Ordinary Debentures (OD)
The Bank has started extending long term credit facilities to its members through Ordinary lending programme. The fund raised by floating Ordinary Debentures is used for sporadic lending in farm sector. A part of the loan not exceeding 10% of the total advances in each year could be advanced for redemption of prior debts. The lending under ordinary programme is supplementary to schematic lending, wherever investment proposals are not eligible to fit into schematic lending disciplines.
Special Development Debentures - SDD
The Kerala State Co operative Agricultural and Rural Development bank is one of the major agencies in the credit delivery system for providing term loans for agriculture and allied activities in the country. The bank raises resources mainly by way of floatation of debentures.Special Development debentures are floated by the bank under various special schemes.It includes Farm sector,Non farm sector which includes Nabard Housing Schemes also.The Special development debentures which forms the major source of funds are contributed by NABARD,ie upto 100%,95% and 90% and the remaining portion being contributed by GOI and GOK depending on various schemes.For Non farm and Housing schemes the sole contributor is NABARD and the100% of refinance is extended by NABARD itself. The Special Development Debentures are guaranteed by the State Government as to the payment of interest and repayment of principal on due dates. Since the bulk of the resources are raised by floatation of debentures, under the provisions of bye-laws are required to be backed by unencumbered effective mortgages. The Bank is required to collect the mortgages in advance of the floatation of debentures by granting loans to members for different developmental purposes from out of its own resources or by raising interim finance
Special Rural Housing Debentures- SRHD
The loans provided to ultimate borrowers through the affiliated PCARD Banks in the state, is being considered for 100% refinance support from National Housing Bank, on flotation of debentures (i.e. special rural housing debenture). The purchase of SRH Debentures floated by the KSCARD Bank on the strength of effective Mortgages collected will be purchased by National Housing Bank, on ensuring that the State Government stands guarantee for the repayment of refinance amount with interest, there on. The loan under the scheme shall cover, construction of new house and upgradation/ major repairs.
The PCARD Banks affiliated to the KSCARD Bank having a recovery level of above 60% as on 30th June of the particular year, will be eligible for refinance support from NHB on flotation of Special Rural Housing Debenture.