Interest Subvention Scheme for Kisan Credit Card (KCC) to Fisheries and Animal Husbandry farmers

Reserve Bank of India vide. its circular RBI/2019-20/48 DD.CO.FSD.BC.No.10/05.02.001/2019-20 dated August 26, 2019 conveyed that the Government of India has issued the operational guidelines of the Interest Subvention Scheme for Kisan Credit Card facility to fisheries and animal husbandry farmers for a period of two years i.e. 2018-19 and 2019-20. According to notification, the lending…

Appraisal: Loan application for construction, alteration, renovation of school building

Term loan application received from educational institutions run by trusts, private management, requires appraisal of the project as well as appraisal of the management. First step of appraisal of project involves verification of whether the institution has the necessary approval from the Government agencies to run the school. Secondly, bank has to verify whether the…

Banks are prohibited from levying foreclosure charges/ pre-payment penalties

Reserve Bank of India on Friday (August 02, 2019) reminded all the commercial banks that they are not permitted to charge foreclosure charges / pre-payment penalties on home loans / all floating rate term loans sanctioned to individual borrowers. The above norm of prohibiting banks charging foreclosure charges/pre-payment penalties on floating rate loan is already…