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  How To Get Loans- Punjab:


The Punjab State Cooperative Agriculture Development Bank Ltd has over 80 branches spread over in the 14 districts of the state.


Long term credit is linked with the shares. For getting long term loan, the prospective borrower has to become an A Class member of the Primary Agriculture Development Bank of his area. Any landowner or landless agricultural laborer residing in the area of operation of a Primary Agriculture Development Bank can become its member/share holder if he is not less than 18 years of age and is of sound mind.

For becoming a member he is required to submit membership form along with passport size photograph attested by the village sarpanch of lambardar or by the Primary Agriculture Development Bank manager and deposit Rs.300/- in token of purchase of minimum shares of Rs100 each and Rs.5 as admission fee.

Other Conditions of Loan :-

  • Loan can be advanced only against the security of his agricultural land. Loan can also be taken against the security given by a third party. Further, the loan is advanced in the ratio of 80% of the value of the land is fixed by the Bank on an average basis by keeping the average sales statistics as per revenue record.

  • Loan is advanced according to the loan policy of the Bank for every purpose of loan.

  • Loan is advanced at 20 times of the shares purchased by a member. In other words, the member can purchase maximum shares of Rs.50,000/-and can avail loan facility upto Rs.10.00 lacs.

  • The prospective loan is required to make down payment from 5% to 15% including 5% as share money on his own share in the investment, according to the purpose of loan.

  • Long term loan is advanced at simple rates of interest according to the quantum of loan, which is as under :-

Amount of loan

Rate of Interest

Up to Rs.25,000


Rs.25,001 to Rs.2 lakh


Above Rs. 2 lakh


Time Schedule For The Disposal Of Loan Cases :-

Field Officer verifies the case within 7 days and sends his report to the Primary Agriculture Development Bank for sanction of loan case.

The Primary Agriculture Development Bank takes three days for legal scrutiny as well as its sanction and forwards the same to the field officer for Loan Sanction Order (LSO) compliance.

The Field Officer takes three days for the LSO compliance and returns the case to the Primary Agriculture Development Bank for disbursement of the loan amount.

The Manager takes two days for the disbursement of loan case.

In this way, the loan case is disposed off within 15 days from the date of receipt in the Primary Agriculture Development Bank.



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