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Security

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Security

The intending borrower is advised to visit the nearest MCB Branch for information. This will enable him to discuss his / her requirements and have first hand information on every aspect of the process through face to face interaction with Agriculture Marketing Officer (AMO), Credit Officer or Branch Manager.

Bank shall consider only those credit proposals for financing which qualify. However, as a general rule, bank will always obtain adequate security / collateral, in accordance with sound and prudent banking practice, detailed as under.

a) Mortgage of Agriculture land through Pass Book system.

Note: Financial accommodation against security of third party pass book is not permissible under rules for Agriculture Purpose Act 1973.

                                                                     Or

b) Mortgage of rural, urban or commercial property.

                                                                     Or

c) Pledge of SSC (Special Saving Certificates) / DSC (Defense Saving Certificates), cash collateral, securities, lien on bank deposit.

                                                                     Or

d) Any other tangible collateral security acceptable to the bank.

                                                                     Or

e) Charge on Deferred Payment Voucher issued by processing units / companies / NGOs (Non Government Organisations) having approved limit for issuance of Deferred Payment Voucher.

                                                                     Or

f) Group Guarantee / Recognized NGOs (Non Government Organisations) offered Bank Guarantee.

                                                                     Or

g) Registered / Equitable mortgage or charge creation on processing units

                                                                     Or

h) Third Party collaterals may be accepted (other than Pass Book system).

Title of the securities offered to the Bank must be clear, absolute and
transferable.

Valuation of Properties

The property offered as security outside the Pass Book will be valued by bank's approved evaluators. Branch Manager / officer personally visits the Agriculture land / property before accepting the same as security. The Market Value / FSV (Forced sale value) of agriculture land or rural/urban property shall also be assessed by Branch Manager / AMM / AMO as independent inquiries to ensure that market price is realistic and not exaggerated.
Market value of Agriculture land may be accepted (calculated by revenue department) taking three years average "Baiy" of same locality.


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