IPSB VYAPAR SCHEME
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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