the same result under the same
circumstances (for example, emergency procedures). Less precisely speaking, this
word can indicate a sequence of tasks, steps, decisions, calculations and processes,
that when undertaken in the sequence laid down produces the described result,
product or outcome. A procedure usually induces a change.

Importance of Procedure Manuals

One of the worst case scenarios of office problems involves a very important job that
cannot be completed by the support staff because of a lack of information on
procedures. Nearly every company prepares job descriptions, but most neglect
efficient, exact
and up-to-date procedures manuals. A job description entails. A procedures manual
gives a detailed and informative guide to how the job is done and enables someone to
do the job in an emergency. Henrik Ibsen once said, "A community is like a ship;
everyone ought to be prepared to take the helm." Likewise, an office - people should
be able to pitch in and get the job done. This is possible only if they are provided with
the proper instructions and materials.
Every job entails a certain sequence of paperwork, routine tasks and contacts. For
example, someone might be in charge of travel arrangements. A job description would
state that the job entails making both domestic and foreign travel arrangements and
processing invoices for this. A procedures manual would give the names and phone
numbers of various travel agencies used for the firm, the best people to contact, how
to process the invoices by explaining the forms and what department handles them. If
the person in charge of travel arrangements is out of the office, someone else can open
the procedures manual and follow the directions to do the job.
Managers should see that every support staff employee in his or her department
prepares a procedures manual for each job. At the beginning, the manager should
meet with each employee individually and discuss the preparation of the manual so
that its function is fully understood. An outline of what is expected should be prepared
and given to each employee to follow. The outline should cover:
1. What - A description of the task.
2. When - How often it is done.
3. Who - What people are involved in completing the task.
4. How To - Sequence of steps to complete the job. Phone numbers, addresses, chain
of command, forms or materials needed (and where they are kept), potential problems
and solutions based on experience. If office machines are involved (computers or
word processors), a description of how they are operated for this particular job (i.e. if
disks are used, where information is stored, how to retrieve the information, electronic
mail, etc.). If a computer sequence is followed to complete forms or reports for the
task, copies of each screen used should be made and placed in the procedures manual
in the proper order. A "dummy" of each page should be filled out so that it can be
easily followed.

Important details
One of the most important aspects of a procedures manual is that it is detailed
and gives all the necessary information to get the job done in the quickest way
possible. If persons, agencies or companies outside your company have to be
contacted to complete a job, the procedures manual should give specific
names, departments, addresses and phone numbers as well as a brief

description of what each does, how long it will take, what you need from them
and what they need from you.
Another important part of the manual is making sure that it is up to date.
Outdated information will only confuse someone and will not get the job done.
All employees should be instructed to check the procedures manual they have
prepared at least once a month to see if phone numbers, names or directions
need updating. Both the employee and manager should have copies that are
accessible to others.
One of the problems in every office involves employees who are reluctant to,
or refuse to, share information because they feel it will diminish their
importance. Keeping the job "complicated" and being the only one able to do
it gives this type of person a sense of job security and self-esteem. They do not
want someone else to do their job at all, no less do it well. Unfortunately, this
type of thinking does much more harm than good. A good manager must be
able to communicate to these employees that a procedures manual is vital and
must closely monitor the employee to see that a manual is prepared and is
viable. Employee resistance to the idea of doing a procedures manual is to be
expected. Some people will be afraid that their writing skills are inadequate
and they will be unable to do their part properly. These employees should be
helped as much as possible and encouraged to do the best they can. Their
contributions can be polished later on. Usually, resistance is greatest among
those who know they have more time on their hands than the job entails.
These people will usually denigrate the whole idea of writing down what they
do in detail, knowing that keeping the details vague makes the job sound a lot
busier than it really is. Some tasks can take 10 to 15 minutes if you know
exactly what to do and might take most of the day for the uninitiated to
muddle through and try to get it right when the usual person in charge is out.
People do get sick, quit or leave for a variety of reasons - often quite suddenly.
A procedures manual is not a panacea for all office management problems, but
it certainly helps.
A procedures manual also allows a manager to see what people are doing and
estimate how long certain duties take. What is vaguely written in a job
description as "handle board room reservations" could take from five minutes
to hours depending on what is involved. A procedures manual would indicate
whether the person in charge simply keeps a reservation book noting the
names, dates and times or arranges for audio/video equipment, extra seating,
coffee or other beverages and refreshments, provides writing tablets and pens
or takes minutes as part of the job, including contacting maintenance people to
see that the room is cleaned before and after and arranging with the
receptionist to make sure the names of all outsiders are given to her and guests
are properly directed to the location of the meeting. Obviously, there is a big
difference in the amount of time expended, depending on what steps are
involved. Detailing the steps involved would enable anyone to take care of the
job without confusion and problems.
Hiring decisions
Managers can, therefore, make decisions about consolidating certain jobs
when there is an obvious lack of work in some jobs and too much in others,
can make hiring decisions as to whether or not extra staffing is required or
whether people can be let go. If you ask an employee what a job entails and
she or he says, "I do this, this and this," you have very little idea of what time

and effort is involved unless you have done the job yourself (probably
unlikely), or have it written down in a procedures manual.
Another advantage of the procedures manual is that a manager can see
whether or not an employee is suited to a certain position. If the employee
seems to go about tasks in the most complicated, difficult manner, obviously
retraining is necessary or the employee should not be in the job. A manager
should be able to see, by the step outlined in the manual, whether the job is
being done as efficiently as possible.
A procedures manual can help avoid confusion when someone has to step in
and do a task that is not normally part of his or her job. This enables the office
to run much more smoothly and gives managers a "feel" for what is going on
in their departments. It also enables the manager to feel more confident about
being in charge because he or she knows precisely what is going on in the
department. Most employees will welcome the manual when they are called
upon to fill in or help out because they will at least have some idea of what is
to be done and how to do it. A procedures manual is a simple office tool that
can save a lot of time and avoid a lot of problems.

Loan Procedure
The loan to get passed, it has passed through many hands as shown in the following
figure.

Inquires

Information

Procedure for getting a loan

I.

Customer
Under the above procedure customer means the per who wants to take a loan.
Custer may be a farmer , student, employee of govt. or semi govt. or any
institution approved by the board of directors of the bank, individuals ,
companies, trust, firm, cooperative Societies etc.

II.

Reception
Here a person (customer) inquires about the loan rates and other prerequisites
that are to be submitted. He is provided this information by the clerk at the
reception. For example a person want to take a vehicle loan . At this step he is
get the information about the amount sanction criteria, interest rate, period of
time, mode of loan disbursement, mode of repayment, perquisite documents
etc.

III.

Submission of documents:
After getting the information customer submit the required document to bank
facility. For example: to take a House Loan he submitted various types of
documents like:
1.
2.
3.
4.
5.

Demand Pronote note (D.P.. note)


Two latest attested passport size photographs of borrower
Proof of Residence
Source of Finance for own contribution
Copy of approved drawing of the proposed dwelling unit to be
constructed/purchased from Sarpanch/Numberdar.
6. Agreement of sale deed.
7. Details of cost/estimate from approved Architecture/valuer/Engineer of the
house to be purchased/constructed/ renovated/addition to made.
8. Non encumbrance certificate.
9. Latest jamabandi and girdawri.
10. Certificate of ownership of land/property situated within Red Line of the
village from the Sarpanch/Numberdar/Patwari
11. The borrower shall be also required to submit collateral security @100%of
loan amount etc.
12. To take a loan borrower firstly required to take nominal member ship of bank.
Only after fulfillment and submission of all documents which are required
according to take various types of loans, the process is started actually.
VI. Credit rating:
Based on the documents submitted by the customer, the credit rating of the
customer is done i.e. how much the loan amount should be granted to the
customer is calculated. This is done as follows.
1. First the total value of the customers assets is calculated. For example if
loan is on a stock plus if he has provided the papers of his business land, then
in this case his credit will be calculated as a sum of the value of both these
assets.
i.e. total value = value of stock + value of land

2. Now, according to the rules of bank some percentage of the value of these
assets can only be given as loan. This percentage varies for different types of
loans and based on it the sanctioned loan amount is calculated.
V.

Inspection:
After having calculated the credit and the amount that can be sanctioned for
loan, the file is forwarded for inspection. Here, the officer verifies the work
done by the clerk at the credit rating desk. Moreover, he checks the banks
database to see if the loan taker has any previous obligations which are
remaining to be met (if he is an old customer). After the satisfaction with all
the parameters, he hands over the file to the loan manager.

VI. Loan Manager:


At this step , the file of customer reexamined by the loan manager. If the loan
is consumer loan then it is directly granted by branch manager . But if the loan
is personal loan or vehicle loan or any other type of loan then it is granted by
senior manager or district manager. The powers of granting different types
loans of different mangers are as under:

Branch Manager: Branch Manager has power only to grant the consumer
loan. The maximum amount is granted up to 100000 Rs./-.
Senior Manager: Senior Manger has power to grant a loan up to amount
200000 Rs./- only.
District Manager : District Manager can grant a loan from 200000 Rs./- to
500000 Rs./- only
Board of Directors: If the loan amount is greater than 500000 Rs./- then it is
granted by the board of directors of the Patiala Central Cooperative Bank.

So according to different types and different amounts of loans, these are


granted by above parties. At this stage loan granting manager recheck all the
documents. Loan manager pass the loan if customer fulfill all requirements.
But if there is any thing which is unclear or insufficiency in the documents, he
has power to reject the loan application. But he is also liable to give specific
reason to the customer about the rejection of loan.
VII. Meeting:
If the amount of loan is grater than 5 laces then a meeting is conducted
between board of Directors of the bank After having examined the file, the file
is then put forward before the Chairman and Managing Director (MD) in a
meeting. This file is then cross examined. If all the members of top
management are mutually consent then the application of loan is ready for
disbursement of loan amount.
VIII. Insurance:

Before issuing the loan amount or opening of a/c for loan, the customer is
required to get insurance on the thing on which he wishes to take loan. This is
done by bank with the help of United India (UI) Insurance Company.
Moreover, if any other thing is mortgage for taking loan, then the insurance is
taken on that particular thing also. This is explained in detail in the coming
sections.
IX. Giving away of Loan:
After paying the insurance amount, the loan amount or account is handed over
to the customer. Before the disbursement of loan amount to customer firstly
bank require becoming a nominal member of bank, then loan amount is paid to
the customer.
In some type of loan schemes the amount of loan is paid into installments.
Like in case of Rural Housing Loan amount is paid into two installments:a. 1st installment at the time of starting

50%

construction up to plinth level.


b. 2nd installment after completion up to

50%

roof level.
In case Urban Housing Loan amount of loan is disbursed into three
installments:
a. For purchase of plot 50%
b. Up to roof level 25%
c. After roof level
25%
So above are the various stages into loan procedure adopted The Patiala
Central Cooperative Bank. Any customer can easily get a loan to fulfill his/her
various requirements and get it fastly as per as possible.

Loan Schemes
* Scheme for Financing Rural Housing *
Preamble:- With a view to provide housing facilities to the masses which is a basic
need of human beings, the GOI and State Govt. are attaching utmost importance to the
financing of housing sector. Several housing schemes for this are in operation. With a
view to supplement these schemes, it has been decided by the Coop. Bank to start
housing finance for acquisition, construction, repair/alteration etc. This scheme has
particularly been designed for rural people, where other financing institutions are
reluctant to advance. The scheme shall be called the Scheme for Financing Rural

Housing and is applicable to individual/members of house building cooperative


societies in the state of Punjab and Chandigarh (U.T.)
Eligible Borrower: - 1) Individuals
2) Cooperative Housing Societies
Purpose of Loan: - Loan shall be advanced under the scheme for purchase of built up
house, construction of a new house or repair/ renovation/addition/alteration of
existing house in rural areas.
Ceiling on the cost: - The loan for a dwelling unit may not exceed Rs.15.00 lacs. In
case land is being acquired the cost of land may be reckoned as margin money,
otherwise cost of land should not be included in the project cost
Quantum of Bank loan for Individual: - The quantum of loan shall depend upon
repaying capacity of the borrowers, subject to 85% of cost of construction or value of
property to be purchased.
For construction/purchase of new House
a. Maximum loan Rs.15.00 lacs
b. Margin Money 15%
Repayment period Up to 15 years in monthly/half yearly installments. Due date
shall be 30th June and 31st December every year.
For Renovation/Repair/Addition/Alteration:
a. Maximum loan Rs.5 lacs (for repair/ addition /alteration of House)
b. Margin money 15%
c. Repayment period 10 years in monthly/half yearly installments.
Loan eligibility shall be calculated on the basis of repayment capacity of the borrower.
The repaying capacity shall be determined on the basis of land holding and other
known sources of income and commitments/subsistence towards his family. A
reasonable installment to income ratio i.e. normally upto 35% of the gross income can
be taken as repayment capacity of the borrower. Income of the co-applicant can also
be considered for loan eligibility.
Period of Loans: - The maximum period of loan shall be upto 15 years and loan shall
be repayable in equated monthly/half yearly installments. The first installment shall
become due after expiry of 9 months from the date of drawl of first installment in case
of construction and whereas in case of purchase of built up house, it shall start after
expiry of 3 months from the date of purchase.
Rate of Interest: - At present rate of Rural Housing is 11% and further it shall be
determined by financing bank from time to time and debited to loan account. Interest

Is charged as contract made with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default amount for the default
period. 0.5% concession is allowed to women.
Security: - The security of the loan shall be first mortgage charge on the house
property to be financed by the bank by way of registered regular mortgage. In
addition to it collateral security shall be taken @ 100% of the loan amount in the form
of agriculture land. Value of agriculture land as per norms fixed by the District
Collector from time to time should be taken into consideration. In case of employees
of the Govt., semi govt., Boards, Corporation, etc., constructing house within rural
areas, loan can be advanced on primary security i.e. mortgage of house to be financed,
along with two good sureties and undertaking under section 39 of Punjab Cooperative
Societies Act., 1961.
Sanction and disbursement of Loan: - The loan shall be sanctioned after it is
ascertained that the applicant fulfils all the requirements and enjoys reputation as a
good pay master. For construction loan, the borrower should be in possession of plot
with unquestionable and indisputable title. In case of built up house, the payment shall
be made @ 75% of total value of the house/Loan sanctioned. Payment shall, however,
be made to third party in lump sum after getting margin money from the borrower and
remaining 25% shall be released after obtaining Mortgage Deed in favour of the
Bank. For construction of house, loan shall be disbursed in 2 installments, which is as
under:c. 1st installment at the time of starting

50%

construction up to plinth level.


d. 2nd installment after completion up to

50%

roof level.
2nd installment shall be disbursed after ensuring proper utilization of previous
installment.
Processing Fee & Other Charges: - Processing Fees and other charges @ 0.25% of
loan amount shall be charged
Documentation & general requirements: - Following documents are required for
financing under Rural Housing Scheme
1.
2.
3.
4.
5.
6.
7.

Application form
Loan agreement
D. P. Note
Two latest attested passport size photographs of the borrowers.
Proof of residence.
Source of Finance for own contribution.
Copy of approved drawing of the proposed dwelling unit to be
constructed/purchased from Sarpanch / Numberdar.
8. Agreement of sale deed.

9. Details of cost/estimate from approved Architecture/ Valuer/ Engineer of the


house to be purchased/ constructed /renovated /addition to be made.
10. Non-encumbrance certificate.
11. Latest Jamabandi and Girdawari.
12. Certificate of ownership of land/property situated within Red Line (i.e. Phirni)
of the village from the Sarpanch/Numberdar/Partwari.
13. The borrower shall mortgage his existing property : to be
constructed/purchased in favour of the bank for the full value of loan.
14. The borrower shall be required to submit collateral security @ 100% of the
loan amount.
Additional Documents from Employees:
i.
ii.
iii.
iv.

Salary Certificate.
Undertaking U/S 39.
Post dated Cheques.
Completion certificate.

* Scheme for Urban Housing Loan *


Short title Extent and Commencement
a. This scheme may be called Urban Housing Loan Scheme to individual and
members of house Building Societies by The Punjab State Cooperative
Bank/Central Coop .Bank (s) in the State of Punjab.
b. The scheme shall be implemented through the branches of the PSCB/Central
Cooperative banks concerned and shall be limited to urban areas falling in the
area of operation of the lending Bank.
It shall come into force from the date as the Registrar Coop. Societies, Punjab
Chandigarh decides.
Purpose: - Loan shall be advanced for the purchase of plot, purchase of built up
house, construction of house or repair, renovation, additions, alteration, etc. in the
existing house. Loans shall also be given for acquiring a plot, flat, house in an existing
or proposed Cooperative House Building Society and approved scheme of PUDA,
House fed, Improvement Trust or any other Govt. Agency.
Loan can also be advanced for take over of an existing loan advanced by any other
bank/financial institution subject to the condition that the loan account should have
remained in the standard category of assets for at least last 2 years in the previous
financial institution
Eligibility: - An individual residing in the area of operation of the Bank may apply
for the loan in his individual name or along with another person being joint owner of
the land/property as co-applicant. The applicant and co-applicant, if any will be
enrolled as nominal members of the bank under the Act, Rules and Bye Laws.

Note: The Borrower should not have defaulted in any other loan.
The applicant shall be eligible for a total house building loan not exceeding 75% of
the total cost of house (cost of construction + cost of plot, if plot is to be purchased)
and the loan out of it for purchase of plot will not exceed 50% of the total loan
sanctioned. The remaining, exceeding or up to 50% shall be utilized for construction
of house thereon.
The employees of the Punjab State Cooperative Bank or Central Cooperative Banks
who have already availed house loan under Govt. or Bank Scheme from the Punjab
State Coop. Bank or Central Cooperative Banks can also get loan under the scheme
subject to maximum of Rs.25 lacks under both house loan scheme. It will be further
subject to the repaying capacity of the employee in accordance with their last salary
statement. Further this loan to employee will be against second charge on the said
property.
Quantum of Loan: - The quantum of loan will depend upon the repayment capacity
of applicant to be calculated by the bank as under :
21 yrs. To 45 yrs of age.
48 times of the net monthly income (NMI) or 4 times of Net Annual Income (NAI)
Above 45 years
36 times of Net Monthly Income (NMI) or 3 Times of Net Annual Income of the
spouse or family member can be considered if spouse or family member is coapplicant or guarantor. Maximum loan amount for construction of house or purchase
of house/flat, purchase of plot + construction thereon under this scheme is Rs.25 lacks
or 75% of total cost of construction, purchase of house (cost of construction + cost of
plot, if plot is to be purchased), whichever is less.
The loan for purchase of plot will not exceed 50% of the total loan sanctioned.
For repair/renovation maximum amount of loan shall be Rs.5 lacks.
For addition/alterations in existing house, maximum loan amount shall be Rs.10 lacks.
Interest: - At present rate of Urban Housing is 11% and further it shall be determined
by financing bank from time to time and debited to loan account. Interest
Is charged as contract made with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default amount for the default
period. 0.5% concession is allowed to women.
Period of Loan/ Repayment of Loan: - Maximum period (including moratorium
period) shall be 15 years or attaining the age of 65 years whichever is earlier. In case
of repair/renovation /addition/alteration loan cases maximum period shall be 10 years.

Repayment of the loan shall, however, be in monthly equated installment to be started


from 9 months after the first installment of loan disbursed. In case of the farmers
availing loan under this scheme, repayment of loan may be in half yearly installments
i.e. 30th June and 31st December every year.
Security: - Security for the loan is a first mortgage of the property to be financed
normally by way of deposit of original title deeds.
Disbursal of Loan: - The loan shall be disbursed after the property is technically
appraised, all legal documentation completed and borrower having invested own
contribution in full (own contribution is the total cost of proposed property Bank
loan).
In case of purchase of plot + construction, the disbursement shall be in 3 installments
as follows:For purchase of plot 50%
Up to roof level

25%

After roof level

25%

Loan will be disbursed at one go for purchase of a built up house. However, for
construction on pre-owned plot, the disbursement shall be in two installments.
1st Installment for construction after plinth level 50%
2nd Installment for construction of the building after roof level 50%
Loan for repair, additions, alterations and renovation shall be disbursed in two equal
installments. The second and subsequent installment of loan shall be disbursed only
after ensuring the utilization of previous installment to Banks satisfaction. Bank shall
not be bound to accept progress construction as assessed by builder.
Fee & Other Charges: - A processing fee @0.25% of the loan amount sanctioned
will be charged.
Documentation - Pre-sanction stage: 1. Identify proof.
2. Residential Proof.
3. Self attested recent passport size photographs of the applicant and co-applicant
(two).
4. Copy of Income-tax Return for the three years duly acknowledged by ITO
concerned.
5. Sources of Finance for own contribution.
6. Non-encumbrance certificate.
7. Search report & legal opinion along with photograph of the property.
8. Original title deed.
9. Spot Physical verification.

10. Purchase agreement of property.


11. Income Proof/J-Form.
12. Loan application Form
Post Sanction Stage
1.
2.
3.
4.
5.
6.

Loan agreement.
Demand Promissory Note.
Mortgage Deed
Letter of Lien and Set Off
Letter of Waiver
Letter of Guarantee

Employed applicants: - Undertaking from the employee under section 39 of Punjab


Cooperative Societies Act, 1961.
Insurance: - Comprehensive insurance in the joint names of the borrower and the
bank shall be made of the property mortgaged against fire, riots earthquake lighting
floods etc. Incase of default bank will be at liberty to get a policy renewed by debit to
house loan account of the borrower
Additional Documents in construction cases: a. Construction Plan approved by a competent authority.
b. Detailed Cost estimate from Registered Architect/ Civil Engineer.
c. A photocopy of registered title deeds or allotment letter (in case of member of
Cooperative House Building Societies
In purchase ofBuilt Up House cases.
a. Agreement of sale/sale deed/detailed cost estimate from approved engineer.
b. In case of allotment of flat/houses, photocopy of allotment letter and details of
balance payment, if any.
Disputes
If at any stage any dispute arises, it will be settled/referred under the Punjab
Cooperative Societies Act 1961.

* Personal Loan *
The Bank offers Personal Loan for various purposes such as meeting medical
expenses, renovation of residential accommodation, traveling, marriage etc.
Eligibility : - salaried employees of Punjab government, PSUs, Boards, Corporations,
Aided Schools/Colleges, Universities, Public Sector Banks, Premier Medical
Institutions, General Insurance Companies, Co-operative organizations in the state of
Punjab or any other organizations as approved by the Board of Directors of the
respective Bank etc.

Age: - Minimum 21 years and Maximum 57 years.


Service Tenure: - 1 year after the confirmation/regularization.
Loan Amount: - 12 Times of gross monthly salary or Rs. 2,00,000/- only ,
whichever is less.
Period of Loan: - Maximum- 5 years. Loan may be repaid in 36/48/60 Equated
Monthly Installments (EMI).
Rate of Interest: - 14% p.a.
Income: - Net income of the person should not be less than Rs.5,000/- p.m. in case of
salaried persons and Annual Income of not be less than Rs.60,000/- in case of others.
Repayment of Loan: - Loan is repayable in equated monthly installments in the form
of post-dated cheques. The 1st installment will start after one month. The Loan will be
repaid before retirement.
Security : - No collateral security is required, only two guarantor know to the bank.
Option to repay loan: - Borrower can make the part pre-payment of loan. No penalty
will be charged.
General: - No employee will be given this loan facility, which has defaulted in
repayment of loan under any other scheme.
* Consumer Durable Loan ( salary / Non Salary Earners) *
Scheme for Granting Loans to Individual Salary and non-salary earners by the state
and central cooperative banks for socio-economic needs

1. The bank may grant loans to individual salary earners and non-salary
earners holding saving bank account or current account with the bank for
purchase of consumer durables and meeting other socio-economic needs.
2. The loan should be repayable in monthly installments but the total
duration of loan should not exceed three years in any case.
3. The borrower should be enrolled as a nominal member of the Bank.
The Borrower should be required to produce 2 sureties who should also be
nominal members of the Bank.
4. In case of SALARY EARNERS, the amount of loan should not
exceed Rs.1.00 lac per borrower or 75% of the cost of article to be
purchased whichever is less, in accordance with the slabs fixed
hereunder:-

Total net emoluments upto Rs.5000/Amount = Rs.25000/-

- Loan

Total net emoluments from Rs.5001/- to Rs.7500/Amount = Rs.40000/-

- Loan

Total net emoluments from Rs.7501/- to Rs.10000/amount = Rs.50000/-

- Loan

Total net emoluments from Rs.10001/- to Rs.15000/- - Loan


amount = Rs.75000/Total net emoluments above Rs.15001/amount = Rs.100000/-

- Loan

In case of NON-SALARY EARNERS, the amount of loan should


not exceed Rs.50000/- per borrower or 75% of the cost of article to be
purchased in accordance with the slabs fixed hereunder:Half Yearly Income
a) Upto Rs.18000/-

Amount Loan
Rs.15000/-

a. From Rs.18001/- to Rs.27000/b. From Rs.27001/- to Rs.40000/-

Rs.25000/Rs.30000/-

c. More than Rs.40001/-

Rs.50000/-

5. The loan should be advanced for acquiring new assets only. Purchase
of second hand articles should not be financed in any case.
6. The bank should obtain salary certificate from the borrower. The
borrower himself should be responsible for the repayment of his loan.
However he should also produce a copy of authority letter addressed to the
bank and also an undertaking to the effect that in case borrower commits
default in repayment of his loan installments, then his salary or loan
amount due will be credited to his loan account till the bank directs to do
so. The bank shall inform the employer immediately after the sanction of
loan.
7. In case of default by the borrower, the bank will ask the employer of
the borrower to deposit the due amount by deducting from the salary of
the employee.
8. The borrower should give standing instruction to debit the amount of
installments or overdue installments together with interest due on that loan
every month to his saving bank account or current account as the case may

be.
9. The bank should also obtain the following documents from the
borrower :a.
b.
c.
d.

Salary certificate/proof of income


Loan agreement.
Demand Promissory Note
An authority letter from the borrower under Section 39 of
Punjab Cooperative Societies Act, 1961 for repayment of
loan in case the borrower fails o repay the loan.
e. An authority letter from the borrower to recovery the
installment/interest by debiting to saving/current account.
f. Letter of waiver.
g. Post dated cheques equal to number of installments should
be obtained from the borrower.
10. The bank should take original invoice from the dealer and then the
loan amount together with margin money should be paid through Bank
Draft directly to the dealer to avoid misutilisation of the loan.
11. The loan should be advanced against hypothecation of the asset/assets
acquired/to be acquired, if any.
12. At present rate of consumer loan is 14% and further it shall be
determined by financing bank from time to time and debited to loan
account. Interest is charged as contract made with the loanee. Penal
interest @ 2% over and above the normal rate shall be charged in case of
default, on the default amount for the default period. 0.5%concession is
allowed to women.

* Sehkari Education Loan scheme *


Education loan is granted for higher studies in colleges in India and abroad in any
educational field in college affiliated with recognized universities, medical colleges,
technical institutions, pharmaceutical colleges, Information Technology and
professional courses, Management etc, so that students from poor & middle classes as
well as brilliant and needy students can take advantages of the scheme. [The scheme
will not cover any correspondence course].
Eligibility: Age of student- An Indian National with minimum of 17 years and maximum 35
years of age can apply for this loan.

Age of Father- The age of Father/Guardian should not be more than 65 years till full
recovery of loan amount.
Education Qualification- Minimum Qualification for co-operative education loan
(CEL) is plus two (+2) and the applicant must have secured at least 50% marks in the
last examination passed.
Admission to Course: - The applicant must secured admission or has got the consent
of the institution to admit to any one of the above-mentioned courses.
Duration Of Course: - The course should not be more than 5 years.
Purpose of Loan
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.

Admission Fee
Purchase of books and stationary
Purchase of instrument required for course undertaken by applicant.
Laboratory charges if any.
Monthly/quarterly tuition fee.
Library charges.
Caution deposit/Building Fund.
Refundable deposits, if any.
Expenses on projects if any.
Boarding and Lodging expenses
Computer purchase if required.
Air fare for joining the course (for study abroad)
Examination Fee.

Amount of loan:

For Studies in India

Rs. 5.00 lacs

For Studies Abroad

Rs. 10.00 lacs

Rate of interest: - The rate of interest on Cooperative Education Loan Facility(CEL)


shall be 7.25% per annum. This rate is however subject to change from time to time.
Processing Charges: - No processing charges shall be charged under CEL.
Insurance of student: - Life Insurance Policy will be taken on the life of the student
borrower for an amount equal to the loan amount and should be assigned in favour of
Bank.
Security: - No collateral security is required up to a loan of 25000/-. This loan shall
be advanced against two good sureties. The loan above Rs.25000/- will be advanced
against collateral security by the applicant/guardian. The collateral security can be in

the form of land/building NSC/KVP/LIC Policy/bank deposits in the name of


student/parents/guardian. The valuation of the collateral security shall be equivalent to
the loan amount.
Disbursement of Loan: - The branch will get sanction of whole loan amount from
competent authority but will disburse the amount based on yearly expenses of course.
In the first year disbursement will be equivalent to the expenses of first yearly only.
Subsequently the loan amount for the next year will be disbursed after successful
completion of previous year. The disbursement of loan should be by Demand
Draft/bank cheque in favour of concerned university /college. In case of purchase of
equipment/books/computer the payment shall be made to the applicant.
Recovery of Loan: - The recovery of principle amount will start after one year of
total duration of course or after 6 months of getting the job/employment by the
applicant, which ever is earlier.
Basic Requirements: 1. Admission Letter.
2. Mark Sheet / Certificate for passing last Board / University examination.
3. Students going abroad for study will have to submit the necessary documents
such as copy of Passport, copy of Admission Letter, copy of Form I-20 (for
U.S), Visa, etc.
4. Applicant should produce year-wise estimated total expenditure which is to be
incurred such as Tuition Fees, Term Fees, Living Expenses, Traveling, Cost of
Books, Examination Fees, etc. Hypothecation of stocks and book debts.
5. Progress Report of the studies of the student from time to time.
6. Disbursement of loan will be made at stages during the duration of the course
of the study as per the requirement as mentioned in the schedule of year wise
estimated expenditure.
7. Any scholarship received during the course of study must be intimated to the
bank and as far as possible such amount received should be adjusted in loan
account.
8. If study is discontinued for whatsoever reason, Bank must be informed and
loan amount must be paid immediately.
9. All other documents and information to be provided as per checklist provided
with the Application Form.
10. The loan documents should be executed by both the student and the Parent /
Guardian as C o-applicant.

* Vehicle Loan *
Rule
No.1

Rule
No.2

These rules are called the rules for granting of Vehicle Loan to
individuals, firms, HUF, Companies, Trust and Cooperative Societies.

Purpose of loan is to provide financial assistance to purchase new vehicles


for business and personal use.

Rule
No.3

The maximum amount that can be sanctioned under the scheme is limited
to Rs.10.00 lac or 80% of value of the vehicle whichever is less.

Rule
No.4

The cost of the vehicle shall be paid directly by the Bank to the suppliers
or authorized dealers on receipt of intimation from the dealer and
instructions from the applicant.

Rule
No.5

The application for loans should be made in the form prescribed by the
Bank.

Rule
No.6

Wherever sanctioning authority is satisfied, loans upto 60% of the cost of


vehicle shall be granted against the comprehensive insurance and lien in
the registration certificate. In case loan is above 60% of the cost of vehicle
(subject to 80% of the cost as stipulated in the rules), two good sureties
shall also be taken in addition to the insurance and lien in registration
certificate in case of buses and trucks for commercial use.

Rule
No.7

At present rate of vehicle loan is 13% and further it shall be determined by


financing bank from time to time and debited to loan account. Interest is
charged as contract made with the loanee. Penal interest @ 2% over and
above the normal rate shall be charged in case of default, on the default
amount for the default period. 0.5% concession is allowed to women

Rule
No.8

The vehicle should be comprehensively insured for the full value covering
all risks and the policy should be in the joint names of borrower and the
bank with agreed bank clause.

Rule The charge of the bank on the vehicle in the form of registration should be
No. 9 registered with the registering authority within 90 days of purchase of
vehicle, failing which additional interest at the rate of 3% shall be
charged.
Rule The repayment of loan should be in the form of monthly installments to be
No.10 repaid within 5 years. However farmers may opt for half-yearly
installments due on 30th June and 31st December. One month moratorium
period shall be allowed under the scheme.
Rule The Bank reserves the right to proceed against the borrower and sureties
No.11 in the event of default in the repayment of loan installment/s.
Rule The borrower should agree to produce the vehicle for periodical
No.12 inspection to ensure that it is maintained in satisfactory condition.
Rule The borrower should agree to be bound by arbitration provisions in the
No.13 Punjab Cooperative Societies Act 1961 and the Rules framed there under.

Rule The borrower should give an undertaking stating that all the terms and
No.14 conditions stipulated by the Bank while sanctioning the loan and those
conditions that may be stipulated in future by the bank are acceptable to
him.

* Second Hand Vehicle Loan Scheme *


In the modern era there is a heavy demand for purchase of second hand vehicles and
the banks have surplus loan-able funds to diversify the loan portfolio and to provide
financial assistance to the borrowers for purchase of second hand vehicle, this scheme
has been diversified.
Short title, extent and commencement:a. This scheme may be called Second Hand Vehicle Loan Scheme to individual
sole proprietor professional and partnership concern residing in the area of
operation of the lending bank by the State and Central Banks as the case may
be.
b. The scheme shall be implemented through the branches of the State and
Central Coop. Banks in UT and in the State of Punjab.
c. It shall come into force from the date of approval by the Registrar Coop.
Societies Punjab Chandigarh.
d. The vehicle to be purchased by the loanee should not be more than 3 years old,
should be accident free, one time road tax paid, bearing Registration Number
of U.T. Chandigarh or the State of Punjab.
Purpose: - Loan shall be advanced for the purchase of second hand vehicle such as
car, jeep, sumo, qualis, etc. for personal/public use.
Eligibility: - An individual, sole proprietor, professional and partnership concern
residing in the area of operation having permanent account number provided by the
Income Tax authority in urban areas and in case of rural area having at least 5 acres of
agriculture land and should not be defaulter. The applicant will be enrolled as nominal
member of the bank under the Act, Rules and Bye-laws.
Quantum of Loan : - The quantum of loan shall depend upon the model and present
value of the vehicle. Present value shall be the value as provided by Sah & Sanghi in
the current price Index and also available on Website
htpp.wwwautomartindia.com/Sah & Sanghi price index. asp or the value approved by
the registered surveyor of any GIC with the condition that the insurer has to get
insurance cover from the concerned Insurance Company on whose list the name of the
surveyor appears, which is lowest shall be the quantum of loan. The maximum loan
amount shall be Rs.5 lacs or 75% of the assessed price of the vehicle whichever is
less.

Interest: - At present rate of second hand vehicle loan is 13% and further it shall be
determined by financing bank from time to time and debited to loan account. Interest
is charged as contract made with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default amount for the default
period. 0.5% concession is allowed to women
Period of Loan/Repayment of Loan: - Maximum period of loan shall be five years.
Repayment of the loan shall, be in monthly equated installment. In case of urban
borrowers and half yearly equated in case of rural borrowers due on 30th June and 31st
December. Moratorium period of one month shall be allowed under the scheme.
Security: - The security for the loan is 1st Hypothecation of the Vehicle in the name
of the bank entered in RC of the vehicle. Two good sureties residing in area of
operation of the bank and having a PAN Card in case of urban areas and two sureties
of the status of borrower in case of rural area. The sureties shall be enrolled as
nominal member of the bank under the Act.
OR
A collateral security to the extent of 100% of loan in the shape of assignment of life
insurance policy, pledge of NSCs, KVPs, Term Deposits of own bank, in case the
borrower is not willing to give sureties.
Disbursal of Loan: - The loan will be disbursed after the appraisal of all legal
documentation completed and borrower having deposited his share of margin in the
SB account. The disbursement will be third party payment by way of banker
cheque/Demand Draft in the name of the seller (owner of the vehicle) delivered
through and under receipt from borrower.
Fee and Other Charges : - A processing fee of 0.25% of the loan amount sanctioned
shall be charged.
Documentation : 1. Identity proof
2. Residential proof
3. Two self attested recent passport size photographs of the applicant and sureties
each.
4. Photocopy of the PAN
5. Copy of Income Tax Return for last three years duly acknowledged by ITO
6. Photocopy of the Driving License
7. A photocopy of the RC of the Vehicle and case of rural people copy of Fard,
Jamabandi.
8. Loan application form
9. Loan agreement
10. DP Note
11. Hypothecation deed/Collateral Security/Agreement Bond from
Sureties.
12. Agreement of Sale.
13. Certificate of present value of car assessed by Surveyor of company guide or
as determined on the basis of guidelines of the Punjab Govt. on the Subject.

Insurance: - Comprehensive insurance in the joint names of the borrower and the
bank shall be made at the cost of the borrower. In case of default bank will be at
liberty to get a policy renewed by debiting to loan account of the borrower.
Dispute: - If at any stage any dispute raised, it shall be settled/referred for arbitration
under the provisions of Punjab Coop. Societies Act. 1961 and rules frames there under
and bye-laws of the bank

* Scheme of granting Loan against Property *


Short title, extent and commencement: - This scheme may be called Scheme of
LOAN AGAINST PROPERTY(LAP). The scheme shall be implemented through the
branches of the Punjab State Cooperative Bank Limited & Central Cooperative Banks
only through an urban branch in the State of Punjab and shall be available to
Individuals. Beneficiaries should be enrolled as Nominal Member of the bank. It shall
come into force from the date as the Registrar, Coop. Societies, Punjab, Chandigarh
decides.
Purpose: - The scheme is for providing finance against mortgage of immovable
property situated at Chandigarh, U.T. Periphery by Punjab State Cooperative bank and
at urban areas (within Municipal Limit) by Central Cooperative bank through its
urban branches, and is designed to offer instant solutions relating to socio-economic
needs such as childrens higher education, travel, daughters marriage, medical
emergencies, etc. The loan will, however be not avail for speculative purpose.
Eligibility: a. An individual residing in and having a self occupied immovable property in
the area mentioned in the Purpose Clause no.3 may apply for the loan in his
individual name or along with another person being joint owner of the
land/property as co-applicant. The applicant and co-applicant, if any, will be
enrolled as nominal members of the bank under the Act, Rules and Bye-laws.
The age of borrower should not exceed 65 years at the time of applying for the
loan.
b. Employees of the PSCB/DCCB can avail this loan against property already
mortgaged with the bank by creating second charge of property subject to the
repaying capacity of the employee as per the scheme of loan.
Type and Quantum of Loan: - The loan can be given in the shape of Term Loan or
Credit Limit. Loan can also be given for both purposes i.e. partly for term loan and
partly for credit limit subject to quantum of loan for both the loan and limit will not
exceed from Rs.25.00 lacs. Quantum of loan will be three times of net annual income
or 50% of value of property, whichever is less. However maximum loan amount will
be Rs.25 lacs. Income of family member can be considered for the purpose of
eligibility of loan.
Interest: - Interest shall be charged @ 15% p.a. compounded quarterly or as may be
revised by the bank from time to time. In case of defaults a penal interest @18% p.a.
over.

Security: I.

Security for the loan is a first mortgage of the property, against which
loan/limit is granted, by way of deposit of title deeds. The valuation of the
property will be based on the basis of last reserve price of the auction fixed by
the Chandigarh Administration. For the properties situated out side the
Chandigarh, it will be the official rates of registration fixed for the same by
respective Municipal or Registration Authority or current market value
whichever is lower.
Suitable one guarantee acceptable to the bank. The guarantor should have its
net worth equal to or more than the loan amount to advanced. In case the
income of family member is taken while calculating loan eligibility, he/she
must be taken as guarantor.
Post dated cheques for the months for which repayment of term loan option is
due.

II.

III.

Repayment of Loan:
a. Loan together with interest is repayable in maximum 72 equal monthly
installments.
b. Overdraft facility is to be renewed/reviewed annually.
Processing Fees: - 0.5% of the sanctioned amount shall be charged. In case of limit of
0.25% will be levied every year on the credit limit.
Documentation:
1.
2.
3.
4.
5.
6.
7.

Loan application Form.


Loan Agreement.
D.P. Note.
Mortgage Deed.
Non-Encumbrance Certificate.
Letter of lien and set off.
Map and Current Valuation Report of the property from Govt. Approved
Architect.
8. Search report and legal opinion along with the photo.
9. Letter of continuity
10. Original Title Deed.
Insurance: - Comprehensive Insurance in the joint names of the borrower and the
bank shall be made of the property mortgaged against fire, riots, earthquake,
lightning, floods, etc. In case of default bank will be at liberty to get a policy renewed
by debit to loan account of the borrower.
Documents required from applicants:
Documents required from Salaried Individuals
1. Proof of Residence Any one of Ration Card/Telephone Bill/Electricity
Bill/Voters Card.

2. Proof of Identity Any one of Voters Card/Drivers License/Employer


Card/Passport/PAN Card.
3. Latest Bank Statement/Passbook (where salary/Income is credited for past 6
months).
4. Latest 3 months Salary Slip with all deductions & Form 16 for last 2 years.
5. Copies of all Property Documents.
6. Self attested recent passport size photographs of the applicant and co-applicant
(two).
7. Copy of Income-tax Returns for last two years.
Documents required from the non-salaried individuals
1. Income proof.
2. Proof of Residence Any one of Ration Card/Telephone Bill/Electricity
Bill/Voters Card.
3. Proof of Identity Any one of Voters Card/Drivers License/Employer
Card/PAN Card.
4. Latest Bank Statement/Passbook (where salary/Income is credited for past 6
months).
5. Copies of all Property Documents.
6. Copy of Income Tax Returns for last two years.
Disputes: - If at any stage any dispute arises, it will be settled/referred under the
Punjab Cooperative Societies Act 1961 or any other relevant act at the sole discretion
of the Bank.

* Loan scheme for Earnest Money *


In order to meet requirements of the public of Punjab and U.T. Chandigarh, the
Cooperative Banks of launches one more.
Purpose: - To meet the financial requirements towards Earnest Money deposit to
book residential plots/ built up house/ flats being sold by Govt. housing agencies,
urban Development Authorities like PUDA, HUDA and Housing Boars, cooperative
Housing Building societies, House fed and Improvement Trust.
Beneficiaries: - Individuals of 21 years of age and above.
Agreement with Housing Agencies : - The Bank shall enter into agreement with the
concerned housing agencies for collection of applications on behalf of the agencies
and to get direct refund of unsuccessful applicants financed by the bank within
specified time.
Margin: - No margin required.
Security : - No security required.
Maximum Loan : - As per scheme of the agency.

Interest rate : - As fixed by bank from time to time. Interest will be charged initially
for a period as stipulated by the concerned DCCB and will be non refundable. In case
of delay in allotment, repayment, refund of money beyond stipulated period , bak will
charge interest as fixed by it.
Processing Fee :- As fixed by PSCB/ concerned DCCB.
Disbursement: - The loan would be disbursed by the issuance of draft/bankers
cheque favoring the concerned agency.
Repayment of Loan

In case of unsuccessful candidates on receipt of refund from the housing


board/Urban development authority etc.
In case of successful applicants lump sum repayment. In case applicant
avails housing loan from the bank, earnest money can be adjusted from the
same.
No prepayment penalty will be levied.
Bank may extent the period at its discretion by getting the amount of interest
in advance.
In case of delay of allotment as per scheme, borrower shall repay amount in
lump sum on demand, otherwise bank will charge penalty.
Documents
1. Two latest Photographs.
2. Proof of residence in the form of copy of Passport, Driving License
Voters ID Card etc.
3. Two Post Dated Cheques in favour of the bank.
4. Signature Proof.
5. Borrower to give an authority that the representative of the bank is to
collect refund order/letter of intent/ allotment letter on his behalf from
the agency.
6. Loan agreement.
7. Power of Attorney.
8. Declaration for signing in vernacular language.

* Coop Rent Loan Against Rental Incomes Scheme *


Introducing a new scheme for property owners having their property situated in are of
operation of the bank and who have let or proposes to et out such properties to PSUs,
reputed Govt./Semi-Govt. corporate, banks, financial institution, insurance
companies, cooperative societies, trust and MNCs.
Eligibility: - Owners of the property who have or propose to let out the same
companies/commercial/industrial/software companies, MNcs, Bank, PSUs/Reputed
Govt.Semi-Govt. Institution/Organization, Financial Institution, Insurance companies.

Owner of properties who have rented out their premises to cooperative bank are also
eligible.
In case of residential flats/house leased out to Cooperative Bank Officers.
Note: - The facility is available only to resident customers and not NRIs.
Purpose: - For meeting business/personal needs.
Loan Amount: - Maximum to the extent of 75% of post TDS rent receivable for a
period not exceeding 120 months or unexpired period of lease, whichever is less. (The
rent receivable is calculated as per rental/lease agreement and if there is any inbuilt
provision for increase in rentals during next 120 months or unexpired period of
least/tenancy the same is considered for calculation of loan amount).
The minimum loan amount under the scheme is Rs. 1.00 lacs. There is no upper limit
but it must be within prudential exposure norms.
Security : Primary : - Assignment of lease Rentals.
Collateral: - Equitable Mortage of relative immoveable property to the extent of
150% of the proposed loan (For any reason if the relative property cannot be given as
security any other commercial or residential property is acceptable.
OR
Other chargeable securities such as NSCs, IVPs, Banks deposits to the extent of
100% of loan amount.
OR
150% cover partly by immoveable property and partly by securities such as NSCs,
IVPs, Banks deposits. In case the property/security is in the name of third party,
personal guarantee of the owner of assets proposed to be taken as collateral security.
Rate of Interest: - As decided by the bank from time to time.
Period of Loan: - Maximum period of loan shall be 10 years or unexpired period of
lease, whichever is earlier.
Repayment of Loan: - By way of equated monthly installments from the proceeds of
monthly rentals, to be repaid within 120 months or unexpired period of lease, which is
less.
Margin: - Minimum 25%
Processing Charges: - 0.50% of the loan amount. These are changed time to time.

Insurance: - Insurance for full market value of properties in the name of borrower(s)
to be mortgaged to bank with bank clause. Insurance to cover risk such as fire, riot,
earthquake etc.
Documents: 1.
2.
3.
4.
5.

Loan application.
Certified Copy of Less Deed.
Proof of income for applicant and lessee.
Copy of IT return.
Certificate copies of title deeds of the properties leased out and mortgaged
along with latest tax receipts.
6. Copy of approved building plan.
7. Authority letter by the borrower to the bank for receiving rent directly from
the tenant/lessee and letter of undertaking from tenants/lessee to pay rent
directly to bank.
8. Tripartite Agreement between borrower, lessee and the bank.
9. Copy of partnership deed/memorandum and articles of Association (not for
individual applicant).
10. Copy of lease/tenancy agreement.
11. Copy of latest tax receipt of the property.
12. Latest IT/WT Assessment, if available.
13. Audited Balance Sheets of Firm/Company.
14. Certificate of outstanding balance in loan a/c against the property.
15. Copy of latest rent receipts ( in case existing tenant/lessee).

* Cash Credit Facility to Traders and Others *


Name of Cash Credit Facility to Traders and Others
the
Scheme
Rule
No.1

Rule
No.2

These Rules shall be called The Punjab State Coop. Bank /


Central Coop. Bank rules for granting Cash Credit Facility to
Traders and others.
1. The bank means The Punjab State Coop. Bank Ltd.,
or Central Coop. Banks of Punjab.
2. The Board of Directors and the Executive Committee
means the Board of Directors and Executive
Committee constituted under the Bye-laws of the
Bank.
3. Authorized Officer means the Officer authorized by
the BOD/Executive Committee of the Bank to receive
and take appropriate action on the applications for
loans under the scheme.
4. Borrower means and individual, sole proprietor, firm,
cooperative society or a company doing
manufacturing/ trading business/providing services

having an assured income.


5. Cooperative Societies Act means The Punjab
Cooperative Societies Act,1961 as amended from
time to time.
6. Cooperative Societies Rules means the Punjab
Cooperative Societies Rule, 1963, as amended from
time to time.
7. Registration means the Registration under the Shops
Act or under Companys Act.
Rule
No.3

Cash Credit Facility under the Scheme shall be granted for


meeting working capital requirements.

Rule
No.4

The applicant should not have availed cash credit facility


from any other financial institution for the purpose.

Rule
No.5

The maximum amount of Cash Credit Limit under these


Rules shall be Rs.25 lac.

Rule
No.6

The application for cash credit limit shall be made by the


borrower on the prescribed form of the bank.

Rule
No.7

The sanctioning of the Cash-Credit by the Bank shall be


made only in case it is satisfied of the viability of the
Project /proposal.

Rule
No.8

The borrower shall hypothecate in favour of the bank the


entire current assets created besides collateral security of the
value of 150% of the Cash Credit Limit sanctioned. Limit
upto Rs.50,000/- may be granted with two good sureties only
and hypothecation of stock/assets with the Bank.

Rule
No.9

The borrower shall produce clear marketable title to the


property to be mortgaged in favour of the bank to the
satisfaction of the bank.

Rule
No.10

The licensed contractors approaching the Bank for CashCredit Facility should give a power of Attorney in favour of
the Bank to receive the cheque from Government/ Quassi
Govt. Institutions and to encase the same.

Rule
No.11

The Bank shall be at liberty to call for additional/collateral


security/securities at any time.

Rule

The legal expenses, fee, registration charges and other

No.12

Rule
No.13

incidental charges incurred in connection with the financing


shall be borne by the borrower.
At present rate of cash credit traders is 12% and further it
shall be determined by financing bank from time to time and
debited to loan account. Interest is charged as contract made
with the loanee. Penal interest @ 2% over and above the
normal rate shall be charged in case of default, on the default
amount for the default period.
0.5% concession is allowed to women

Rule
No.14

The borrower shall maintain the books of account as


prescribed by the bank. Borrower shall furnish stock
statement as per following periodicity indicating the opening
stock, purchases, sales and closing stock.
Amount of limit upto Rs.1 lac Quarterly
Above Rs.1 lac

Monthly

Failure to furnish stock statements will attract penal interest


@ 2% p.a. on upstanding amount for period of nonsubmission of statements.
Rule
No.15

The Cash Credit Limit sanctioned should be kept current by


regular drawls and repayments. In other words, the business
transaction of the unit should be deposited in the Cash Credit
Account.

Rule
No.16

The Cash Credit Limit shall be sanctioned for a period of one


year. Renewal of the Cash Credit Limit will be allowed by
the bank at its discretion based on the performance of the unit
and also the operation in the cash credit limit account.
Aggregate credits during the year in the limit account should
be two times of the sanctioned limit or highest availed limit.

Rule
No.17

The borrower should insure the assets created out of loan and
the policy should be in the joint name of the borrower and the
bank with agreed bank clause.

Rule
No.18

The Borrower shall execute all the loan documents


prescribed by the bank.

Rule
No.19

Deleted.

Rule

The borrower shall agree to be bound by the provisions

No.20

regarding arbitration in the cooperative Societies Act and


Cooperative Societies Rules.

Rule
No.21

The Borrower should become the nominal member of the


bank by paying necessary membership fee as fixed by the
Bank.

Rule
No.22

Whenever the borrower fails to discharge the loan as agreed


upon the Bank should take legal action against him to recover
the loan outstanding with interest and cost. The borrower
shall be liable to make good of the expenses and legal
charges that has been incurred by the Bank in this regard.

Rule
No.23

Processing fee @ 0.25% shall be charged at the time of


sanctioning of the C.C. limit. These charges of 0.25% shall
be levied every year.

Rule
No.24

Margin at the rate of 25% shall be maintained on the present


value of stock.

* Various Agriculture Loan Schemes *


Agriculture loan provided in various forms for various agriculture purposes. The
various types of agriculture loans are as under: -

A) Short term agriculture loan


Purpose: - Financial assistance to meet cultivation expenses for various crops.
Eligibility: - Agriculturists, Tenant farmers and Share Croppers who actually cultivate
the lands are eligible for these loans. All categories of farmers - Small/Marginal
(SF/MF) and others are included. The borrower should be member of co-operative
societies
Loan Amount: - Loan amount is worked based on the cost of cultivation incurred for
each crop per acre of crop cultivated and 75 % of the cost of cultivation (Scale of
Finance) is given as loan.
Documents needed to provide:
1. Land records to ascertain cultivation rights.
2. Acreage under different crop.
3. Sources of other borrowings e.g. Co-operative Societies and Banks.

Disbursement of the loan: - As per the cultivation requirements of the crop the loan
amount is disbursed in cash and kind (for fertilizer, pesticides etc)

B) Medium Term Agriculture Loan


Purpose: - To purchase Trali and which are helpful in agriculture
Eligibility: - He has his own land. The borrower should be member of co-operative
societies.
Loan Amount: - 75 % of the cost of product (Scale of Finance) is given as loan.
Nature of Loan: - Cash Credit and Drafts.
Repayment of Loan: - After 6 months.

C) Two Wheeler Loan for Farmers


Financing of Two Wheelers to farmers is considered as direct finance to agriculture.
The acquisition of Two Wheelers by farmers increases their mobility, saves their
valuable time on travel, reduces the cost of traveling, helps in arranging inputs in time
and facilitates access to the markets. Bank has drawn a special scheme for financing
of Two Wheelers to farmers.
The salient features of the scheme are as under
Eligibility: - Borrower should be an agriculturist and own agricultural land either in
his own name or in the name of his family members. The Age of the borrower should
not be less than 21 years at the time of application and not more than 60 years at the
time of maturity (repayment of loan). The borrower should be member of cooperative societies
Repayment: - The repayment period should not exceed 5 years. The borrower's
repayment capacity is to be considered on the basis of crop grown, income from other
sources and income of spouse
Security: - Hypothecation of vehicle to be purchased with bank loan. In case the
sanctioned loan/limit exceeds Rs.25, 000 security of agricultural land also to be taken.
The value of security including the value of vehicle should be at least double the
value of loan.
Limit: - Cost of two wheeler to be purchased should not exceed Rs.50, 000/-

D) Cash Credit Fertilizers


Purpose: - To provide fertilizer to Farmers for production of crops.

Eligibility: - The Age of the borrower should not be less than 21 years at the time of
application and not more than 60 years at the time of maturity (repayment of loan).
The borrower should be member of co-operative societies.
Nature of Loan: - Cash credit and Cheque.
Extent of Loan: - Need based Maximum Rs.24, 000/- per hector only
Repayment of Loan: - The loan shall be repayable in 3 years depending upon the
activity.

E) Cash Credit Limit to Cooperative Sugar Mills


This is Scheme for Financing Farmers Growing Sugar Cane Crop in Tie up
Arrangement with Sugar Mill Acting as Business Facilitator
Purpose: To provide Crop Loans for cultivation of sugar Cane under tie up
arrangement with Sugar Mills acting as Business Facilitator.
Eligibility: Farmers growing and supplying Sugar Cane .
Nature of Loan: Cash Credit
Extent Of Loan: Need based Maximum Rs.3.00 Lakh
Repayment of Loan: 12/18 months. To be synchronized with harvesting of crop

F) Tractor loan
In order to mechanize farming and improve the output of the farmers,
the Bank has been giving loans for the Purchase of Tractors.

Terms & Conditions: - :

The work load with the owner of the tractor should be so that he has to use the
tractor for at least 1000 hrs/year.
For the Purchase of the Tractor, the beneficiary availing loan should own or
purchase a minimum of 3 Agricultural Implements (including Trailor) to be
used with the Tractor.
In the purchase of the first Tractor the loanee has to spend 15% of the total
cost of the Tractor (including shares - 10% margin money & 5% shares) &

with the second purchase30% of the total cost is to be spared by the


loanee as down payment out of his own pocket.
Loan is given only for those Tractors which are Budhni tested and are ISI
approved. The payment of the tractor is given to the Supplier Firm, as third
party payment.
The tractor should be registered by the Transport Authority.
The insurance of the tractor is must.
The repayment period for Tractor Loan is 9 years.

G) Tube well Loan


To bring the Barani unirrigated agricultural lands under irrigation, the bank has been
giving loans for installation of shallow Tubewells to the farmers in the State. For the
purpose of exploitation of underground water, the State has been divided into 138
blocks which are further earmarked as White, Grey and Dark. Presently, 84 blocks are
Dark, where tubewells to the full capacity have since been installed; 16 blocks are
Grey where there is some more scope for installation of new tubewells; and 38 blocks
are White, where there is greater scope for installing new tubewells. The Bank is a
major financier in the installation of tubewells in the Punjab State. Every 3rd
Tubewell running in the field in the State is installed with the Credit help of this
Bank.
Terms & Conditions

Area should not be Dark, but should be White or Grey for installation of new
tube well.
Unit cost varies from area to area according to the depth of underground water
and credit is given up to the actual cost of tube well installation.

Repayment period is 9 years, with Grace period of 1 year.

Diesel Engine / Electric Motor should be ISI marked.

Insurance of Tube well is necessary.

H) Soil cultivation and water management


Under this scheme, the loan is provided for the following purposes :

Land Leveling
Sand scraping
Under-ground Pipe-lines
Reclamation of Alkaline soils
Reclamation of Shallow Ravine

Details : -

Purpose

Units cost (in Rs.)

Sand Scrapping (1 hectare)

14,500

Underground Pipeline (1 ha)

11,250

If water source is within the field

13,400

Alkali Soil Reclamation (1 ha)

9,000

Shallow Ravine Reclamation (1 ha)

10,000

Terms & Conditions:

Loan Applications under the above scheme be recommended by the Soil


Conservation Department, Punjab. Applications should be accompanied by
the lay-out plan and estimate cost approved by the Soil Conservation
Department. The loanee should have the proper irrigational facilities with him.
The loanee is advanced 85% of the total loan.
The loan is to be returned within 9 yearly equal installments which includes 1
Grace year. Only ISI marked pipes and other material should be used

Resources: - The Bank raises its resources with the collection of share capital
strengthening on its owned funds by taking deposits and borrowings from the
NABARD, Punjab State Co-operative Bank Ltd., Chandigarh or from Punjab
Government.

* Dairy Development Loan *

Dairy business has been very successful in Punjab. The bank also has a greater role in
the success of Dairy Farming in Punjab. The bank's schemes have proved very
beneficial for the rural areas of Punjab. Under the Dairy Development Scheme, loans
are provided to Individual/Milk Unions for the establishment of two, three, five and
ten milch animals units as under:

Objectives: a. To increase the income of members of Cooperative Milk Societies helping


them to purchase higher yielding cattle.
b. To increase the income and supply of milk to Cooperative Milk Producers
societies.
Minimum Economic Size: - The Central Cooperative Bank through its branches shall
extend loan facility for the purchase of one cow.
Eligibility Criteria: I.
II.
III.
IV.
V.
VI.

The applicant should be a member of cooperative milk producers society.


He should have cattle shed arrangements enough to house the existing animals
and also proposed to be purchased.
He should be the supplier of milk to the society during at least past one year.
He should be the cultivating green fodder or should have definite
arrangements for its supply.
He should have sufficient experience/knowledge in dairy farming.
He should be the nominal member of the Central Cooperative bank.

Amount of Finance: - The bank shall provide loan for one cow with ceiling of rs.
35000/- or the animal whichever is less.
Margin Money: - The applicant contributes minimum 15% of the total cost of animal
as margin money. However margin for scheduled caste, Backward Class and
Economically backward members shall be 10%.
Rate of Interest: - The bank shall charge interest @ 10.5 % per annum from the
member of the Milk Producers Cooperative Societies which will be subject to change
as per prevalent market rates from time to time.
Repayment of Loan: - The loan shall be repay\able in 5 years in equal monthly
installments along with interest.
Securities/documents: - The members shall furnish the following security/document
to the Central Cooperative bank.
a. Time pronote
b. Guarantee by two persons who should be nominal members of the bank and
who should be the owner of at least 2 acre of agriculture land.
c. Hypothecation of milk animal to financed by the bank.
d. He shall sign and get signed tripartite agreement between the borrower the
Cooperative Milk Producers society and the bank.

Application Form: - The application form for dairy loan will be submitted by the
member on prescribed from as per annexure a through the Cooperative Milk
Producers Society.
Appraisal : - The branch Manager of the central Coop. Bank shall visit the farm to
appraisal the technical feasibility and economic viability of the proposal. He shall
apprise project as per Performa annexed as Annexure B.
Procedure to be followed: - An eligible person shall apply for the loan prescribed
Performa attached as annexure A to the Branch Manager of central cooperative
bank through the Village Milk producer Cooperative society. The President of the
milk producer cooperative society shall place the application before the managing
committee of the society for consideration of the application for its recommendation
to the bank. If the managing committee approves the application then the president
shall forward it to the branch manager of the branch of the central cooperative bank in
whose area of operation the society falls. After the application along with resolution
of the society is received in the branch of the bank the branch manager shall apprise
the loan case as the appraisal from (attached at Annexure B). After the appraisal of
the loan case the branch manger will sanction the loan and get the necessary
documents executed from the borrower.
After the execution of documents the manager shall get margin money deposits from
the applicant in his saving bank account. The manager shall disburse the loan through
draft/pay order/cheque in favor of third party from whom the borrower has purchase
cow by debiting the loan account for the amount of loan and saving account for
margin money.

CHAPTER V
FINDINGS AND CONCLUSION

Findings of the study

o
o
o
o
o
o
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Patilala Central Cooperative Bank is the district level bank and it has
43 branches in rural and urban areas to serve the all types of customers.
PCCB is aided by NABARD and Punjab Govt. bear 50% share of the
bank
Most of the branches of PCCB are still non-computerized and
employees are doing their work manually.
Under PCCB most of the staff is old aged and there is a lack skills of
new blood.
The main purpose of PCCB is to serving the people in both rural and
urban area.
The procedure getting a loan is very simple and understood able under
P.C.C.B.
The service of loan granting is very fast under P.C.C. B. A loan can be
passed into 3 or 4 days.
The Patiala Central Cooperative Bank also provide some non collateral
loan schemes only on the basis of guarantee like personal loan scheme
which benefited to a normal person.

Conclusion
The repaid changes in the banking sector are creating opportunities and challenges.
Increasing size, Breadth, complexity and geographic scope of banking have increased
challenges of managing, regulating and supervising banks. Also it has become quite
difficult for a bank to a gain a unique market share. Still the bank is old one, and
according to market requirements bank increase and develop its products time to time
like initially bank provide most of the agricultural loan schemes but now it also
preferred to other types of loan schemes which really help to general people. But to
meet the competition of market in proper manner Patiala Central Cooperative Bank
Ltd. Need some more hard work and management should pay more attention.

CHAPTER VI

RECOMMENDATIONS

Recommendations
1. If the interest rate has been reduced or has
become disfavourable to the customer, the
bank should inform him.
2. The bank should explain clearly all the terms
and conditions of loans that the customer wants
to avail in the local language and nothing should
be concealed.
3. The bank should act as per the standing
instructions of the customers, and thus avoid
inconvenience.
4. The bank should keep the information of the
Accounts of the customer confidential.
5. The sanction of rejection of the loan applied by
the customer should be conveyed in writing.
6. The loan documents should be filled in the
presence of the customer.
7. There should be complaint boxes installed in the
bank that are opened weekly and proper
redressal of complaints is done.
8. All the counter staff should be thoroughly
trained with all the schemes/rules and
regulations of the bank, so that the customer gets
one window service.
9. PCCB should open new branches in the Rural
and Urban Areas to achieve the targets.
10. Since 1980 no recruitment made in this Bank.
Staff should be recruited for smooth working.
11. Branches should be computerized.
12. Rate of interest should be reviewed
periodically.
13. 11 Single men Branches are functioning so,
there is a great operation risk in the Bank and
management should pay attention about it.
14. In todays world most of the banks provides
ATM facility . So to meet competition in the

market PCCB should also provide the ATM


facility.

BIBLIOGRAPHY
Bibliography
I) Documents and Circulars
1. Previous years Reports are analyzed.
2. Documents and Circular
II) List of Websites
http://www.nios.ac.in/Secbuscour/15.pdf
http://finance.indiamart.com/investment_in_india/banking_in_india.html
http://en.wikipedia.org/wiki/Banking_in_India
http://www.banknetindia.com/banking/bfunc.html
http://www.capitalmarket.com/CMEdit/SFArtDis.asp?
SFSNO=356&SFESNO=19
6. http://www.banknetindia.com/banking/ucb.htm
7. http://www.moneyguideindia.com/what-are-co-operative-banks/
1.
2.
3.
4.
5.

8.
9.
10.
11.
12.
13.
14.

15.
16.

http://pbcooperatives.gov.in/PSCB.htm
http://www.ecommercejournal.com/news/punjab_state_co_operative_bank_en
hance_its_efficiency_by_means_of_flexcube
http://www.punjabcooperation.gov.in/html/pscb_history1.html
http://www.scribd.com/doc/17319280/CoOperative-Bank-Mgt
http://www.investorwords.com/2858/loan.html
http://www.articlesbase.com/loans-articles/importance-of-loans-in-todays-life184411.html
http://digilib.petra.ac.id/viewer.php?
page=1&submit.x=0&submit.y=0&qual=high&fname=/jiunkpe/s1/hotl/2008/j
iunkpe-ns-s1-2008-33403003-9666-food_lucky-chapter4.pdf
http://www.allbusiness.com/management/125039-1.html
http://en.wikipedia.org/wiki/Procedure_(term)

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