Special Cash Credit loan for Agriculturists
Subject to the I.M.B.P. limit prescribed in the byelaws of the respective credit societies, Cash Credit Loan will be granted to the farmer members of the society under the following terms and conditions:
a. The member desiring to have Cash Credit Loan shall execute an indemnity bond in the prescribed form creating charge against his immovable properties to the extent of the Cash Credit Loan required by him provided it does not exceed 50% of the market value of the properties.
b.The indemnity bond executed shall be got registered and continue to be a guarantee for the Cash Credit loan and need not be registered every year
c. The member shall execute separate pronote every year as soon as the cash credit loan is sanctioned or renewed.
d. The society will sanction the Cash Credit Loan for a period of not exceeding 12 months. The due date is to be decided in consultation with the borrower. The member can operate the cash credit loan throughout the year and draw by cheques as and when required by him.
e. Repayment of the loan shall be by crediting the sale proceeds of the produce marketed by the member through the credit society and no repayment in cash will be allowed. However, interest of the CCL and principal under special circumstances not exceeding one fourth of the maximum limit of the cash credit may be credited in cash in the whole year.
f.The member shall bring down the balance to nil and can even shall show credit balance in the cash credit account for at least one week in the year within the expiry of the period. Failure to do so will disqualify for renewal of the cash credit or liable for reduction in the limit depending upon the merits of the case. Such credit balance shall carry interest as S.B. rate calculated on daily products.
g.The member availing of such cash credit is not eligible for any other short term crop loan or marketing finance except pledge loan against the produce sent for sale to the marketing societies provided such loan amount is credited to the cash credit loan account only.