Against Pledge and Assignment of securities
Bank shall sanction loans / overdraft limits against the pledge of various eligible securities, as under:-
Loan Eligibility
- National Saving Certificate 85% of accrued value
- RBI relief Bonds - do -
- Bonds of other institutions - do -
- Insurance Policies 90% of surrender value
Note:
- The Bank shall get its lien / assignment registered on all such securities.
- All industrial shares should be fully paid-up and in De-mat form only.
- Overdraft limits shall be sanctioned for one year and renewable on yearly basis.
- The aggregate of Loans / Advances made against the security of shares should remain within the overall ceiling of 20% of the owned funds of the Bank.
- The credit facilities under this segment may be sanctioned, without obtaining the personal surety / guarantee of any other member.
