Punjab & Maharashtra Co-operative Bank Ltd. – Loan against Plant/ Machineries and/or Movables

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: This personal loan finances industrialists and small entrepreneurs who need finance for setting up plant & machineries, equipments, other movables such as furniture and fixtures, office equipments, etc.

Quantum of Loan: Loan amount covers the cost of the plant & machinery or movables as per invoice and agreement value or market value whichever is lower in case of second hand machineries.

Margin:

25 – 30%: In case of new machineries.

50%: In case of second hand.

Rate of Interest: 13.5% per annum

Repayment: Loan should be repaid by EMI within 60 months.

Security: Hypothecation of plant & machinery or movables purchased. Collateral Security can be insisted upon depending on size of Credit Facility, means of applicant, lending relationship with Bank & Credit Rating of the Borrower account.

Guarantee: Two solvent third parties.

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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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