i.

Eligibility

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Any bonafide Member of the Bank, including Nominal member.

ii.

Type of Facility

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Loan and/or Overdraft limit.

iii.

Purpose

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For any legitimate requirement of funds except for speculative purposes and for purchase of  various small saving instruments , like ;  KVPs., NSCs etc. which are proposed to be pledged with the bank.

iv.

Margin

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10% of Face value of the instrument if repayment of  the same is due within two years from date of sanction and 15% of Face value in all other cases.

v.

Rate of Interest

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As per Bank’s rules.   

vi.

Other Charges

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As per Bank’s rules.

vii.

Repayment

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As required by the borrower, but not later than the date of maturity of the instrument/s pledged with the Bank.

viii.

Security

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Pledge of Govt. Security like ; NSCs,  KVPs,   other Bonds/Debts Instruments issued by Central or any  State Govt.  PSU etc in the name of borrower or any third party, who shall require to stand as surety for the facility.

ix.

Other conditions

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Bank’s charge on the instrument to be registered  with issuing authority of the respective instrument  before disbursement of credit facility.