Overdraft (Mortgage)

i.

Eligibility

–

Any bona fide individual/firm member engaged in any business or profession, or service of any type.

ii.

Limit

–

Need based credit requirements to be assessed as per bank’s rules applicable for Working Capital finance, subject to Exposure of the Bank.

iii.

Purpose

–

Pre-sale Working Capital requirement of the business entities who do not have significant amount of tangible Current Assets to offer as primary security like Service Providers, Contractors, Chartered Accountants, Advocates, Doctors etc.

iv.

Nature of facility

–

Overdraft

v.

Primary Securities

–

           —-NA—-

vi.

Collateral Securities

–

Mortgage of freehold  property/ies  or pledge of any other tangible security as acceptable to the bank, owned by the borrowers or their sureties

vii.

Sureties

–

At least two sureties of good means and reputation, subject to the satisfaction of the bank.

viii.

Margin

–

35 % of the value of security.

ix.

Period

–

12 months, subject to review thereafter.

x.

Rate of Interest

–

As per Bank’s guidelines from time to time including penal interest for non-compliance of terms of sanction as per bank’s rules.

xi.

Insurance

–

All collateral securities are to be insured adequately and comprehensively with Bank’s clause at party’s cost.

xii.

Other conditions

a)

Undertaking from the borrowers to exclusively deal with our bank to be obtained.

b)

Borrowers to route their entire receipts through their overdraft A/c. with the branch.

c)

Pre-sanction inspection of the unit to be carried out and report to be kept on record and thereafter to be carried out once in a year.

d)

The undertaking from the borrower declaring that he does not owe any overdue statutory dues like; Sales Tax, Income Tax, Corporation Tax, Professional Tax etc.

e)

Branch to endeavor to display bank’s name as financer from publicity angle.

f)

g)

Branch to obtain financial statements of the party duly audited every year / at the time of review of credit facility along with the copies of Income Tax Return etc.

On the recommendations of Chief Executive Officer, BOD may relax the margin on the merits of each case.