|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
- Borrower must have Bank share Linkage @ 1% of the loan sanction amount.
- Review once in 6 Months and renewal in 12 Months.
|Rate of Interest
- 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.
- 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.
- 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.