Purpose – For any legitimate requirement of Funds
Eligibility – Any Individual, Group of Individuals, Proprietorship or Partnership Firms, Companies etc
Type of Facility – Loan and/or Overdraft limit.
Margin – 15% of the Present value of Deposit for General Public and 5% in case of members of staff of Bank.
Rate of Interest – 2% and 1% above the applicable rate of interest on respective Deposit A/C for General public and members of staff respectively; Board of Directors may consider lower rate of interest to the general public, which shall not be less than 1 % over the applicable rate of interest on respective deposit.
Repayment – As required by the borrower, but not later than the date of maturity of Deposit A/c.
Security – Pledge of Bank’s own Time Deposit Receipt or Recurring Deposit A/C in the name of borrower or any third party.
Other Conditions – No credit facility to be allowed against the deposits of other Banks;
Weighted average rate of interest to be charged in case of Deposits of different rate of interest pledged with Bank as security.
CEO shall have the discretion to relax the condition of margin up to the maximum of 5% in deserving cases on merit of each case. Board can further relax the condition of margin to the maximum of 5 % i.e. Bank can grant loan maximum up to 95 % of Bank’s own deposit.
The bank also offers home loan, personal loan, vehicle loan etc