i. |
Eligibility |
- |
Applicant member should be in their line of business for at least 2 years. |
ii. |
Purpose |
- |
For working capital requirements only. |
iii. |
Nature of facility |
(a)
(b)
|
The credit facility may be sanctioned either in the form of an overdraft or as a loan. Method of Assessment of Working Capital:
The credit limit is to be considered as under :-
Advance value (market value – margin) of the collateral assets to be charged
or
20% of the projected Sales subject to verification of VAT/Sales Tax Returns of previous years/quarters.
Whichever is lower of column (a) or (b). |
iv. |
Limit |
- |
Minimum : Rs. 5.00 Lacs
Maximum : Rs. 75.00 Lacs |
v. |
Margin |
i)
ii) |
40% on market value of immovable property in case of residential properties.
50% on market value of immovable property in case of commercial properties.
|
vi. |
Security |
i)
ii) |
Primary : Hypothecation of stocks and Book Debts
Collateral : Tangible collateral securities in the form of mortgage of non-agricultural freehold land and buildings, National Savings Certificates, our Bank Term Deposits, Life Insurance Policies (Surrender Value) etc.
|
vii. |
Period |
- |
Overdraft : 12 months subject to annual review
Loan : Maximum 72 months |
viii. |
Rate of Interest |
- |
As per Bank’s Rules, subject to penal interest for non-compliance of terms of sanctions
|
ix. |
Insurance |
- |
Comprehensive insurance of immovable property with Bank’s clause at party’s cost.
|
x |
Other Conditions |
- |
Comprehensive insurance of immovable property with Bank’s clause at party’s cost.
|
