It is a loan for financing working capital and Term Loan needs of Retail and Wholesale traders.
Existing enterprises engaged in business for at least 2 years and earning profit during the last 2 years.
New trading units as well as units which have not completed two years can be financed maximum upto Rs.10 lacs.
Individual, Proprietorship, Limited Company (public/private), HUF, Borrowing concern should deal exclusively with our Bank only.
Quantum of loan
Any Amount from Rs. 1 Lac to Maximum Rs 200 Lacs.
Fund Based:-Term loan upto Rs. 25 lacs for acquisition of Fixed Assets.
Non-Fund Based:-inland L/C-DP or DA with usance period not exceeding 90 days.
INLAND BG:-validity period upto 1 yr. including claim.
Limits (Least of the followings)
- No margin is required for Cash Credit in case of existing units & 20/25% for new units while computing drawing power
- Margin for Term Loan, LC & BG is 25%
- Application is simple; Balance Sheet is not required for limit up to Rs 10 lac and not compulsory for limit below Rs 50 lac subject to certain conditions.
- 60% on realizable market value of immovable property, and/or
- 90% on FDR (if limit is sought above 60% of project value,
- 85% on surrender value of LIC Policies, NSCs & Govt. Bonds(if it is sought as additional limit),
20% of gross Annual sales(existing units) as reflected in last Sales Tax Assessment order/Sales Tax return/VAT Assessment Order or Return/Service Tax Assessment Order or Return/Declaration given by borrower, whichever is less.
- Primary-Hypothecation of stocks, book debts & Fixed Assets for existing units making profit at least for last two years.
- Collateral Equitable Mortgage of Land & Building, Assignment of LIC policy, Lien, Pledge/Assignment of KVP, NSC, Bank's own FDR, Govt./RBI Bonds.
Click here for rate of Interest :
- By owners of immovable properties offered as collateral security,
- By Karta & all major coparceners of HUF,
- By all partners of the firm(in case of partnership firm),
- By all Directors of the company (in case of Limited company)
Processing Charges- 0.50% of the fund based limit + 0.25% of Non-Fund Based Limit (one time) .