IOB URBAN HORITCULTURE

1. What is the purpose of this scheme?

To extend Retail credit facility on easy terms for raising Kitchen Gardens, Flower Gardens, Small Orchards, Roof Gardens and landscaping

2. Who are the eligible for applying the loan under this scheme?

For Individuals: (a) Should possess independent house having at least 500 sq. ft. of open space for gardening/for raising roof garden/similar area of open unencumbered roof space. (b). Should have regular source of income i.e. Salaried persons/Professionals/Business men

For Non Individuals(Corporate Clients, privately owned schools, offices, guest houses, hospitals, hotels, Proprietary or Partnership firms, Trusts and Societies etc.): (a).Should have account and satisfactory relationship with our bank. (b).Should have at least 1000 sq. ft of open space for gardening. (c). Borrowing institution should have ownership or long term lease (at least 5 years) on the property.

3. What is the Type of Facility?

Loan sanctioned as term loan

4. What is margin requirement?

Loans Upto Rs.1.60 Lakhs : Nil

Loans above Rs.1.60 Lakhs : 15% Margin

5. What is the maximum Quantum of loan under this scheme?

For Individuals - Minimum Rs.33000 to Maximum Rs.2.50 Lac

For Non-Individuals: Minimum Rs. 1 Lac to Maximum Rs.25.00 Lac

(Assessment is based on unit cost, which is Rs.33000/-per 1000 sq. Ft (at present) Less applicable margin)

6. What are security requirements for loan under this scheme?

Prime Security: Hypothecation of Plants & Garden equipment.

Collateral Security: For loans up to Rs.1.60 Lac - Waived, For Loans Above Rs.1.60 Lacs: (a)Employees: Undertaking from Employer for routing salary through Branch backed by standing instructions. (b) For Other Individuals: Third party Guarantee of an individual with adequate worth not less than Borrower. (c) For Institutions: Collateral security valued at least 50% of the loan amount besides personal guarantee of Partners/Trustees/Promoters (Directors) (d) For Retired IOBians : Standing instructions for deduction of EMIs pension being routed through the Branch. At least one legal heir should be a co-obligant /guarantor for the loan.

7. What is the Repayment period for this loan?

Repayable in 3 years in monthly EMI without holiday.

8. Any other important features?

(a)Scheme is not meant for commercial Horticulture, for which a separate scheme is available. (b)Tenants residing in private rented houses should not be financed. However, owners can be financed even if they are not staying in the house. (c)Applicants should not be defaulters in any financial institutions.