Annexure

Procedure to be followed by Regional Offices regarding Term loan cases

A. Sanction Stage:

1. Details and information about all schemes, systems and procedures shall be made available to entrepreneurs both through Head Office and Regional Offices. Printed leaflets should be kept at both Head Office and Regional Offices.

2. Loan application in the prescribed format shall be received by Regional Office (RO) with processing charges @0.1% of the loan applied and other attachments as per check list.

3. Loan application shall be forwarded by RO to HO within 3 days alongwith brief note and comments containing details like promoters background, location of project, project cost, means of finance, market prospects, performance of similar industries in the area etc.

4. Appraisal Team shall be constituted at HO.

5. PCC note shall be put up to PCC in which entrepreneur and representative of RO will be invited.

6. After clearance from PCC, scrutiny shall be taken up in one week.

7. List of points requiring additional information shall be issued to the borrower alongwith copy to RO for follow-up.

8. RO shall pursue with entrepreneur for obtaining information.

9. RO shall be associated in site visit.

10. Detailed appraisal memorandum shall be prepared and put up to sanctioning authority by Appraisal Cell at HO.

B. Documentation & Disbursement Stage:

11. After issue of sanction letter, RO will coordinate for execution of documents with DGM (Documentation), PID Cell and Entrepreneur.

12. RO shall obtain progress reports on monthly basis.

13. Request for disbursement shall be made at RO. The same shall be forwarded to PID Cell (HO) alongwith comments & observations within 3 days.

14. Physical verification of assets shall be carried out by RO in association with PID Cell initially.

15. Disbursement shall be approved by competent authority at HO and copy of release order for disbursement of funds shall be sent to RO and to entrepreneur.

16. The request for approval of variations/changes if any in the project shall be received and processed by RO and forwarded to PID Cell for examination/approval.

17. Loan A/c. shall be maintained at RO with parallel A/c. at HO.

18. RO shall follow-up for recovery.

19. RO shall obtain Quarterly performance report and Balance sheet.

20. Requests for reschedulement if any shall be received and processed by RO for forwarding to F & R Cell (HO).