Andhra Pradesh Grmeena Vikas Bank – Mortgage loans for Trade, Industry and Service Sector (SME)

By | June 24, 2011

Purpose                      – To provide hassle free finance to borrowers in SSI, Trade and Service sector by means of mortgage of property with adequate value.

Type of loan                – Cash credit/ Term loan

Eligibility                     – a) Existing customers with a satisfactory track record of three years.

b) Cash profit during last 3 years and net profit in the immediate preceding Year

c) New borrowers including take-over with minimum existence of three years will also be considered.

Category of borrowers

Retail traders/Whole sale traders, Professional and self-employed, small business enterprises Small scale industries.

Quantum of Loan       – Minimum of Rs.0.50 lakhs

Maximum of Rs.25.00 lakhs

Margins            25% for cash credit as well as for term loan

Rate of Interest         – 14.50%

Repayment                 – For Working capital on demand. For Term loan 60 EMI

Security                      – Primary: Hypothecation of stocks and receivables

Collateral: collateral security of tangible urban property with a market value of minimum of 133% of loan by way of Equitable Mortgage. Securities like TDRs, NSCs, LIC policies.etc.90% of the value may be considered.

Insurance                   – Comprehensive insurance coverage for full market value of primary and collateral securities with incorporation of bank clause.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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