Small Business / Credit facility upto Rs. 25.00 Lacs

i.

Eligibility

–

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

ii.

Limit

–

(i) 40 % of sale as per last audited /Actual financials OR Current GST returns.

OR

(ii) 40 % of the value of security.

whichever is less of (i)  &(ii) above.

Maximum upto Rs. 25.00 Lacs

iii.

Purpose

–

Any legitimate requirement of Working capital finance, except for speculative purposes.

iv.

Nature of facility

–

Overdraft & Term Loan

v.

Primary Securities

–

Mortgage of freehold  immovable properties,  respective property for charging the same in bank’s favour.

vi.

Sureties

–

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

vii.

Period

–

12 months, subject to review thereafter for Overdraft & 84 months in case of Term Loan

viii.

Rate of Interest

–

10.50 %  p.a. on CC/OD 

10.00 % p.a. on Term Loan 

subject to change from time to time

(In case of Non priority, rate of interest will be added by 0.5 % p.a.)

ix.

Insurance

–

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

x.

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 she/he does not owe any overdue statutory dues like; GST, Income Tax, Corporation Tax, Professional Tax etc.

e)

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

f)

Branch to obtain financial statements of the party  every year / at the time of review of credit facility along with the copies of Income Tax Return etc. Further , financial statements for the immediate   previous financial year must be obtained.

g)

GST return on regular basis must  be obtained, if applicable.

h)

No relaxation in respect of margin & rate of interest will be allowed

i)

Total facility including overdraft + TOD + adhoc limit will not be allowed over the limit of Rs. 25.00 Lacs