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Purpose
To provide hassle free working capital finance to borrowers in trade & services sector and are willing to furnish mortgage of property of adequate value.
Nature of facility
Cash credit/Overdraft |
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Eligibility
- Existing customers with a satisfactory track record of three years (cash profits during last 3 years and net profit in the immediately preceding year)
- New customers including take-over with minimum existence of 3 years will also be considered. Performance and credentials to be excellent.
The following categories of borrowers will be covered:
- Retail traders/whole sale traders
- Professionals and self-employed
- Small business enterprises.
Quantum of loan
Minimum - Rs. 10 lacs
Maximum – Rs 100 lacs
Assessment of limits
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For trades and business enterprises. 75% of realizable value of property or 15% - 20% of projected annual turnover, whichever is lower. Realizable value of property will be decided on the basis of the valuation report of an approved valuer of the bank. Projected annual turnover will not exceed 125% of turnover achieved in immediately preceding year.
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Professionals and self employed. 75% of realizable value of property or 100% of gross annual income as per IT return, whichever is lower
A limit of up to 90% of present realizable/surrender value may be sanctioned against the security of liquid securities like TDRs, NSCs, LIC Policy etc. (Under both the categories).
Interest Rate
Competitive rates based on credit rating of proposal
Security
Primary:
Hypothecation of stocks and receivables.
Collateral:
Tangible collateral security of minimum of 133% of loan in the form of:
Equitable mortgage of land & building and/or Securities like TDR, .NSCs, LIC Policy etc.
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