The bank was formed by amalgamation, on the 31st March 2006, of the five banks, sponsored by SBI, to participate more energetically, with synergy, in the uplift and development of Rural Farm Sector and Rural Non-Farm Sector, with emphasis on the deprived, the Rural Poor, Rural ISB and Rural Crafts. The bank offers home loan, personal loan, education loan, agricultural loan, business loan etc.
Purpose – The loan is offered for any Domestic need
Type of loan – Demand loan
Eligibility – RD Account holder (with monthly installment of at least Rs 400/-) under the scheme after it has run for at least 12 months. RD Installments should have been regular.
Quantum of Loan – Twice the balance outstanding in the RD account at the end of 12 installments. (Minimum Rs 5,000/- – Maximum Rs 50,000/-).
Rate of Interest – 10% p.a.
Repayment – The loan would be partially clean and partially secured by the o/s amount in RD Account. Clean portion of the amount would be repaid in 24 or 48 monthly installments with EMIs commencing one month after taking the loan till maturity of RD Account.
Security – Lien on RD Account.
Documents required – DP Note and DP Note Take Delivery Letter; Security Delivery letter; Arrangement letter