Punjab & Maharashtra Co-operative Bank Ltd. – Cash Credit against Stocks and Book Debts

By | March 29, 2011

The Punjab & Maharashtra Co-operative Bank Ltd. (PMC bank) started its operations first time on 13th February, 1984. The bank was established with an aim to provide banking services that provides the customer utmost ease and convenience. Within a short span of just 16 years, it has achieved ‘scheduled’ status on 29/01/2000 and is the youngest co-operative bank to achieve the status.

Purpose: For financing the needs of working capital for business this loan can be availed.

Eligibility: Industrialists, small entrepreneurs, traders, professionals and self employed persons can avail this loan for fulfilling their working capital needs.

Quantum of Loan: The maximum amount of the loan depends on the business turnover and also per party limit fixed by the Bank from time to time.

Margin: There is a margin of 25% against stock and book debts.

Rate of Interest: The rate of interest is 13.50 % per annum.

Repayment: The loan is repayable on demand. The personal loan is subject to annual review.

Security: Hypothecation of stock and book debts is taken as security. Collateral securities of tangibles may be needed in some cases.

Guarantee: Two solvent third parties are required as guarantee.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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