RPCD.No.PLNFS.BC.88/PS.72/88-89

March 25, 1989
Chaitra 4, 1911

All Scheduled Commercial Banks

Dear Sir

Common Loan Application Forms

     Please refer to our circular RPCD.No.BC.29/PS.22-84 dated 16 March 1984 regarding Guidelines for Advances to Priority Sector, wherein we had also prescribed the formats for loan application forms to be used in the case of SSI units. A Working Group consisting of representatives of Reserve Bank of India, State Bank of India, Bank of India, SIICOM and Maharashtra State Financial Corporation was constituted by Industrial Development Bank of India in January 1987 for standardisation of loan application forms for use by SFCs, SIDCs and banks. The Group has recommended common application forms for the following categories of SSI borrowers: -

    1. For total advances upto Rs.50,000/- (including composite loans)

    2. Total assistance above Rs.50,000/- and upto Rs. 2 lakhs

    3. Total assistance above Rs.2 lakhs and upto Rs. 10 lakhs and

    4. Total assistance above Rs.10 lakhs.

    These application forms are to be used where assistance is by way of either term loan or working capital or both and are applicable to new projects, expansion, diversification and modernisation of existing projects. IDBI has advised SFCs and SIDCs to adopt these application forms with effect from 1 July 1988.

  1. The forms for (i) total assistance upto Rs.50,000/- (including composite loans) and (ii) for total assistance above Rs.50,000/- and upto Rs.2 lakhs are mostly similar to the forms presently prescribed by us for commercial banks in terms of our circular RPCD.No.BC.29/PS.22-84 dated 16 March 1984. As such it has been decided that commercial banks may continue to use the existing forms.

  2. Copies of the new forms for total assistance (a) above Rs.2 lakhs and upto Rs.10 lakhs and (b) above Rs.10 lakhs are enclosed and these may be introduced by you with immediate effect so as to have uniformity among banks and financial institutions. It should be noted that these application forms will not apply where only renewal of existing working capital limits is required. Banks may use their own forms in such cases.

  3. Please acknowledge receipt and inform us of the action taken at an early date.

Yours faithfully

Sd/-
(S. Sankar)
Deputy Chief Officer



Form A

Form B

Form

Form

Declaration

Declaration

ANNEXURE I, II, III, IV

Proforma: I, II, III, IV, V, VI, VII, VIII, IX, X, XI

Guidelines for filling up the application form

Guiidelines for filling up the application form

List of Enclosures

Check List For Enclosures