Eligibility Wholesale Home appliances dealers of repute, both existing as well as new units.  The existing/new unit should be profit making/projected to make profits.  The applicant should be a member of recognized “Dealers Association of TV and appliances. Purpose To provide working capital finance to wholesale dealers in home appliances against hypothecation of stock/receivables

Facility

Fund based:

Cash Credit / Bills Purchase

(With interchangeability as per bank’s norms- However, the BP portion should not exceed 30% of the total fund based limit).

Non-fund based:

Bank guarantee/Letter of Credit.

Quantum of loan

Minimum Rs.2 lacs

Maximum Rs.500 lacs

(Fund based + Non-Fund based)

Security

Primary:

Hypothecation of paid stocks/receivables

Collateral:

Security with value at least 100% of the limit, of which tangible security should not be less than 50%.

Margin

Stocks:  25%

Receivables: 50%

Bank guarantee:  25%

Rate of Interest

Competitive rates based on credit rating of proposal

Processing charges

   As applicable to working capital limits