i. |
Eligibility |
- |
Any individual, group of individuals, Proprietorship, Partnership firm, companies who is/are a bonafide member of the bank and is/are undertaking small construction work on their own and no advance payment is received by them for the purpose, whose annual turnover does not exceed Rs.200.00 Lacs. |
ii. |
Purpose |
- |
For working capital requirement only for construction of residential or commercial buildings. |
iii. |
Nature of facility |
- |
Term Loan (WCTL) and /or Cash Credit |
iv. |
Securities (Primary) |
- |
Hypothecation of construction materials |
v. |
Collateral Security |
- |
As per merit of each case by way of mortgage of immovable property or any other security acceptable to the bank. |
vi. |
Sureties |
- |
At least two sureties, subject to satisfaction of bank. |
vii. |
Margin |
- |
Minimum of 40 %, depending on merit of each case. |
viii. |
Limit |
- |
Upto maximum of 25.00 Lacs subject to viability of the project and repaying capacity of the prospective borrower. |
ix. |
Period |
- |
Repayable within a maximum period of 60 months subject to the maximum of term of completion of project, if any. |
x. |
Rate of Interest |
- |
As per Bank’s guidelines from time to time, and Levy of penal interest for non compliance of terms of sanction, as per bank’s rules.
|
xi. |
Insurance |
- |
All primary and collateral securities are to be adequately and comprehensively insured with Bank’s clause at party’s cost. |
xii. |
Other conditions |
- |
Wherever land is accepted as collateral, valuation of such land should be at the current market price only. |
