Purpose of Loans:

  1. Business Expenses –To carry out business, purchase of raw materials, payment of creditors etc.


  1. Individuals engaged in Agriculture and allied activities i.e. dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture
  2. The Life insurance Policy( LIP) should be in force for a minimum period of 3 years and should be assignable
  3. Advance against NSC/ KVP - NSC/ KVP should be minimum 1 year old

Limits of Loans:

  1. No limit


  1. NSC/ KVP  : 10%-15% of the face value
  2. LIP : 10% of surrender value

Basis of Advance:

  1. NSC : 90 % of Face Value if residual maturity period is less than 3 years.
              85 % of Face Value if residual maturity period is more than 3 years
  2. LIP :  90% of surrender value

Repayment Period:

  1. 5 years in case of TL OR date of maturity whichever is earlier

Rate of interest (Floating):

  1. PLR -5.75 : 9.75% p.a
    PLR @15.50% p.a. (w.e.f -13.02.2023)


  1. In case of LIP, the terms and conditions of the Policy should state that Policy can be assigned / Loan can be availed against the Policy.
  2. KVP/NSC should be pledged/LIP should be assigned in Bank's Name.

Processing Fees:

  1. Nil


  1. 2.5% of sanctioned amount maximum Rs 25,000/-

Documents Required:

  1. Prescribed loan application form