Purpose: This loan provides cash credit.
Eligibility: Businessmen, individuals doing business, contractorships with not less than 3 years experience, are eligible for this loan. The applicant should be an income tax assessee for at least the last 3 years.
Quantum of Loan: The quantum of the loan is decided based on the credibility of the applicant. Even large scale loans of up to Rs. 200 lakhs could be granted for the eligible applicants.
Margin: There is a margin of 25% for this loan.
Rate of Interest: In case of business, transport operators, industrial advances, swarojgar yojna credit card, trading, etc. the rate of interest is PLR + 2 % per annum. In case of small and medium enterprises the rate of interest is 0.75%, PLR-2% and PLR+2% for loans of up to Rs. 50,000/- , Rs. 50,000/- to Rs. 5 lakh and Rs. 5 lakh to Rs. 10 lakh categories respectively.
Repayment: The credit facility undergoes annual review.
Security: Hypothecation of assets is the primary security for the loan. Collateral security is decided based on the quantum of the loan as per the bank norms.
Other Features: There are processing charges for this kind of personal loan and the processing charge is decided based on the banks norms.