Scheme for Working Capital Finance

i.

Eligibility

–

Any regular member of the Bank engaged in any trade or industry or services or profession.

ii.

Purpose

–

Pre-sale and Post-sale working capital requirements.

iii.

Nature of facility

i)

ii)

)

Cash Credit or overdraft and/or

WCTL, and/or

Bills purchased (BP) and/or Bills Discounted (BD)

iv.

Primary Securities

–

Hyp. Of stocks and/or Book Debts of the firm outstanding for not more than 90 days. Pledge of cheques/Bills/duly accepted Hundies in case of BP/BD facility

v.

Collateral Securities

–

As per merit of each case, by way of mortgage of immovable property and/or hypothecation/or pledge of any other tangible security acceptable to the Bank owned by the borrower or surety/ies, who shall have to stand as Guarantor/s.

vi.

Sureties

–

At least two sureties of good means and enjoying high reputation, subject to satisfaction of Bank.

vii.

Margin

–

As per merits of each case, nature of security etc.

viii.

Limit

–

Need based credit limits to be assessed as per Bank’s policy/Rules.

ix.

Period

–

12 months, subject to review thereafter. WCTL is however, repayable within a maximum period of 72-120 months in suitable instalments.

x.

Rate of Interest

–

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

xi.

Insurance

–

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