1. Advances against Banks deposits are granted by way of Overdraft or Loans .
2. Such advances should be normally made to depositors in whose names the deposits stand.
3. Advances to third parties against Banks Deposits can be made with due sanction of the Authorities to whom powers are granted duly complying with the prescribed norms .
4. Deposits in the name of minors can be considered only for the benefit of minor depositors and an undertaking letter to the effect that the amount of advance would be utilised for the benefit of the minor should be obtained from the guardian.
5. The maximum duration may be from the date of advance to the date of maturity of the deposit.
6. No. advance shall be made against the deposits belonging to a minor with guardian appointed by a court without court order.
7. No. advance shall be made against deposits of other banks.
8. The interest rate chargeable in respect of advances shall depend upon the category of the borrower and the purpose of the advance.

1. Loans/Overdrafts can be sanctioned for productive purposes at the Banks usual rate of interest with a margin of 25% on the face value of IVP/KVP for a period not exceeding the maturity period of IVP/KVP as the case may be lodged as security.
2. Genuineness of the Bearer securities and bonafide of the borrower shall be ensured by the Branches by observing the guidelines given in MOA-Vol-II.Item No.27-11-6.
3. The margin prescribed at 35% in case of NSCs purchased within a period of the proceeding 12 months and 25% in other cases on the face value.
4. Only after the concerned Post office makes an endorsement on the relative certificate to the effect that the certificate has been transferred as security to the Bank, the advance may be allowed.

1. Advances against companies debentures and approved shares may be made either as loans or as Overdraft.
2. While considering grant of advance against shares/Debentures, Banks must follow the normal procedures for pre-sanction appraisal and post sanction follow up.
3. Advances against primary security of shares/debentures may be given only to
   • Individuals
   • Stock & share brokers
   • Trusts & endowments.
4. Loans & Advances against demated approved shares & debentures-Maximum Limit Rs.20 lakh
5. Margin – 40% on demated shares.
   Margin – 50% on physical / Infotech shares on the lowest price as on the last Friday of the month in a recognised stock exchange or monthly average price whichever is lower.

1. Loans for construction/repair/Renovation/Extension./ Loans for purchase of plot/site.
2. Bridge loan for housing
3. Taking over of Housing Loan.
4. No. upper ceiling (for repairs Rs.10 lakh) for construction of house/flat.
5. Addition amount may be considered to the extent of face value of NSC/KVP/TD/S.V. of LIC Policy.
6. Loan up to 80% (Margin 20%)
7. The age of the house up to 30 years.
8. Maximum repayment is 15 to 20 years.
9. Age of the building up to 50 years for repair.
10. Loan amount up to 60 months salary/income.

1. Loans to Real Estate/Property developers/Builders.
2. Loans to construction of cinema Theatre.
3. Loans to Community/convention/Meeting/Marriage halls.
4. Loans to Educational Institutions.
5. Loans for setting up Hotels, Lodges, Holiday resorts, Private clubs.
6. Trading in Tobacco & Processing
7. Advances to coffee curing and trading in coffee beans.

1. If the plant and machinery proposed to be hypothecated are permanently embedded to the earth and the land and building in which they are so embedded are owned by the applicant but have already been mortgaged by him to someone else, such Machinery can not be taken as security and therefore Branches should not take interest in such proposals.
2. If the land & building belongs to a person other than the applicant and has been taken on lease by the applicant, hypothecation of machinery installed thereon subject to proof of applicants ownership may be accepted even if it is embedded to the earth, provided a letter of no claim is received from the owner of the land.
3. If the machinery proposed to be hypothecated is permanently fixed in the building owned by the applicant but which is not encumbered in any manner, the security of such machinery could be accepted.
4. The machinery proposed to be hypothecated should be generally new. If the machinery is second hand, the year of purchase, residual life and the normal depreciation to be allowed should be taken into account to determine the value of security.
5. Branch Manager should ensure that the machinery proposed to be hypothecated to the Bank is suitable for the project.
6. After hypothecation of the machinery, it should be got insured against the risk of fire with Bank clause incorporated in the policy.
7. Small tin plate with wordings “Hypothecated to Vijaya Bank …………Branch” should be fixed on each item of machinery to evidence that the plant & Machinery are under hypothecation to the Bank.
8. If the borrower is a limited company, the charge created in favour of the Bank should be got registered with Registrar of companies.
9. The Machinery should be got valued by a competent engineer approved by the Bank.
10. The original invoice should be got scrutinised. The market value of machinery may be taken into account for purpose of valuation after considering its life.
11. Whenever advances are granted against Machinery/equipments, branches should ensure that the prescribed margin on the value thereof is maintained at all times.
12. When advances are granted against motor vehicles, banks lien on such vehicles should be got registered with the Regional transport Authorities.
13. The various instructions contained in the chapter on advances against motor vehicles and industrial advances should be followed.

Repayment :
Repayment in 60 Equated monthly instalments

1. While granting facilities on hypothecation basis, limited companies are preferred since charges on the securities can be got registered with the Registrar of Companies. Exceptions are made in case of borrowers who maintain good inventory control system.
2. When facilities are cash credit basis, It is necessary that the borrower should pass through the cash credit account all his business dealings.
3. Advances against seasonal commodities should be got liquidated by the end of the season.
4. The other instructions contained in the chapter on Advances against goods Manual of advances should be followed.
5. Goods should be readily marketable and fast moving.
6. Easily perishable and inflammable goods should not be accepted.
7. The advances should be granted against the security of those goods in which the borrower normally deals in.
8. Seasonal goods should not be retained for more than one year without sanction of H.O.
9. Goods whose quality and value cannot be easily determined should not be accepted
10. In the case of manufactured goods, Branch Manager should verify the manufacturers invoices
11. While examining the invoices, it should be ensured that the goods are not held by the borrower on consignment basis or that supplier has a charge either on the goods or on their sale proceeds
12. Licence or permits for dealing, storing, transporting or handling the relative goods where required from the concerned authorities should be held.

1. Limits considered for purchase/discount of bills should be commensurate with the business requirements of the borrowers, based on the normal credit assessment/appraisal./
2. In the case of usance bills, the usance period should not normally exceed 90 days unless otherwise specifically permitted .
3. Purchase/discount of bills on drawees who had dishonoured the bills earlier drawn on them, should be avoided as far as possible.
4. Re-purchase of bills which are returned unpaid except for technical reason are not permitted.
5. Granting bills purchase/discount facility together with advances against book debts has to be avoided unless different drawees for the bills purchase/discount facility are properly and distinctly identified.
6. In the case of demand documentary bills documents of title to goods should be of a recent date covering consignments of approved goods in which the customer deals in and drawn on places to which the customer usually consigns goods.
7. The facility of purchasing /discounting of bills should be made available only to those parties who have sanctioned limits for the purpose.
8. The borrower is dealing with the same commodity /goods represented by bills and not others.

Rs.5 crore.

1. Branches should not purchase /discount the bills drawn under revocable L/c of other Banks.
2. Bills drawn under L/cs established by co-op Banks should not be purchased/discounted
   Written confirmation should be obtained from the L/c issuing Bank through their controlling Office.

1. Accomodation cheques drawn by the borrowers themselves or their branches/close relatives/associates firms should not be purchased.
2. Post dated cheques are not to be purchased and cheques crossed ‘not negotiable’ are to be purchased only for payee customer.
3. Re-purchase of cheques which were returned unpaid except for technical reasons are not permitted.
4. Purchase/discount of cheques should be strictly in accordance with the instructions of the H.O. issued from time to time.