Kerala State Backward Classes Development Corporation Ltd.

<<Home

Schemes >

Training >

Security and Penalty for Repayment >

The beneficiary must furnish necessary security either in the form of employee's surety or asset surety for the loan in addition to the personal surety of the loanees. The beneficiary should execute necessary agreements for the timely repayment of loan amount. Normally the repayment shall start after completing 30 days from the date of disbursement. . In the case of certain specified projects moratorium up to 6 months is allowed. In general, the repayment period is 60 months

Employee Surety:
The following are the minimum qualifications to stand as an employee surety:

a. Persons working in Govt, Quasi-Govt., Public Sector, Autonomous Bodies, Govt owned private limited companies, Apex Co-operative Institutions, Service Co-operative Banks, Aided School Employees etc. are eligible to stand as employee surety

b. The surety should have at least 6 years service left for retirement.

c. An employee cannot stand as surety to more than one beneficiary.

d. The monthly net salary should be as follows:

Loan Amount	Net Salary
Upto 20000	1500
30000	2000
40000	2500
50000	3000

(If the net salary of an employee is not adequate, more than one employee surety can be considered)

Land Surety:
The following are the documents to be submitted for Land Surety:

a. Original Title Deed

b. Prior Deed (if necessary)

c. Valuation Certificate from the Tahsildar

d. Latest Tax Receipt

e. Location Certificate from the Village Officer

f. Possession Certificate issued by the Village Officer

g. Encumbrance Certificate issued by the Sub Registrar

h. If the landed property is not in the name of the beneficiary, an agreement from the owner of the land should be produced in a stamp paper worth Rs. 50/-. (Note: If the land value is below the loan amount sanctioned, amount will be limited to the land value).

Penalty for Non-payment
A penal interest will be charged for misutilisation of loan amount and also for belated payments of installments subjected to the condition that the total interest (both the Penal and the Normal Interest) rate shall not exceed 19%. The dues are also recoverable under Revenue Recovery Act.

Application forms and Procedures
Application forms are issued against the notification/press release from this Corporation. Along with the application, the applicant must produce necessary Income and Caste certificate issued by the concerned Village Officer. A certificate from the member of local body may also be produced, specifying that the applicant is competent to undertake the proposed project. Proof of Age should be produced at the time of personal interview. Those who fulfill the prescribed eligibility criteria will be invited for a personal interview. A Sub Committee constituted for conducting the interview will select the beneficiary and sanction the loan, based on the personal interview. The disbursement of loan is done after fulfilling the terms and conditions regarding security, on execution of agreement and producing relevant documents. The repayment starts on completion of one month from the date of disbursement of loan or as specified in the case of certain schemes.