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Loans

(i) Give loan to its shareholders or members against the following securities:-
(A) Gold, silver and jewellery
Provided that the period of such loan shall not exceed one year.
(B) Immovable property;
Provided that the loan against immovable property shall not exceed fifty percent of the overall loan outstanding on the date of approval by the board and the individual loan shall not exceed fifty percent of the value of property offered as security. The period of such loan shall not exceed five years.

Explanation: ICL Mutual benefits Corporation Limited shall bring down the ratio of loan against immovable property to fifty percent of the overall loan outstanding within two years from the date of this notification;
(C) Fixed deposit, KisanVikasPatra/National Savings Certificate Scheme/insurance policies and other Government Securities;
Provided that such securities shall be pledged with the ICL duly discharged and the lock-in period of such securities shall not fall beyond the loan period or one year whichever is earlier.

(ii) The rate of interest charged on loan given by ICL Mutual Benefits Corporation Ltd. five percent extra rate of interest offered on deposits by the ICL and shall be based on reducing balance method;

(iii) Give loan to any member/shareholder subject to the following ceiling on each loan:
(A) Two lakh rupees, where the total amount of deposits of ICL from its members are two crore rupees or less;
(B) one percent of the total deposits or seven lakh fifty thousand rupees, whichever is less, where deposits of such ICL from its members are more than two crore rupees but are twenty crore rupees or less;
(C) Twelve lakh rupees, where the deposits of ICL from its members are more than twenty crore rupees but are fifty crore rupees or less;
(D) Fifteen lakh rupees, where the deposits ICL from its members are more than fifty crore rupees:
Provided that no ICL shall give to any member/shareholder loans and advances exceeding seven lakh fifty thousand rupees