Canara

Security

Loan Quantum

Security to be stipulated

For loan upto Rs.2.00 lakhs

Hypothecation of crops/assets created out of our finance.

For Loan above Rs 2.00 laks

• Hypothecation of crops/ assets created out of our finance.
• Mortgage of landed properties. Value of security (Post development value) should be minimum of 125% of the loan amount. However, if the sanctioning authority feels that there is need for additional collaterals depending on risk factors, the same may be insisted.
• Existing borrowers where agricultural land is already mortgaged would be continued as per existing terms and conditions.
• In case, party is already having a development/ investment loan, and total exposure including the proposed exposure exceeds Rs. 2.00 Lakhs, mortgage of landed property is to be stipulated in addition to hypothecation of crops cultivated.
• Development loans above Rs 15000/- and upto Rs 2,00,000/-where the land is not obtained as collateral in terms of the guidelines, branches are to obtain Photostat copies of available title deeds duly verifying the same with the original. Also encumbrance certificate for the past 13 years should be obtained and it should be ensured that there are no prior encumbrances on the lands owned by the farmer.
• For development loans under government sponsored schemes, the security norms as the respective scheme will be applicable.