Purpose: This loan provides hassle free finance to borrowers in SSI, Trade and Service sector by means of mortgage of property with adequate value.
Eligibility: Existing customers of the bank with a satisfactory track record of at least three years are eligible for the loan. New borrowers including take-over with minimum existence of three years will also be considered for this personal loan. Retail traders/Whole sale traders, Professional and self-employed, small business enterprises Small scale industries can avail this loan.
Quantum of Loan: The minimum amount that can be granted as loan is Rs.0.50 lakhs. The maximum amount that can be granted as loan is Rs.25 lakhs.
Margin: The margin is 25% for cash credit and term loan.
Security: Hypothecation of stocks and receivables forms the primary security for the loan. Collateral security of tangible urban property with a market value of minimum of 133% of loan by way of Equitable Mortgage is also needed. Securities like TDRs, NSCs, LIC policies, etc. for up to 90% of the value may be considered.
Repayment: For Working capital repayment has to be done on demand. For term loan repayment has to be done within 60 EMI.