METHOD OF LOAN SANCTION

The following institutions are authorized to act as Sub-Channelizing Agencies of this corporation for the disbursement and recovery of loan.

• District Central Co-operative Banks / Primary Agricultural Co-operative Credit Society / Urban Co-operative Bank.
• The Tamil Nadu Co-operative Milk Producers Federation Ltd.

The Co-operative Banks, will process the loan applications received for sanction of loan. After ensuring the viability of the scheme, eligibility and repaying capacity of the applicant, the applications will be placed before the District Screening Committee headed by Joint Registrar of Co-operative Societies and the Committee will recommend for sanctioned of loan.

MEMBERS OF DISTRICT SCREENING COMMITTEE

• Joint Registrar of Co-operative Societies (chairman)
• District Backward Classes and Minorities Welfare Officer (Convener)
• General Manager, District Industries Central (Member)
• Special Officer, District Central Co-operative Bank (Member)
• Project Officer, Tamil Nadu Corporation for Development of Women (Member)
• Representative of concerned Co-operative Banks (Member)
• Representative of Self Helps Groups (Member)

REPAYMENT OF LOAN

The repayment of the loan amount will commence after 2 months moratorium period under all schemes. The loan amount should be repaid in monthly / quarterly basis to the bank depending on the schemes, as mentioned in the sanctioned order.

LEVY OF PENAL INTEREST

Penal interest is charged at 5% per annum from the defaulters for the periods in default.

LOAN SANCTIONED CARD MAINTENANCE

After sanctioned of loan, the beneficiaries will be issued ‘loan sanctioned card’ which should be produced at the Bank for making necessary entries, while repaying the dues in installments.