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.