Bank says I need security for a larger farm loan. I heard there is a guarantee scheme that removes the need for collateral. How does it work for me?
A credit guarantee works behind the scenes by insuring the lender against your default, which lets the bank lend without taking your land as security. Under such schemes a guarantee fund covers a large part of the loan if it goes bad, so for the bank the loan is partly protected even with no collateral, and it can therefore sanction a collateral-free amount above the basic RBI limit. The benefit to you is access to a bigger loan without mortgaging land, though the lender may pass on a small guarantee fee. Dedicated guarantee facilities exist for specific borrowers, such as FPOs and certain agri and allied activities, and the RBI itself mandates collateral-free agri lending up to a ceiling. To use it, ask your bank whether your loan and your borrower category fit an available credit guarantee scheme, since not every loan qualifies. Confirm the current guarantee cover, the eligible loan size and any fee with your bank.
Mere bade loan par bank ne security maangi thi, phir credit guarantee scheme ke through bina land ke loan mil gaya. Bank ne ek chhoti guarantee fee li. Apni borrower category guarantee me aati hai ya nahi, bank se pucho.
The benefit for me was a bigger loan without mortgaging land, but not every loan qualifies, so ask your bank which scheme fits your category, like FPO or specific allied activity. The RBI collateral free limit also helped for the basic amount. Confirm the cover and fee with your bank.
A pitfall is assuming the guarantee removes all conditions, the bank still checks your repayment capacity and project. Keep your land records and accounts clean. Confirm the eligible loan size and any guarantee fee before counting on it.
Dhyan rakho ki guarantee bank ko surakshit karti hai, tumhe nahi, isliye loan na chuka paye to bhi tum poori tarah zimmedar rehte ho aur CIBIL kharab hota hai. Bahut log samajhte hain ki guarantee wala loan chukana zaroori nahi, yeh galat hai. Guarantee fee bhi tumse hi lagti hai, isliye actual rate aur fee bank se confirm karke hi aage badho.
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