Purpose – For the purpose of Business
Eligibility – Any salaried persons or Professionals – Self Employed or Businessman are eligible for the loan
Quantum of Loan – Maximum credit facility @ 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 – of 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 lakhs
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.