Indian Bank- IB Tradewell

Purpose of Loan:

A Scheme for Wholesalers and Retailers to meet the following purposes: to meet the working capital needs of trading activities and to meet the term loan requirements for purchase / setting up infrastructure like hoarding, show cases, basic offices, amenities, purchase of delivery van etc.

Quantum of Loan:

Working Capital (FB & NFB): Rs.5 Crores. Term Loan (max): Rs.1 Crore. Sublimit upto to 25 % of working capital FB limit can be allowed as cheque BP.

Rate of Interest:

Amount	Micro Enterprises	Small Enterprises	Medium Enterprises
Limits upto Rs.2.00 lakhs	BPLR-1.25%	BPLR-0.75%	-
Above Rs.2.00 lakhs & upto Rs.25.00 lakhs	BPLR-0.25% to BPLR+1.75%	BPLR+0.25 to BPLR+2%	-
Above Rs.25.00 lakhs and up to Rs.10.00 crores	BPLR-0.25% to BPLR+1.75%	BPLR+0.25 to BPLR+2%	BPLR+0.25 to BPLR+4%
Above Rs.10.00 crores	BPLR+0.75% to BPLR+2%	BPLR+0.75% to BPLR+2%	-

Repayment of Loan:

Term Loan : Maximum 48 months (excluding holiday period of 2 months) with minimum Debt Service Coverage Ratio (DSCR) 1.50.

Margin of Loan:

Term Loan : Margin at 25 % on the equipments value.

Security:

Primary Security : Immovable property : 50 % on market value. Other tangible security (NSC, KVP, IVP, Surrender Value of LIC Policy, Bonds of All India Financial Institutions): as per existing Bank norms.
Collateral Security : Stocks and Book Debts NIL margin. For WC limit above Rs. 1 Crore (OCC). Primary : Stocks and Book Debts with 15 % margin. (Immovable property and / or other tangible security value should be minimum of 100 % of the limit sanctioned. Circle Heads may consider collateral upto 50 % of the sanctioned limit, on a selective basis on business consideration. Collateral of third party can also be accepted in which case offer to create mortgage over the property from the owner and his personal guarantee for the full advance to be taken. Deposit of Title Deed should be made by owner of the property himself and not through a Power of Attorney).

Processing Fee: