Purpose – For working capital requirements only
Eligibility – All persons/proprietorship firms/Regd. Partnership firms/Companies engaged in trade or service of any commodity/goods and are in their line of business for at least 2 years, who are the bonafide members of the bank.
Nature of facility – The credit facility may be sanctioned either in the form of an overdraft or as a loan.
Method of Assessment of Working Capital: The credit limit is to be considered as under:-
Advance value (market value – margin) of the collateral assets to be charged
or 20% of the projected Sales subject to verification of VAT/Sales Tax Returns of previous years/quarters.
Limit – Minimum Rs. 5.00 Lakhs to Maximum Rs.125.00 lakhs
Margin – 40% on market value of immovable property in case of residential properties; 50% on market value of immovable property in case of commercial properties.
Rate of Interest – As per Bank’s Rules, subject to penal interest for non-compliance of terms of sanctions
Security – Primary: Hypothecation of stocks and Book Debts
Collateral : Tangible collateral securities in the form of mortgage of non-agricultural freehold land and buildings, National Savings Certificates, our Bank Term Deposits, Life Insurance Policies (Surrender Value) etc.
The bank also offers financial assistance to people in the form of loans such as home loan, personal loan, educational loan, car loan etc