A person applying for a loan from a PADB has to first become an A Class Member of that PADB by purchasing five shares of Rs. 100/- each. A person can become a member and enjoy certain rights without applying for loan. The Application for membership and loan can be submitted in the PADB simultaneously or separately. All the applications have to be addressed to the Manager of the Bank in the prescribed format, which is provided free of cost by the PADBs. Every application for loan is disposed off by the Bank within a period of 15 days but applications from women are disposed off within 7 days.
Now the Bank has laid more emphasis on small loans so as to cover large number of farmer families.
Maximum Share Money allowed – Rs. 50,000/-
REQUIREMENTS OF A CLASS MEMBERSHIP
The following requirements have to be satisfied by a prospective member :-
- Should ordinarily reside in the area of operation of the Bank.
- Should be of 18 years of age and of sound mind.
- Should be an owner or cultivator of agricultural land or landless agricultural labourer residing within the area of operation of the Bank.
- An Admission fee of Rs. 5/- alongwith 5 shares of value Rs. 100/- each has to be paid by the member.
The application for membership should be submitted by the prospective member personally.
Central Cooperative banks, Cooperative farming Societies, Tubewell Irrigation Cooperative Society and such other kinds of Societies may also become the members of the Bank subject to the approval of the Registrar.
All the applications for loans are to be addressed to the Manager of the Primary Bank in the prescribed format available free of cost at every PADB. Every application should be accompanied by the title deed and other documents relating to the properties proposed to be offered as security as laid down by the Head Office. The Banks advance loans on the basis of schemes defined by SADB and approved by NABARD. Alongwith the loan application, the applicant shall deposit with the Primary Bank a loan application fee of Rs. 1000/- for loans above 5 lacs, Rs. 500/- for loans above 3 lacs and upto 5 lacs, and Rs. 100/- for loans upto 3 lacs.
No loan fee is charged from women applicants.
Other documents required to be submitted at the time of applying for Loan:-
- Loan Application form duly filled alongwith 4 latest passport size photographs of the prospective borrower duly attested by the Sarpanch/Lamberdar of the village or the Manager of the PADB.
- Copy of the latest Fard Jamabandi (Record of Rights) of the land being offered as security alongwith the copy of relevant Khasra Girdawari intimating the names of the persons cultivating the land, Mutation Certificate if any, relating to the said land.
- Estimate of the Agricultural implements/machinery/assets to be created with the Bank Loan.
In case the loan is for redemption/purchase of land, a copy of the Mortgage Deed and Sale Agreement respectively is required.
The applicant is also required to inform the PADB about his Saving Bank Account Number (where the payment will be made directly to the borrower).