Tuesday, July 23, 2019
Finance

Oriental Bank of Commerce- Clean Loan to Traders

Purpose of Loan:

For meeting Working capital and acquiring assets for business needs.

Eligibility:

  • Traders who are individuals, firms, companies, co-operative societies, dealing in those goods, which are not prohibited by RBI/Govt.
  • Small business concerns/agencies providing services such as Xeroxing, dry cleaning, license to deal in petroleum products/LPG, drug license for the applicable business, petrol pump dealers, auto services centers, ISD/STD/PCO booths and others.

Quantum of Loan:

Maximum composite loan of Rs.25.00 lacs.

Rate of Interest:

Upto Rs.50,000/- at PLR - 2.0 % ie; 10 %
Above Rs.50,000/- and upto Rs.2 Lakhs at PLR - 1.50 % ie; 10.50 %
Above Rs.2 Lakhs and upto Rs.20 Lakhs at PLR - 1.00 % ie; 11 %
Above Rs.20 Lakhs to Rs.25 Lakhs at PLR ie; 12 %

Margin of Loan:

Margin of Oriental Bank of Commerce Trade Loan is 20 %.

Security:

Cash Credit/ Term Loan upto Rs.2.00 lakhs
  • In case of Cash Credit Limit Hypothecation of stocks (Stock Statement to be obtained on yearly basis & insurance to be done invariably).
  • Hypothecation of assets purchased out of loan amount.
  • Personal guarantee of adequate net worth acceptable to the Bank
  • NIL Collateral.
  • No Financial statements are required except statements of sales, purchases, gross profits, overheads and net profit.
Loan/Limit above Rs.2.00 lakhs and upto Rs.5.00 lakhs
  • In case of Cash Credit Limit Hypothecation of stocks (Stock Statement to be obtained on yearly basis & insurance to be done invariably).
  • Hypothecation of assets purchased out of loan amount.
  • Collateral security in the shape of NSCs, LIC policy (surrender value) etc. with realisable value of atleast 25% alongwith one third party guarantee of adequate net worth. OR mortgage of immovable property having realisable value equivalent to 75% of the loan amount sanctioned.
Loan/Limit above Rs.5.00 lakhs
Collateral security in the shape of NSCs, LIC policy (surrender value) etc. with realisable value of atleast 50% alongwith one third party guarantee of adequate net worth. OR mortgage of immovable property having realisable value equivalent to 100% of the loan amount sanctioned.

Repayment:

Working capital limit to be reviewed every year. However, limit upto Rs.2.00 lakhs shall be renewed every three years. Term loan 3 to 7 years.

Processing Fee:

0.50% of loan amount with minimum of Rs.500/-.

For more information: Website