Cash Credit Loan

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 : 12.00 %
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Guarantors : 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 : 12.00%  p.a.
Security :

Prime :

  • 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.

Collateral :

  • 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.