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Loan Quantum
Interest On Loan
Interest on Capital Deposit
You are aware that the loan quantum has been increased to Rs. 12,00,000/-. Thus our society is one amongst few where the maximum limit of loans sanctioned is Rs. 12,00,000/- (Rupees Twelve lakhs). The change in quantum was implemented from 16th April 2013. The total loan sanctioned during the year was Rs.86.37 crore. As on 31st March 2015 the total loan sanction to the members is Rs.156 crore.
Last year the interest rate on loan remained unchanged (Avg. 9.479%) which was much lower than the market rate. During the reporting year interest rates in the market were rising constantly Reserve Bank of India has intervened on number o occasions to restrict the rising inflation. However this managing Committee takes pride in the act that we could strike the balance between rates on deposits from members and rates on loans given to members despite frequent changes in interest rate. Timely decisions taken in this area proved beneficial to the working of the Society .
In the month of june, 2011 we reduced the interest rate and now interest rate on loan up to 5,00,000/-is 9.25% and 9.5% for the loan above 5,00,000/- Thus the average interest rate on the loan of Rs. 10.00 lakhs is 9.375 % which is lowest in the banking Industry. This was Possible only because continuous monitoring diligent deployment of funds. Interest rate on increased quantum of loan of Rs. 2,00,000/- is 10%. Thus average rate of interest on the entire loan of Rs. 12.00 lakhs is 9.48%.
Last year 8% interest was paid on Capital Deposit and subsequently an Additional Incentive of 25 % on the amount of interest was paid. Thus the total interest on Capital Deposit was paid @ 10% , which is sizable and comparatively high and attractive vis-à-vis market condition . This year also we have paid interest @8% and propose to pay 12.50% additional incentive, which means total interest of 9% on Capital Deposit.