Thursday, February 23, 2023
Saturday, March 24, 2018
PRIORITY SECTOR
Rohit Gupta
March 24, 2018
0
PRIORITY SECTOR LOANS
1: AGRICULTURE
2: MICRO SMALL AND SERVICE ENTERPRISES
3: EXPORT CREDIT
4: EDUCATION LOAN
5: HOUSING
6: SOCIAL INFRASTRUCTURE
7: RENEWAL ENERGY
8: OTHER
PRIORITY SECTOR
WEAKER
SECTION
·
SMALL
& MARGINAL FARMERS : LAND HOLDING UPTO 2 HECTARE OR 5 ACRE.
·
VILLAGE
& COTTAGE INDUSTRY: MAX LOAN PER BORROWER 1 LAKH
·
WOMEN
BENEFICIARY: MAX LOAN 1 LAKH
·
S.H.G:
LOAN TO BE SHG
·
LOAN
TO BE DISABLED PERSON
·
OVERDRAFT
UPTO 5,000/- UNDER JANDHAN YOJNA.
·
SC/ST
BENEFICIARY
·
MINORITY
COMMUNITY BENEFICIARY
·
LOAN
TO POOR PERSON FOR REPAYMENT OF LOAN TO MAONEYLENDERS.
·
D.R.I
SCHEMES
·
NRLM
BENEFICIARY
·
NULM
BENEFICIARY
·
SRMS
BENEFICIARY
ALL OF THES ARE PART OF WEAKER SECTION.
MINORITY
COMMUNITY
IN INDIA-
·
MUSLIMS
·
CHRISTIANS
·
JOHRASTIANS
(PARSI)
·
SIKKHS
·
BAUDDH
·
JAIN
TARGETS
Targets are linked to ANBC or CEOBE
whichever is higher.
Where ANBC is adjusted bank net
credit.
CEOBE means credit equivalent of off
balance sheet exposure.
Off balance sheet exposure
·
Bank
guarantee
·
Letter
of credit
·
Forward
credit
Targets
for domestic banks & foreign banks more than 20 branches in INDIA
· 40% of ANBC or CEOBE.
·
Agriculture
target : 18% of ANBC or CEOBE
·
10%
OF ANBC or CEOBE (Weaker Section)
·
Small
& marginal farmers target : 8% OF ANBC or CEOBE
·
MICRO
& Small enterprises : 7.5% of ANBC OR CEOBE.
Targets for foreign banks less than
20 branches in INDIA
Priority sector : 14% of ANBC or
CEOBE..
NOTE : Non achievement of targets by domestic
commercial banks and foreign banks, shortfall to be deposited in RIDF. Or any
other fund described by RBI.
R.I.D.F : Rural Infrastructure
development fund , maintained with NABARD.
Targets for R.R.B
·
75%
of Total advance (Priority Sector)
·
15%
of total advance (weaker section)
·
18%
of total advance (agriculture)
·
8%
of total advance (small & marginal farmers)
·
7.5%
of total advance (Micro & Small enterprises)
·
Other targets for domestic commercial banks
·
Women beneficiary: 5% of ANBC
·
Minority community : 15% of priority sector
·
No
target of DRI advance as percentage of ANBC.
·
No
target for export credit.
·
Min
40% of DRI advance to SC/ST
·
Min
2/3rd of DRI advance to rural and semiurban branches.
·
100%
of loans under PMEGP scheme should be given to micro enterprises.
·
Min
50% of subsidy under PMEGP should be routed through rural areas.
·
NOTE
: LOANS under PMEGP , not part of weaker section.
·
General terms & conditions of P.S
·
Loans
upto 25,000.00 under priority sector –
·
No
margin, no collateral security, no processing fees, no penal interest.
·
Loan
application disposal norms to be decided by banks.
Agriculture
Advance
·
Three
category of agri. Advance
·
Farm
credit
·
Agriculture
infrastructure
·
Ancillary
activity in agriculture
·
Farm credit : Loan
to farmer for agriculture & allied activity including production credit
(crop loan)
·
Farm
mechanization
·
Irrigation.
·
If
loan given against stored produced or ware house receipt or produced marketing loan
is then it will be considered as Farm credit.
·
Maximum
loan : Rs 50 lakh.
·
Maximum
period : 12 Months.
·
Loan
to small and marginal farmers for purchase of agricultural land.
·
Loan
to poor farmers for repayment of loan to money lenders, it is called RURAL DEBT
SWAP.
·
Loans
under KCC.
·
Loan
to corporate or partnership for agriculture or allied activity – Max. loan 2
crore.
·
If
loan is more than 2 crore entire amount
will become non priority sector.
Agriculture Infrastructure
·
Construction
of ware house or cold storage.
·
Production
of seeds.
·
Tissue
culture
·
Soil
conservation
·
Note:
anywhere in INDIA – Max. loan : 100 crore per borrower from banking system.
·
·
Ancillary activity in agriculture :
·
Loan
to agriclinic or agribusiness centre.
·
Loan
to agro food processing industry – Max loan per borrower = 100 crore
·
Loan
to co-operative leisures – Max. loan 5 crore per borrower
·
Deposits
in RIDF
·
Loan
to micro finance industries
·
Terms & conditions for agriculture advance.
·
No
coll. Security , no margin for loans upto 1 lakh.
·
No
dues certificate not to be taken irrespective of amount of loan.
·
service
area approach discontinued but still continuing in govt. sponsored schemes.
·
Marginal
farmers- land holding upto 1 hectare or 2.5 acre.
·
Small
farmers – land holding upto 2 hectare or 5 acre.
CROP LOANS
·
Short
duration crop : crop season upto 12 months.
·
Long
duration crop : crop season more than 12 months.
·
Decision
regarding short duration or long duration crop taken by SLBC (state level
banker’s committee.)
·
RABI
CROP : OCTOBER TO MARCH- wheat & gram are main crops.
·
KHARIF
CROP : APRIL TO SEPT. peddy is main crop.
·
Scale
of finance per acre is decided by district technical committee.
·
Mixed
Farming : agriculture with animal husbandry simultaneously is called mixed
farming. (kheti k sath sath pashupalan ka bhi kaam kiya jaye.)
·
Mix
cropping : more than one crops are grown in one time is called mix cropping.
·
Interest subvention scheme
·
Intt.
Subvention is available for loans upto 3 lakh.
·
Crop
loans upto 3 lakh given by banks @ 7%.
·
Govt.
will give intt. Subvention of 2% to the bank.
·
Subvention
will be claimed half yearly as on 31st March & 30th
September.
·
Additional
subvention of 3% to the farmer for prompt repayment of the loan.
·
Subvention
is not available for overdue loans.
KISAN CREDIT CARD :
Purpose :
·
KCC
can be used for production credit (crop loan)
·
KCC
can be used for consumption loan.
·
Loan
against store produced (produced marketing loan)
·
Maintenance
of farm assets
·
Investment
credit (tractor)
·
Validity
of KCC : as per bank’s descrition (generally 5 years)
·
Fixation of limits : crop loan = land holding * scale of finance per acre
·
Consumption
loan : 10% of crop loan
·
Loan
for maintenance of farm assets : 20% of the crop loan
·
Total
limit : 130% of crop loan
·
KCC
limit will be increased every year by 10%
·
Credit
balance in kcc interests as at saving rate
·
Personal
accident insurance scheme for kcc holders, premium will be borne by bank &
borrower in the ratio of 2:1
PMFBY
(Pradhanmantri Fasal Bima Yojna)
·
It
is insurance of crops
·
Risks
which are not covered – war risk & nuclear risk
·
Insurance
premium :
·
Rabi
fasal : 1.5% of insurance amount
·
Kharif
fasal : 2% of insurance amount
·
Annual
crop : 5% of insurance amount
·
LOAN To Agriclinic & Agribusiness centres
·
Agriclinic
& agribusiness centres are set up by diplomaholders, graduates or post
graduates in agriculture.
·
No
margin , no collateral security for loans upto 5 lakh.
·
Max
project cost per person = 20 lakh. But in highly successful case it may be 25
lakh.
·
Max
project cost for group 1 crore.
·
Repayment
period : 5 to 10 years
·
Subsidy
to agriclinic provided by NABARD.
·
SUBSIDY
: SC/ST, WOMEN, NORTH EAST, HILL AREA : 44% Of project cost
·
In
all other cases subsidy will be 36% of project cost
·
ALLIED AGRICULTURE ACTIVITY
·
Sericulture-
related to silk
·
Pisciculture
– related to fish
·
Apiculture
– related to bee keeping
·
Apriculture
– related to mushrooms
·
Olariculture
– related to vegetables
·
Floriculture
– related to flowers
·
Horticulture
– related to fruits
·
Green
revolution – related to woodgrain
·
White
revolution – related to milk
·
Blue
revolution – related to fish
·
Yellow
revolution – related to oil seeds & pulses
·
SELF HELP GROUP(S.H.G)
·
Group
of below poverty line persons
·
Objective : mutual help & mutual co-operation
·
Development
of saving habbits
·
Q:
what is not the major objective?
·
Making
super profits
·
Raising
loan from the banks
·
Members
: 10 to 20
·
In
difficult areas and group of disabled persons : 5 to 20 members
·
Bank’s
finance : after 6 months of group formation
·
Max
30% members can be above poverty line
·
Above
poverty line, not eligible for subsidy
·
Joint liability group
·
Members
: 4 to 10
·
Objective
: to raise loan from the banks
·
Max
loan per member = 50 thousands (50,000.00)
·
Max
loan per group = 5 lakh (5,00,000.00)
PRIORITY SECTOR WIKIPEDIA
PRIORITY SECTOR FAQs BY RBI
MSME UNDER PRIORTIY SECTOR
Rohit Gupta
March 24, 2018
0
MICRO SMALL & MEDIUM ENTERPRISES
(MSME)
Ø MANUFACTURING ENTERPRISES :
Ø Investment in plant & machinery
upto 25 lakh (MICRO)
Ø Investment in plant & machinery
above 25 lakh but upto 5 crore (SMALL)
Ø Investment in plant & machinery
above 5 crore but upto 10 crore (MEDIUM)
Ø NOTE : Khadi and village industry is classified as
micro & small enterprises irrespective of Investment in plant &
machinery.
Ø NOTE : Cost of generator & pollution control
equipment or tools will not be taken in cost of plant & machinery.
Ø
SERVICE
ENTERPRISES :
Ø Small business
Ø Transport operators
Ø Retail traders
Ø Professional & self employeed
Ø MICRO SERVICE ENTERPRISES :
Ø Investment in equipment upto 10 lakh
(micro)
Ø SMALL SERVICE ENTERPRISES :
Ø Investment in equipment upto Rs 2
crore
Ø MEDIUM SERVICE ENTERPRISES :
Ø Investment in equipment upto Rs 5
crore
CLASSIFICATION AS PRIORITY SECTOR :
MANUFACTURING
ENTERPRISES :
Ø Loan to micro, small & medium
manufacturing enterprises , part of priority sector irrespective of amount of
advance.
Ø SERVICE ENTERPRISES :
Ø Loan to micro & small service
enterprises , part of priority sector if ,
Ø Max. loan = 5 crore
Ø Loan to medium service enterprises ,
part of priority sector if ,
Ø Max. loan = 10 crore
Ø NOTE : as per FEB-2018 policy of RBI ,
restrictions of 5 crore & 10 crore for service enterprises will be removed.
Ø TERMS & CONDITIONS :
Ø As per GANGULY committee & NAYAR
committee cluster approach will be adopted for financing micro & small
enterprises.
Ø TARGETS AS PER NAYAR COMMITTEE ;
Ø outstanding advance to micro &
small service enterprises should increased by 20% every year.
Ø Number of accounts of micro &
small service enterprises should grow by 10% every year.
Ø Max. composite loan to micro &
small service enterprises = 1 crore.
Ø No collateral security to be taken
for loans upto 10,00,000.00
Ø If past record is good no collateral security
for loans upto 25,00,000.00
Ø If loan granted under credit
guarantee scheme no collateral security for loans upto 2 crore.
Ø CREDIT GUARANTEE SCHEME FOR MICRO
& SMALL ENTERPRISES ( C.G.S.M.S.E)
Ø Scheme is operated by credit guarantee fund
trust (C.G.F.T)
Ø ELIGIBILITY CONDITIONS :
Ø Unit should be micro or small
enterprises except retail traders.
Ø Max. amount of loan = 2 crore
Ø No collateral security , no 3rd
party guarantee
Ø Max. interest rate : 14%
Ø GUARANTEE FEES :
Ø STANDARD RATE : for loans in NORTH-EAST , WOMEN & MICRO
ENTERPRISES : IF,
Ø LOANS UPTO 5 LAKH : 0.75% per annum of limit sanctioned
Ø LOANS MORE THAN 5 LAKH : 0.85% per annum of limit sanctioned
Ø Note : except above two cases , 1% per annum
of limit sanctioned.
Ø ADDITIONAL FEES BASED ON NPA LEVEL :
Ø NPA more than 20% : standard rate +
1%
Ø NPA >15% but <20% : standard
rate + 0.5%
Ø NPA >12% but <15% : standard
rate + 0.25%
Ø NPA =12% or <12% : standard rate
Ø NPA =6% or <6% : standard rate –
0.25%
Ø NOTE : guarantee fees is applicable every year as on
31st MARCH and fees should be payable within 60 days.
Ø CLAIM :
Ø For loans upto 5 lakh : 85% of amount in default (Max. claim
= 4,25,000.00)
Ø If loan more than 5 lakh : in case of NORTH-EAST & women
Ist 50 lakh : 80% of amount in default.
Ø Note : and all other cases 75% of amount in
default.
Ø For loans above 50 lakh : 50% of amount in default ( Max.
claim will be 1 crore)
NATIONAL
EQUITY FUND SCHEME
Ø SIDBI provides margin money
assistance to small entrepreneurs without charging any interest.
Ø Max. project cost : 50 lakh
Ø Margin money assistance = 25% of
project cost (maximum 10 lakh)
Ø Repayment period : 7 years
Ø Borrower’s margin : 10%
LAGHU UDYAMI CREDIT CARD
Ø Issued to micro & small
enterprises except transport operators
Ø Max value of the card = 10 lakh
Ø Validity period = 3 years
Ø Limit :
Ø In case of professionals : 50% of
fees received last year
Ø In other cases 20% of last year’s
sale
WEAVER
CREDIT CARD (W.C.C)
Ø It is for handloom weavers
Ø Max. value of the card = 2 lakh
Ø Max. 3 years validity
EXPORT
CREDIT
Ø Incremental export credit over
previous year will be a part of priority sector but maximum can be 2% of ANBC.
EDUCATION LOAN
Ø No restriction on amount of loan but
maximum 10 lakh will be priority sector & balance amount non priority
sector
HOUSING
LOAN
Ø LOAN FOR CONSTRUCTION OF HOUSE :
Ø METRO AREA : POPULATION ABOVE 10 LAKH
:
Ø Max. loan = 28 lakh
Ø Max. cost of house = 35 lakh
Ø OTHER AREAS :
Ø POPULATION < 10 LAKH
Ø Max. loan = 20 lakh
Ø Max. cost of house = 25 lakh
Ø LOAN FOR REPAIRING OF THE HOUSE :
Ø METRO AREA :
Ø Max. loan = 5 lakh
Ø OTHER AREAS :
Ø Max loan = 2 lakh
Ø INDIRECT HOUSING LOAN :
|
Ø
Nature of
agency
|
Ø
Purpose
|
Ø
Max. loan per house
|
|
Ø
Govt.
|
Ø
Houses for slum
dwellers
|
Ø
10 lakh
|
|
Ø
Pvt. Or Govt.
agency
|
Ø
Houses for EWS
& low income groups
|
Ø
Max. cost per
house 10 lakh
|
|
Ø
Housing finance
comp.
|
Ø
Construction of
individual houses
|
Ø
Ax. Loan per
house 10 lakh
|
NOTE : E.W.S
OR L.I.G MEANS : ANNUAL INCOME UPTO Rs
2,00,000.00
SPECIAL INFRASTRUCTURE :
Ø Education (for schools, colleges)
Ø Healthcare (for hospitals)
Ø Sanitation (toilet)
Ø Drinking water supply
Ø Maximum loan per borrower = 5 crore
RENEWABLE
ENERGY (SOLAR ENERGY) :
LOAN
FOR INDIVIDUAL HOUSE HOLD :
Max. loan =
10 lakh
LOAN
FOR COMMUNITY LIGHTING : Max .loan = 15 crores (15,00,00,000/-)
OTHER
PRIORITY SECTOR :
Ø Loan upto Rs 5,00,000/- to any poor
person.
Ø Poor person means annual income in
rural area upto Rs 1,00,000/- per annum
Ø Maximum annual income in semi urban ,
urban & metro area = Rs 1,60,000/-
MSME ALL SCHEME
