SBI Vijayawada gets nod for 4 mortgage loan schemes

Four mortgage loan schemes conceived by the Vijayawada zone of State Bank of India (SBI) have been approved by the bank's head office for implementation of the same by its branches throughout the country.

The loan schemes, the limits of which range from Rs 25,000 to Rs 5 crore, and covering all categories of borrowers in trade and service sectors, are under implementation in Andhra Pradesh and Kerala on a pilot basis.

The schemes are based on mortgage, turnover, financials and credit risk assessment. While the first scheme is totally mortgage based, the other three are activity related with mortgage obtained as additional security.

Detailing the activities of the zone's187 branches in Krishna, Guntur and West Godavari districts, SBI deputy general manager N V Suryanarayana Rao told Business Standard that the zone mobilised deposits to the tune of Rs 254 crore in 2004-05, taking the total to Rs 2,515 crore. The bank would target mobilisation of Rs 374 crore deposits in 2005-06, he added.

"The bank's advances touched Rs 2,572 crore of which Rs 714 crore was disbursed in 2004-05. Sixty six per cent of the advances went to the priority sector comprising agriculture, small-scale industries, small business, housing, education and export finance. The bank plans to advance Rs 670 crore in 2005-06," Rao said.

The bulk of advances, amounting Rs 240 crore (target Rs 100 crore), went to agriculture, taking the cumulative figure in the sector to Rs 775 crore, Rao said, adding that Rs 205 crore had been earmarked for the same sector this fiscal.

About 5,750 housing loans worth Rs 189 crore was sanctioned in 2004-05 and Rs 216 crore allocated under the same head this year.

The bank also advanced Rs 37 crore to 1,504 education loans, Rs 21 crore to small scale industries (Rs 40 crore allocation this fiscal), Rs 4.48 crore to 936 unemployed youths under the PMRY, and Rs 50.72 crore to 10,660 self-help groups.

Rao said that the bank had set up a Retail Assets Central Processing Centre (RACPC) and a Small Enterprises Credit Cell (SECC) for speedy sanction of various loans.

"Under the first cell, car loans would be sanctioned on the same day, educational loans in five days and housing loans in six days. The second cell would speed up loan applications received from small and medium business people with a turnover of Rs 5 crore and credit requirement of up to Rs 1 crore. A Central Credit Processing Cell (CCPC) monitors speedy processing of all loans," he said.