Purpose – To offer loan to Traders term Loan: Individual, Proprietorship Firm, Partnership Firm.
Eligibility – The Borrower should have any type of Traders/ Businessmen/ having license holder, residing in the area of operation of the Bank, the applicants and the guarantors should be permanent member of the Bank.
Basis for Deciding of Loan Limit
• 20% of Turnover
• Up to Maximum 60% of Main security i.e. Movable or Immovable or
• 50% of movable stock plus 60% of immovable property.
Period – Maximum 3 Years, After the expiry of the period of three years if there was a satisfactory turnover and the account remained in a standard category at due date, the account may be renewed for further period of 3 years.
Collateral Security – The acceptable collateral security is plot, building, and agriculture land. The mortgage property can be taken as security after verification and proper assessment of its value and marketability. The property owner must be a borrower or guarantors. The charge on security is to be created by way of registered mortgage.
Interest Rate – Interest will charge on monthly basis as per prevailing banking rates.
Fees and Charge – 2.5% linking shares, processing fees as per the Bank Rule
Stamp duty as per Bank Rule