Purpose – To finance working capital & term loan need to Retails & wholesale trading activities
Eligibility – Existing enterprises engaged in business for at least 2 years & earning profit during last 2 years.
Quantum of Loan – Minimum Rs. 50,000- Maximum Rs. 50 lakhs
Constitution – Individual Proprietorship Partnership Limited Company (Private Public) HUF
Banking Arrangement– Should deal with our bank exclusively.
Financial Statement – Not insisted upon
Security – Primary Security Hypothecation of stock adequately insured against comprehensive Risk.
Collateral Security: Equitable Mortgage of residential land & building having clear Marketing titles; Assignment of LIC policy lien pledge assignment on of KVP, IVP, NSC, Bank own fixed deposit, Govt. Bonds, RBI Bonds.
Personal Guarantee: All Director of Company; All partner of firm; Owners of immovable properties offered as security & one guarantee from Person of repute
Value – Equivalent to at least 100% of the total fund based WC limit & TL sanctioned.
Margin – Nil
Rate of Interest – 12.00 %
Processing Charge – 1.1235 % of Limit sanctioned
Incentives – 0.50% for satisfactory conduct of the AC in 2nd year
Credit Rating Analysis– Not Required