IPSB VYAPAR SCHEME – Indraprastha Sehkari Bank Ltd


Nature of Facility	Overdraft or Loan
Purpose	Working capital requirements; Non-Fund based facilities (Bank Guarantee and Letter of Credit)
Limit	Minimum: ₹ 2.00 Lacs Maximum: Subject to the exposure limit of the Bank
Eligibility	Individuals, Proprietorship, Partnership concerns, Firms, Private Ltd. Companies (HUF & Public Limited Companies are not eligible) Business unit should have been established for a minimum period of 1 year Trading units by existing customers or their close relatives can be considered even if less than 1 year old
Method of Assessment of Working Capital Limit	20% of projected sales (subject to verification of sales tax returns) OR Advance value of the collateral assets, whichever is lower In case of Overdraft: If credit turnover in preceding month is not sufficient to cover interest, recover interest separately
Margin	35% on market value of immovable property (as per recent valuation) 15% on Bank’s own FDRs 15% on surrender value of Life Insurance Policies, NSCs
Period	12 months subject to annual review
Repayment	Maximum 72 EMI (depending on repayment capacity)
Security	Mortgage of non-encumbered freehold self-occupied property Property must be in name of borrower/co-borrower/joint owner/proprietor/partner/director or close relative Loan may be considered against existing charged property if residual value is available
Valuation	Valuation report to be obtained from Bank/Govt approved valuer Revaluation every 2 years Valuation fee borne by applicant
Insurance	Mortgaged property to be insured; insurance against stock may also be a sanction condition
Sureties	At least two sureties of good means and reputation, to the bank’s satisfaction
Other Conditions	Borrowers to route sales and transactions through Overdraft/Current A/c Branch to ensure end-use of funds Stock statements to be submitted twice a year (August & February)

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