Purpose – For the purpose of Business
Eligibility – Maximum credit facility is 20 % of the Annual Sales Turnover (Own contribution @ 5 % of the C.C. Limit sanctioned is required).
Amount of Credit Facility will depend upon the nature of business of the applicant, offering of collateral security and the worth of the personal guarantees.
Personal Guarantee – At least two persons having income / asset expectable to the Bank
Primary Security – Hypothecation of Stock & Book debts (i.e. not more than 60 days)
Collateral Security – Not required for Limit below Rs. 2.00 lakh
Drawing Power – 65 % of the Paid stock Plus Book debts for not more than 60 days on submission of the stock – book debt statements every month (i.e. D.P. will not exceed the sanction limit)
Rate of Interest – 11.50 %
Processing Charges – At the prevailing rates of the Bank from time to time
Pre-Payment Charges – Nil
Share Money Contribution – 2.5 % of the Limit Sanctioned.
Renewal – Limit required to be renewed every year.
Tenure for Repayment – This limit will be reduced @ 20 % every year at the time of renewal and required to be satisfied in full on or before 5 years.
The loan portfolio of the bank consists of home loan, personal loan, education loan, vehicle loan, business loan etc.