Chapter 2 – Priority Sector Lending

Priority Sector Lending

Category

Domestic Commercial Banks/

Foreign bank 20 Branches and above

Foreign bank less than

20 Branches 

Total Priority Sector

40 % of ANBC Or Credit Equivalent 

Amount of Off-Balance Sheet Exposure

40 % of ANBC Or Credit 

Equivalent Amount of Off-Balance Sheet Exposure

Total Agriculture

18 % of ANBC Or Credit Equivalent 

Amount of Off-Balance Sheet Exposure

No Specific Target

Micro Enterprise

7.5 % of ANBC Or Credit Equivalent 

Amount of Off-Balance Sheet Exposure

No Specific Target

Advance to Weaker 

Section

10 % of ANBC Or Credit Equivalent 

Amount of Off-Balance Sheet Exposure

No Specific Target

 

  • Agricultural Finance
  • Education Loan – Upto Rs.10 Lakhs
  • Housing Loan

            Metropolitan – Rs.35 Lakhs (Cost of Dwelling – Rs.45 Lakhs)

            Other – Rs.25 Lakhs (Cost of Dwelling – Rs.30 Lakhs)

            For Repair – Metropolitan – Rs.5 Lakhs & Other – Rs.2 Lakhs

  • Khadi and Village Industries Sector
  • Loan sanction by banks to MFIs for on-lending to MSME sector
  • Overdraft of Rs.10,000/- under PMJDY – Household income does not exceed  Rs.1 Lakh for ruler and Rs.1.6 Lakhs for non-ruler
  • Factoring transaction With Recourse basic
  • Social Infrastructure – Rs.5 Crore
  • Renewable Energy – Rs.15 Crore
  • Loan up to Rs.50,000/- to individual or SHG/JLG – Household income does not exceed Rs.1 Lakh in ruler and Rs.1.6 Lakhs in non-ruler
  • Loan to Distressed Person up to Rs.1 Lakh to prepay their debt to non-institutional lenders

MSMEs

Weaker Section Under Priority Sector

  • Small and Marginal Farmers
  • Artisans, Village and Cottage Industries- Credit limit do not exceed Rs.1 Lakh
  • Beneficiaries under Government Sponsored Scheme – NRLM, NULM & SRMS
  • Scheduled Castes and Scheduled Tribes
  • Beneficiaries of Differential Rate of Interest (DRI) scheme
  • Self Help Groups
  • Distressed farmers indebted to non-institutional leaders
  • Distressed persons with loan amount not exceeding Rs.1 Lakh per borrower to prepay their debt to non-institutional leaders
  • Individual Women beneficiaries up to Rs. 1 Lakh per borrower
  • Persons with Disabilities
  • Overdraft upto Rs.10,000/-under PMJDYwith age limit 18-65 years
  • Minority Communities
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