Thursday, August 22, 2019
Finance

UCO Bank- UCO Trader

Purpose of Loan:

It is a loan for financing working capital and Term Loan needs of Retail and Wholesale trading activities other than Export. Retail and Wholesale trade in various types of commodities (not services) excluding those items which are specifically prohibited/restricted by the Bank, are financed through this scheme. Fund based Advance is granted by way of Cash Credit against stock as well as Book debt and Term Loan for acquisition of fixed assets to run the trade and business.

Eligibility:

  • Existing enterprises engaged in business for at least 2 years and earning profit during the last 2 years.
  • New trading unit started by existing UCO Trader borrowers or their close relatives/ allied/associate/connected concern under certain terms.
  • New trading units as well as units which have not completed two years can be financed maximum upto Rs.10 lac under certain terms.

Quantum of Loan:

Minimum Rs. 1 Lakhs and Maximum Rs 200 Lakhs. Within fund based limit of Rs. 200 lakhs, term loan up to Rs. 25 lakhs can also be sanctioned for acquisition of fixed assets. Repayment period of Term Loan not to exceed 60 months. Besides the above quantum of fund based limit, NFB limit by way of Inland LC/Bank Guarantee if needed, may be issued maximum up to 50% of FB working capital limit.

Rate of Interest:

Interest rate for UCO Trader is BPLR-0.50% ie; 11.75% p.a.

Margin:

  • No margin is required for Cash Credit in case of existing units & 20/25% for new units while computing drawing power.
  • Margin for Term Loan, LC & BG is 25%.
  • Application is simple; Balance Sheet is not required for limit up to Rs 10 lac and not compulsory for limit below Rs 50 lac subject to certain conditions.

Security:

  • Primary Security:  Hypothecation of stocks and book debt.
  • Collateral Security: 100% for Cash Credit (against stocks only ) and Term Loan.
  • 125% for Cash Credit (against stocks and debtors).

Processing Charges:

  • 0.50% of fund based limit.
  • 0.25% of Non-Fund based limit.

For more information: Website