Banks have been given freedom to formulate their own
lending norms keeping in view ground realities. They have been asked to devise
appropriate loan and savings products and the related terms and conditions
including size of the loan, unit cost, unit size, maturity period, grace
period, margins, etc. Such credit covers not only consumption and production
loans for various farm and non-farm activities of the poor but also include
their other credit needs such as housing and shelter improvements.