Purpose of Loan:
Financing of Stock & other assets including book debts to be used in trade.
Development of shop /showroom / Acquiring block / fixed assets like air conditioners, delivery vans etc.
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).
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.
Traders having Registration/ License as applicable under local laws (i.e. Shops & Establishments Act). The registration/ license may be as under: Sales Tax Registration
Drug License for Retail Trade of Drugs/ Medicines (where ever applicable) Trade license Ration & Civil supplies etc.
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:
Overdraft facility for working capital.
Term Loan for purchase/ development of shop/showroom.
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.
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.
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.
3rd party property / FDR/DDP may be accepted which will be backed by Personal Guarantee.
Rate of Interest:
Up to Rs.10.00 Lacs: PLR w.m.r.
Above Rs.10 Lacs as per Risk rating (on CRG -02/4).
Rs.200/- per lakhs, Minimum Rs.1000/- & maximum Rs.20000/-
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.
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