Allahabad Bank- Trade Scheme
Purpose of Loan:
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Financing of Stock & other assets including book debts
to be used in trade.
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Development of shop /showroom / Acquiring block / fixed
assets like air conditioners, delivery vans etc.
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Purchase of shop/showroom upto 50% of the
value of the shop as per Registered sale deed or market value as assessed by
Bank & valuer whichever is less ( to be secured by mortgage of
registered sale deed).
Eligibility:
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Traders both wholesalers & Retailers of goods and
Commodities which are not prohibited by Govt/RBI. Borrowers may be
individual/ sole proprietorship/ Partnership firms/ HUF/ Joint stock
companies/ co-operative societies.
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Traders having Registration/ License as applicable under
local laws (i.e. Shops & Establishments Act). The registration/ license
may be as under: Sales Tax Registration
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Drug License for Retail Trade of Drugs/ Medicines (where
ever applicable) Trade license Ration & Civil supplies etc.
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The proponent should preferably be engaged in the line of
business for at least 1(one) year. New units can also be considered in
deserving cases. In such cases, reasonable projected sales should be
estimated depending on the merchandise area, market potential, capacity of
the borrower etc.
Quantum of Loan:
Overall Ceiling (Working Capital and/or Term Loan) will be
Rs.200.00 lakhs. Out of which Term Loan component should not exceed 25% of the
overall limit or Rs.25.00 lakhs which ever is lower.
Types of Facility:
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Overdraft facility for working capital.
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Term Loan for purchase/ development of shop/showroom.
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Letter of Credit may be sanctioned keeping in view, the
genuine requirement of the borrower, only in favour of reputed suppliers
within the overall ceiling.
Security:
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In addition to the Hypothecation of Stocks and other assets
created out of the Bank Loan, the loan will also be secured by mortgage of
immovable property - Value of Mortgaged property as
assessed by Valuer & Bank Officials (as per instruction Circular) should
not be less than 100% of the loan.
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In cases where it is observed during the visit for stock
verification that the normal margin requirement of 25% of the Stocks for WC
limit is not being regularly maintained, the borrower will provide
additional liquid security in the shape of our FDR/ DDP etc. to the extent
of 25% of the limit.
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3rd party property / FDR/DDP may be accepted which will be
backed by Personal Guarantee.
Rate of Interest:
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Risk rating |
Interest rate w.m.r |
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- AB-1 & AB-2
- AB - 3
- AB – 4
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Processing Fee:
Rs.200/- per lakhs, Minimum Rs.1000/- & maximum Rs.20000/-
Period:
- Working Capital : One Year
- Term Loan: Five Years excluding gestation period of maximum 3 months.
Repayment of Loan:
- Working Capital: On Demand
- Term Loan: Equated Monthly/ quarterly Installments. At the time of
disbursal 24 PDCs for the EMI are to be obtained and fresh set of PDCs
should be obtained 3 months before expiry of the stock of PDCs.
For more information: Website
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