Secured Loan to Real Estate (for Small Builders and Contractors)

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 ` 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. 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, 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.