Scheme for financing of Fixed Assets (for commercial use)

i.

Eligibility

–

Any member of the Bank engage in any type of trade or services or profession.

ii.

Purpose

–

For purchase of Machines, Vehicles of all types, Office equipment etc. for business use and construction/repair/renovation or purchase of factory land and building or office premises.

iii.

Nature of facility

–

Term Loan

iv.

Securities (Primary)

–

Hypothecation of assets purchased out of bank finance. In case of finance for construction/repair/renovation of building, mortgage of the relevant property or any other suitable security acceptable to the bank, if the relevant property is not found to be suitable by the Bank.

v.

Collateral Security

–

As per merit of each case by way of mortgage of immovable property or charging of any other security acceptable to the bank.

vi.

Sureties

–

At least two sureties, subject to satisfaction of bank.

vii.

Margin

–

Minimum of 15 %, depending on merit of each case.

viii.

Limit

–

Need based credit limits to be assessed as per Bank’s policy and repaying capacity of prospective borrower. Subject to exposure limit of the bank.

ix.

Period

–

Repayable within a maximum period of 120 months. CEO is authorized to relax the period of repayment on merits of individual case.

x.

Rate of Interest

–

As per Bank’s guidelines from time to time, 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

a)

b)

Payment direct to the  Vendor for full cost of the Machine/Article as per Performa Invoice, subject to recovery of margin money from the borrower.

Copies of Invoice and Receipt  to be obtained and kept on record till the liquidation of Bank’s entire dues.