GST No.: 24AABAT4356N1Z6               

Cash Credit Loan

Eligibility of borrower  
  • Having operative current account  holder of the Bank  for more than six months 
  • Having good reputation, experience, credit worthiness and a profit making.
  • Borrower/ Partners/ Directors/ Guarantors must be a member of the Bank.
  • having sufficient score in CIC's reports.
Purpose of Loan 
  • To meet Working capital Requirement
Quantum of finance         
  • 20% of  annual turnover/ sales of the firm.
  • Up to 70% of the value of the paid stock plus 70% of book debts subject to DP against book debts should not exceed 6 times of DP against stock.
  • Current Ratio & Debt Equity Ratio should be at satisfactory level
Share Linkage
  • Borrower must have Bank share Linkage @ 1% of the loan sanction  amount.
Repayment period          
  • Review once in 6 Months and renewal in 12 Months.
Rate of Interest 10.25%  p.a.
Security Prime:
  • Stock and book debts should be hypothecated to the  Bank.
  • Stock should be stored in R.C.C. built godown own/ rented by   the borrower.
  • Letter of access will have to be got duly signed by the  owner.
  • Bank's name plate indicating stocks hypothecated to   the Bank  will  have to be displayed on godown where   the stocks stored.
  • Godown premises  and Stock hypothecated to the  Bank should be  fully insured against the risk of fire,  theft, burglary, flood, riots etc by the borrower at his
  • Own cost and the policy has to be with  Bank clause.
  • Borrower has to submit stock statement monthly or as   instructed by the Bank within 7 days of the succeeding  month   otherwise penalty will be levied for delayed   submission.

Collateral:
  • Up to 100% collateral security by way of equitable or simple mortgage of title cleared property of the borrower or guarantors.
  • Third party guarantee of two personal guarantors having good Credit worthiness and  financially sound  and member of the Bank.
  • Simple mortgage of title cleared property of the borrower/guarantors.
Other
  • Borrower has to submit stock statement monthly within 15 days of the succeeding month along with the list of sundry debtors, otherwise penalty @ Rs. 200 + GST will be levied for delayed submission.