- Working capital requirements
- Development of shop (e.g. purchase of equipment, P.C. , air conditioner, furniture etc…, not for purchase of shop ), for need based requirements subject to a maximum of 25% of the working capital limit sanctioned.
- Non fund based facilities (i.e. Bank Guarantee and Letter of Credit)
- Individuals, Proprietorship, Partnership concerns, Firms, Private Ltd. Cos. And Regd. Co-op. societies engaged in trade of any commodity / goods required by the community and trading in them is not prohibited by law or opposed to public interest.
- Dealers in Silver / Gold Jewellers against the jewellery, but not against bullion / raw gold. (Borrowers to comply with the Licensing requirement for the business)
- HUF & Public Ltd. Cos. are not eligible
- The business units should have been established in the line of business for a minimum period of 2 yrs.
- Trading units established by our existing customers with satisfactory dealings or their close relatives, even if these are established for less than 2 yrs.
- Trading units of non – customers having less than two years establishment; with the prior approval of Regional authority.
Type of Facility
- Overdraft / Term Loan
Limit
| If Property is situated in | Maximum Limit |
|---|---|
| Metro & Urban Area | Rs. 300.00 Lac |
| Semi - Urban Area | Rs. 300.00 Lac |
| Rural Area | Rs. 300.00 Lac |
| Rural Area | Rs. 100.00 Lac |
Method of Assessment of Working Capital Limit
- The credit limit is to be considered as under:
- 20% of the projected sales subject to verification of sales tax returns of previous years/quarters OR
- Advance value of collateral assets to be charged, whichever is lower.
Method of Assessment of Loan for Shop Development
Total deductions including EMI for proposed loan should not exceed as given below:
- Need based finance to be considered as per requirements subject to a maximum of 25 % of the working capital limit sanctioned.
- Working Capital advance & shop development loan together should not exceed Advance Value of collateral security OR maximum limit specified under the scheme i.e. Rs. 300/- lac, whichever is less.
Margin
- 40 % on market value of immovable property (as per recent valuation report) for properties purchased & sale deed registered before -3- years and more period. (applicablew.e.f. 02.03.2010).
- 40% on realizable value of immovable property (as per recent valuation report) for properties purchased & sale deed registered within -3- years period.
- 50% on approved shares/bonds.
- 10% on Bank's own FDRs.
- 15% on the surrender value of Life Insurance Policies, NSCs, Government Bonds etc.
Period
- 12 months subject to annual review.
Security
- Tangible collateral securities in the form of mortgage of land (not agriculture land) and building.
- Property to be mortgaged may be ONLY in the name of either Borrower, Proprietor, Partner, Director or their close relative (viz spouse, parent, brother sister, son, daughter) who should stand as guarantor.
Age of Property
- Age of property should not be more than 25 years old.
Repayment
- Maximum 60 EMI (depending on repayment capacity)
Insurance
- Insurance of the Property mortgaged (cost be borne by borrower) for full value excluding :
- Cost of Land in case of constructed property.
- The Plot of land.
- Obtaining insurance against the stocks cover may not be a condition for sanction of the facility. However bank may counsel their borrowers to have the stock insured in their own interest at their cost.
- Bank is authorized to make enquiries from any of the Credit Information Bureau and get the Credit Information Reports. Bank is also authorized to disclose from time to time any information relating to the loan to Credit Bureaus approved by Govt of India or Reserve Bank of India without any notice to the borrower.