(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 : Avasar Mutual Benefit Nidhi 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 Avasar Mutual Benefit Nidhi Limited 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 Avasar Mutual Benefit Nidhi Limited. five percent extra rate of interest offered on deposits by the Avasar Mutual Benefit Nidhi Limited 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 Avasar Mutual Benefit Nidhi Limited 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 Avasar Mutual Benefit Nidhi Limited from its members are more than two crore rupees but are twenty crore rupees or less;
(C) Twelve lakh rupees, where the deposits of Avasar Mutual Benefit Nidhi Limited from its members are more than twenty crore rupees but are fifty crore rupees or less;
(D) Fifteen lakh rupees, where the deposits Avasar Mutual Benefit Nidhi from its members are more than fifty crore rupees:
Provided that no Avasar Mutual Benefit Nidhi Limited shall give to any member/shareholder loans and advances exceeding seven lakh fifty thousand rupees
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