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

Sr. No.	Particulars	Details
i	Eligibility	Any individual, group of individuals, Proprietorship, Partnership firm, or company who is a bonafide member of the bank, undertaking small construction work on their own without advance payment, and whose annual turnover does not exceed ₹200.00 Lacs.
ii	Purpose	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 the bank.
vii	Margin	Minimum of 40%, depending on merit of each case.
viii	Limit	Up to a maximum of ₹25.00 Lacs, subject to project viability and borrower’s repaying capacity.
ix	Period	Repayable within a maximum period of 60 months or completion of the project term. CEO may relax the repayment period based on case merit.
x	Rate of Interest	As per bank’s guidelines. Penal charges may apply for non-compliance with sanction terms.
xi	Insurance	All primary and collateral securities must be adequately and comprehensively insured with Bank’s clause at party’s cost.
xii	Other Conditions	If land is accepted as collateral, it should be valued at current market price only.