Purpose – For any legitimate requirement of funds except for speculative purposes and for purchase of various small saving instruments , like ; KVPs., NSCs etc.
Eligibility – Any Individual, Group of Individuals, Proprietorship or Partnership Firms, Companies etc. who is a bonafide Member of the Bank, including Nominal
member
Type of Facility – Loan and/or Overdraft limit.
Margin – 10% of Face value of the instrument if repayment of the same is due within two years from date of sanction and 15% of Face value in all other cases.
Rate of Interest – As per Bank’s rules
Other Charges – As per Bank’s rules
Repayment – As required by the borrower, but not later than the date of maturity of the instrument/s pledged with the Bank.
Security – Pledge of Govt. Security like; NSCs, KVPs, other Bonds/Debts Instruments issued by Central or any State Govt. PSU etc in the name of borrower or any third party, who shall require standing as surety for the facility.
Other conditions – Bank’s charge on the instrument to be registered with issuing authority of the respective instrument before disbursement of credit facility; No financial accommodation to be allowed for purchase of same instrument which is proposed to be pledge with the Bank etc unlike other personal loan