priority sector banking

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Priority Sector Banking, Farm Loan, Agriculture loan, education loan, housing loan

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Presentation Transcript

LENDING TO PRIORITY SECTOR : 

LENDING TO PRIORITY SECTOR

What is Priority Sector : 

What is Priority Sector Sector which impact larger section of Population Sectors which are employment-intensive Agriculture Sector Weaker Section Tiny & Small Enterprises

Why Priority Sector : 

Why Priority Sector Focus on Rural Development by The Government. More then 70 % population of India lived in rural area. More then 70% rural population gets their lively hood by doing agricultural activity. Disincentives to Bank’s shortfall in targets for Priority Sector Lending. Promoting new innovations.

Categories of Priority Sector : 

Categories of Priority Sector Agriculture Small Enterprises Retail Trade Micro Credit Education Loan Housing Loan

Targets & Sub Targets : 

Targets & Sub Targets Total Priority Sector – 40 % of ANBC Total Agriculture – 18 % of ANBC (4.5 % of Indirect Agriculture + Direct Agriculture Advances) Weaker Section – 10 % of ANBC SSI 40 % of total SSI to artisans, cottage & K.V. Industries 20 % to SSI units – Rs. 5 lacs to Rs. 25 lacs 40 % to SSI units – exceeding Rs. 25 lacs DRI 40 % to SC/ST At least 2/3 should be through Rural & Semi Urban branches.

Agriculture : 

Agriculture Direct Agriculture Finance to individual farmers, SHGs, JLGs, groups of individual farmers for Agriculture and Allied Activities (dairy, fishery, piggery, poultry, bee-keeping, etc.) Finance to corporates, partnership firms and institutions for Agriculture and Allied Activities (dairy, fishery, piggery, poultry, bee-keeping, etc.) Indirect Agriculture Loans to food and agro-based processing units Credit for purchase and distribution of fertilisers, pesticides, seeds, etc. Finance for setting up of Agriclinics and Agribusiness Centres Loans for construction and running of storage facilities Loans to Arthias Loans to NBFCs for on lending Loans granted to NGOs/MFIs for on-lending Loans granted to RRBs for on-lending etc

Channels of Direct Agri. Advances : 

Channels of Direct Agri. Advances Kisan Credit Card. Green Credit Card Financing Farm Machinery. Financing to Dairy/Animal Husbandry Project. Minor Irrigation Schemes. Hi-Tech/Big Agricultural Project Financing. Finance against Warehouse Receipt of Agri. Produce.

Small Enterprises : 

Small Enterprises Direct Finance to Small Enterprises Manufacturing Enterprises Small (manufacturing) Enterprises Micro (manufacturing) Enterprises Service Enterprises Small (service) Enterprises Micro (service) Enterprises small road & water transport operators, small business, professional & self-employed persons, and all other service enterprises. Khadi and Village Industries Sector (KVI) Indirect Finance to Small Enterprises Advances to cooperatives of producers in the decentralised sector viz. artisans village and cottage industries. Persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. Loans to NBFCs for on-lending to small and micro enterprises

Retail Trade : 

Retail Trade Purpose For running retail business dealing in essential commodities Limit Up to Rs. 20 lakh Eligibility Retail traders Fair price shops Consumer co-operative stores Private retail traders

Micro Credit : 

Micro Credit Loans of Very small amount Maximum Rs. 50,000 per borrower Directly to individual Or indirectly through a SHG/JLG mechanism Or to NBFC/MFI for onlending

Education Loan : 

Education Loan Purpose For Higher Studies Limit Up to Rs. 10 lakh for studies in India Up to Rs. 20 lakh for studies abroad Eligibility Individual NBFCs for on-lending to individuals

Housing Loan : 

Housing Loan Purpose Purchase/ Construction of dwelling Repairs of Damaged dwelling Limit Up to Rs. 20 lakh Eligibility Individual

Thank You : 

Thank You