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Kudumbasree Cash Credit to Societies

Only Primary Agricultural Co-Operative Credit societies within the district are eligible for this type of loan facility.

Limit is sanctioned on the basis of outstanding amount of SHG loans issued to their members.

Limit sanctioned for a period of one year.

Interest is calculated on daily products basis.

Penal interest @ 2% will be charged when the account becomes overdrawn(for the overdrawn amount only)

After the expiry of CC limit period 2% additional interest will be charged over the contract rate.

Interest debited on last day of every quqrter, i.e. March, June, September and December.

Withdrawals are allowed only through cheque book.

Purpose: These types of loans are issued for the purpose of issuing SHG loans to their members.

The Society has to submit balance sheet, profit and loss account

Security: Secured.

Coverage statement will be submitted before 5th of every succeeding month.

Drawing Power Limit (DPL) is restricted as 90% of coverage.

The Society is directed to make all the transactions relating to crop loan through this account only.

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