LOAN

DIVERSIFICATION IN COOPERATIVE BANK

The The formulation formulation of of monetary monetary poli poli ie! ie! of are of "o#t$ "o#t$ an% an% international international a"en a"en ie! ie! are !u&!tantially !u&!tantially influen influen e% e% &y &y the the emer"in" emer"in" a a ti#itie! ti#itie! of of the the national national an% an% international international money money mar'et mar'et player!$ player!$ Thi! Thi! thin"! thin"! %ifferen %ifferen iatin" iatin" oop oop &an'! &an'! from from om om &an'! &an'! an% an% forei"n forei"n &an'!$ &an'!$ To To 'eep 'eep pa pa e e (ith (ith the the tren%! tren%! They They al!o al!o to to %i#er!ify %i#er!ify their their a a ti#itie!$ ti#itie!$ The The 'ey 'ey fa fa tor! tor! of of Bu!ine!! Bu!ine!! Di#er!ifi Di#er!ifi ation ation in in ooperati#e ooperati#e Ban'! Ban'! are are The The le#el le#el of of in in ome ome of of the the people people ))

Introduction Introduction

 E*pe

tation! of the u!tomer!) rate of litera y) the "eo"raphi ) %emo"raphi p!y ho"raphi on!i%eration!) the rural ur&an orientation) the han"e! in e onomi !y!tem) the fre+uent u!e of te hnolo"y et $

an%

Chan"e! in pro%u t line , or a%%in" e*tra pro%u t in the e*i!tin" line$ Droppin" the le!! popular pro%u t!$ -or'in" (ith u!tomer.! ta!te! an% hoi e$ Con!oli%ate the pro%u t! if ne e!!ary$ E*pan%in" an% mo%erni!in" the !er#i e A ti#itie!//$ Sharpenin" ompetiti#e e%"e$

Profit i! the ultimate "oal of any &u!ine!! or"ani0ation in lu%in" ooperati#e!$ Di#er!ifi ation help! to he%"e the ri!' In rea!e net mar"in, !prea%$ Ine#ita&le %ue to han"e in ta!te! an% hoi e of u!tomer!$ To !tan% in the ompetition$ Chan"e in pattern of !pen%in" &y the u!tomer!$ A%#ent of ne( te hnolo"y$ Chan"e! of 1o#t$ poli ie!, re"ulation!$ Impa t of international o&li"ation!$

Crop loan to PACS KCC loan to PACS Ca!h re%it to PACS -or'in" apital finan e to In%u!trial Enterpri!e! A"ri ultural Cooperati#e! 2ar'etin" So ietie!$ Pro e!!in" Cooperati#e!$ Cooperati#e Spinnin" mill!$ Su"ar Cooperati#e! -ea#er! Cooperati#e!

O#er%raft to urrent A ount hol%er! a! per their o#er%ra( limit !an tione% &y the &an'
Ple%"e loan to PACS Ple%"e loan to Su"ar mill!, other type of manufa turin" ooperati#e!$ 2T on#er!ion loan to PACS$

Ne( an% inno#ati#e approa h Retail &an'in" Farm Se tor Se on%ary Se tor! Ne( Client!

Spon!orin" of !elf help "roup 3S415 Ban' lin'a"e of S41! Co/or%inate approa he! to 3N1O!5 S(arna6ayanti 1ram S(aro0"ar 7o6ona 3S1S75 Finan in" to 8L1 38oint lia&ility 1roup!5 or Tenant Farmer!$ Finan in" to han% raft arti!an!$ Finan in" to 4an%loom o(ner!$

The "roup i! (or'in" at lea!t !i* month! an% ha#in" in#e!tment in e onomi ally #ia&le a ti#itie! of their fun% (hi h they ha#e !a#e%$ They ha#e not ta'en loan from the Pri#ate money len%er!$ The amount of loan at lea!t e+ual to their o(n "roup !a#in"!$ Loan !houl% not &e "i#en to any in%i#i%ual mem&er9 it !houl% &e in the name of the "roup$ The B2 !houl% #erify their re%it plan$

Do umentation for the loan i! !implifie%

Appli ation for loan from the 1roup !e retary$ Re ommen%ation letter from the PACS, N1O!$ A"reement (ithin the mem&er! ma'in" them lia&le for the loan$ A"reement (ith the S41

No ollateral !e urity , or mar"in re+uire% rela*e%$ 2inimum po!!i&le intere!t rate$ Timely !an tionin" the loan amount$

Loan for pur ha!e of plot or lan% for the u!e in the "roup$ loan for laun hin" a pro6e t approa he%$ Loan! for on!tru tion of hou!e for the "roup mem&er$ Loan to impro#i!e the !anitation !y!tem$ loan for fa ilitie! for (hole!ome %rin'in" (ater$ loan for LP1 onne tion$

Retail &an'in" mean! the Pro#i!ion! of &an'in" !er#i e! to in%i#i%ual u!tomer, !mall a ount hol%er!$ Cooperati#e &an' ha! to !prea% retail &an'in" in the intere!t of ommon people$

Appro#al of RCS i! not ne e!!ary for all ST,2T,LT loan! for (hi h RBI , NABARD formulate% the loan ! heme$

&an' ha! to %e!i"n ne( Pro%u t! to !uit the u!tomer! in the area of operation!$

CCB! an finan e %ire tly to in%i#i%ual) proprietary , Partner!hip firm!

A"ain!t F$D$, NSC,KVP) LIC poli ie! ple%"e of "ol%) !il#er or ornament!$ Ca!h re%it fa ilitie! to !mall &u!ine!!man , tra%er! a"ain!t ollateral ple%"e or hypothe ation$ Temporary o#er%raft fa ilitie! to in%i#i%ual! , urrent A, hol%er!$ Pur ha!e of ommer ial an% non/ ommer ial #ehi le!$

A%#an e! a"ain!t : IVP! , KVP! Lan% ; Buil%in" 1o#t$ an% other appro#e% LIC Poli ie! Ple%"e , hypothe ation of a"ri ulture pro%u t!$ Supply &ill!$ -arehou!e re eipt! Share) %e&enture! an% &on%!$

<=

Bill! pur ha!e% an% %i! ounte%$ Loan! for pur ha!e of t(o (heeler! motor #ehi le!) et $ Ca!h re%it , o#er%raft! to retail &u!ine!!men , tra%er! , SSI unit!$ Loan! to in%i#i%ual!$

for pur ha!in" on!umer %ura&le! hou!e on!tru tion an% repair!) et $

An informal 1roup on!i!tin" of > to <? in%i#i%ual!$ -ho ha#e ome to"ether$ For the purpo!e! of a#ailin" &an' loan$ Either !in"ly or To"ether in "roup me hani!m$ A"ain!t mutual "uarantee$

To pro#i%e re%it to tenant farmer! ulti#atin" lan% either a! oral lea!e! or !hare ropper!$ To pro#i%e SF,2F (ho not ha#e proper title of their lan% hol%in"$ To e*ten% ollateral free loan!$ To &uil% mutual tru!t an% onfi%en e &et(een &an'! an% tenant farmer!$

Similar !o io/e onomi !tatu!$ Carryin" out framin" a ti#itie! at lea!t for the la!t <year$ Voluntarily a"ree to fun tion a! a "roup$ Not more than one mem&er from the !ame family$

Finan in" In%i#i%ual! (ithin the 1roup$ Cre%it re+uirement &a!e% on @/ Crop! ulti#ate% Lan% hol%in" Cre%it a&!orption apa ity$ All mem&er! to e*e ute one inter/!e a"reement : 8ointly an% !e#erally lia&le$

JLG Models Model B

Finan in" the "roup$ 8L1 fun tion a! one &orro(in" unit$ Com&ine% re%it re+uirement of all mem&er! "i#en a! a !in"le loan$ If they !a#e) re%it not to &e lin'e% to !a#in"! li'e S41!$

Fle*i&le re%it pro%u t A%%re!! the re%it re+uirement of the mem&er! in lu%in"$

Crop pro%u tion Con!umption 2ar'etin" Other pro%u ti#e purpo!e!$

O&6e ti#e! : Similar li'e farmin" 8L1!$ Benefi iarie! : (ea#er! , 2i ro entrepreneur! , arti!an!$ Criteria for !ele tion :

!imilar !o io/e onomi !tatu!$ Carryin" out their a ti#itie! at lea!t for one year$ Voluntarily a"reein" to fun tion a! a "roup$ Shoul% not &e a %efaulter$ One mem&er per family norm!$

Pro#i!ion of affor%a&le finan ial !er#i e! #i0$

Payment ; remittan e! fa ilitie! Sa#in" Loan! an% in!uran e !er#i e!$ By the formal finan ial !y!tem$ To tho!e (ho ten% to &e e* lu%e%$

S41 : Dominant 2o%el$ Ban' : 2FI partner!hip 2o%el : Emer"in"$ 8L1$ Bu!ine!! Fa ilitator$ Bu!ine!! Corre!pon%ent$ No Frill A ount$

Ban'! may u!e interme%iarie! for en!urin" finan ial in lu!ion N1O!,S41! In!uran e A"ent!, Villa"e Kno(le%"e Center! , Farmer.! lu&$ Community &a!e% or"ani0ation! A"ri lini , a"ri/ &u!ine!! enter!3ACABC5 Po!t offi e! , Pan hayat!

I%entifi ation of &orro(er!$ Colle tion, Preliminary pro e!!in" of loan appli ation!$ A(arene!! reation : !a#in"!, loan pro%u t! %e&t oun!elin"$ !u&mi!!ion of appli ation to &an'! $ Nurturin" of S41!, 8L1! Po!t !an tion monitorin" , hol%in"$ S41!,8L1!,Cre%it 1roup! $ Follo( up for re o#ery$

N1O!, 2FI! Re"i!tere% NBFC! not a Po!t offi e!$

eptin" %epo!it$

Activities of business Correspondents Di!&ur!al of !mall #alue re%it Re o#ery of Prin ipal , olle tion of intere!t$ Colle tion of !mall #alue %epo!it! Sale of mi ro in!uran e$

Sale of mutual fun% Pro%u t!$ Sale of Pen!ion pro%u t!$ Re eipt an% %eli#ery of !mall #alue remittan e!$ Other payment in!trument!$

No Frill A, i! a !a#in" &an' A ount (ith Aero or lo( &alan e A ount $ 1o#t$ of In%ia i! routin" the (a"e! pai% un%er NRE1A throu"h the!e A, !$ State 1o#t$ routin" the !o ial !e urity &enefit! li'e ol% a"e Pen!ion in!uran e et $ A &a!i no frill a ount i! 6u!t the &e"innin" of a relation!hip$ -oul% ha#e pa#e% the (ay for a#ailin" a #ariety of !a#in"! pro%u t! an% loan pro%u t!$ O#er a perio% of time no frill a ount hol%er! (ill &e ome re"ular u!tomer!$

Enhan e! &u!ine!! opportunity in rural len%in"$ Ban'! e!ta&li!hment lo!e onta t (ith rural lientele$ Ban'! "et a forum to mar'et their pro%u t$ It i! an En%ea#our to pro#i%e rural Ban'in" 4elp! in enhan e% %epo!it mo&ili0ation$ In rea!e in the re%it flo($ Di#er!ifi ation in len%in"$

Farmer.! lu& are "ra!! root! le#el informal forum!$

Or"ani!e% &y rural &ran he! of &an'!$ (ith the !upport an% finan ial a!!i!tan e of NABARD$ For the mutual &enefit of the Ban'! an% farmer!$

Openin" up ne( &u!ine!! a#enue!$

mi ro irri"ation &io te hnolo"y horti ulture po!t har#e!t han%lin" te hnolo"y$

Better an% appropriate u!e of Ban' loan$ BBB

T4ANK

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