|Limit per Borrower :
||As per RBI Guide line Expouser limit for single borrower & group borrower.
|Margin Money :
||30% of Valuation of Stock.40% of Book Debts (Max 90 days old) Margin can be adjusted if 100% collateral Security is offered.
|Rate of Interest :
|Click Here For Interest Rates
||One guaranters (who holds property)
|Collateral Security :
||Immovable Property 110% of Loan Amount.
|( FD / NSC / KVP / LIC Policy etc.)
||90% of Loan Amount
|Eligibility of borrower :
- Having operative current account holder of the Bank for more than six months.
- Borrower/ Partners/ Directors/ Guarantors must be a member of the Bank.
|Purpose of Loan :
||To meet Working capital Requirement
|Quantum of finance :
- 20% of annual turnover/ sales of the firm.
- Up to 70% of the value of the stock plus 40% of book debts.
- Current Ratio & Debt Equity Ratio should be at satisfactory level
|Share Linkage :
||Borrower must have Bank 1 share 5% Bank FD of the loan sanction amount.
|Repayment period :
||Review once in 6 Months and renewal in 12 Months.
|Rate of Interest :
- Stock and book debts should be hypothecated to the Bank.
- Stock should be stored in R.C.C. built godown own/ rented by the borrower.
- Letter of access will have to be got duly signed by the owner.
- Bank's name plate indicating stocks hypothecated to the Bank will have to be displayed on godown where the stocks stored.
- Godown premises and Stock hypothecated to the Bank should be fully insured against the risk of fire, theft, burglary, flood, riots etc by the borrower at his.
- Own cost and the policy has to be with Bank clause.
- Borrower has to submit stock statement monthly or as instructed by the Bank within 7 days of the succeeding month otherwise penalty will be levied for delayed submission.
- Third party guarantee of one personal guarantors having Own Property & having good worthiness and financially sound and member of the Bank.
- Registered mortgage of title cleared property of the borrower/ guarantors.