Shriram Urban Co-operative Bank Limited – Cash Credit

By | June 15, 2011

Shriram Urban Co-operative Bank limited is in profit since inception and has been consistently receiving “A” classification in the statutory audit for all these years. Bank has complied all the norms of R.B.I. and it has been categorized as Grade 1 Bank as per R.B.I. yardsticks. The bank offers home loan, personal loan, educational loans, mortgage loan etc.

Purpose                      – Any purpose

Quantum of Loan Cash Credit – Clean Limit up to Rs.1, 00,000; to the extent of 60% of own capital + funds from friends and relatives, to be related with debt equity ratio and current ratio.

Margin (Addition)        –           In case of Stock 40%; In the case of book debts 50%

Guarantors’                – Only two guarantors

Collateral security –           in the form of F.D.R., L.I.C. policy, N.S.C., etc., and monthly Recurring Deposit;

If the turnover is more then 8 times of the sanction then reduction in margin can be considered depending on other parameter.

Others

  • Review/renewal every year. First sanction above 50,000/- will be at Head Office.
  • Stock to be insured for full value with Bank clause.
  • Stock statement to be submitted half yearly in June and December
  • Drawl to be allowed to the extent of drawing power or sanctioned limit whichever is less.
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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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