FAQs

1.Is the Apex Bank providing term loan for all types of Projects/establishment of Industries/ factories?

Presently, the bank is providing term loan/block capital under consortium arrangement for establishment of sugar factories both under cooperative and private sector.

2. What are the securities, which need to be obtained for term loan?

Creation of charge on pari passu basis on land & building and plant & machinery and other assets created/to be created.

3.What is the minimum share capital contribution prescribed for promoters & members?

The prescribed minimum share capital contribution by promoters & members is 40% of the approved project cost.

4.What is the maximum term loan that could be sanctioned to a project by the banks/FIs?

The maximum term loan that could be sanctioned to a project by all consortium bankers/FIs should not exceed 60% of the approved project cost.

5.Is the Apex Bank providing working capital loan to sugar factories/other institutions?

The Bank is providing working capital loans to cooperatives as well as private sugar factories and other institutions like FCI, IFFCO, and KOF etc. under consortium arrangements against pledge of stock.

6.What is the margin prescribed for working capital to sugar factories?

At present the margin prescribed by the Bank for working capital to sugar factories is 15% and the bank is at liberty to reduce/increase the margin.

7.What is the prescribed overall exposure limit to sugar industry?

The overall exposure by SCB/DCCB to the sugar sector should not exceed 40% of the Maximum Net Internal Lendable Resources (ILR) reached by the respective Bank during the previous financial year.

8.What is the prescribed unit-wise exposure limit?

a) The total lending by SCB to a cooperative/an outside cooperative unit should not exceed 25% of the capital fund of SCB.

b) The total lending by DCCB to a cooperative unit should not exceed 50% of the capital fund of DCCB.

c) The total lending by DCCB to a outside cooperative unit should not exceed 25% of the capital fund of DCCB.

9.What is the prescribed exposure limit to units outside the cooperative fold?

The total exposure by SCB/DCCB to the units outside the cooperative fold including individual loans should not exceed 25% of the maximum ILR reached during the previous financial year.

10.What is the rate of interest prescribed for term loam and working capital loan?

The present rate of interest for term loan is 13.50% p.a. and for working capital is 13% p.a. and it is subject to change from time to time at the discretion of the Bank.

11.What are the documents/information required for sanction and release of term loam & working capital loan?

The documents/information required for sanction and release of term loam & working capital loan is listed in the policy and operational guidelines prepared by Apex Bank.

12. Does the Bank provide loans to National / State level Institutions?

Under consortium arrangements the bank is providing working capital loans to National/ State level institutions like IFFCO, FCI, CAMPCO, KSCARD Bank, KCCF, KOF etc.

13. Is the Bank providing loans to Employees’ Cooperative Societies?

The Bank is directly providing working capital loans to Employees’ Cooperative Societies formed by Employees of CQAL Campus, KCCF, KSRP, and KSCARD Bank.