1.Eligibility All types of Traders including Retailers / Distributors / Commission Agents / Arthiyas/Dealers of major companies etc.
2.Quantum of Finance Maximum Rs.500.00 lakhs per borrower
3.Mode of Assessment Limit to be assessed as per Turnover Method, i.e. 20% of projected annual sales. The overdraft limit shall be for a period of 12 months and renewed / reviewed annually.
4.Nature of Finance Normally Overdraft. However, on request of the borrower, Term Loan can be considered depending upon repaying capacity and cash flow of the borrower.
5.Security Equitable Mortgage (under sole charge to the Bank) of residential house / flat, commercial or industrial property, non-agricultural boundarised & well demarcated plot in the name and possession of the borrower.
For loan up to Rs.20.00 lakh the market value of the property should be at least 150 % of loan amount and Realisable Value should be minimum 120% of the loan amount.
For loan above Rs.20.00 lakh, the market value of the property should be at least 200% of the limit and Realisable Value should be minimum 150%.
The property in the name of spouse / blood relative can be taken as security subject to their joining as co-borrower or guarantor, for financing to individuals, proprietorship and partnership firms. Property in the name of the Company or its Director/s can be accepted as security for financing to Company with personal guarantee of the owner Director of the property.
Liquid security in lieu of property, irrespective of loan amount, may be obtained in the form of
i NSC with accrued value (inclusive of interest) to the extent of 125 % of loan amount (i.e. margin 20%)
ii Time Deposit of Bank including accrued interest / Surrender Value of LIP-to the extent of 112% of loan amount.(margin 10%)
iii Securities viz. Bonds issued by Govt./Banks with to the extent of minimum 133% of loan amount (margin of 25%) can be accepted as per Bank's Loan Policy.
Liquid Security as above can be in the names as applicable for immovable property as mentioned above. The security offered can also be a combination of immovable property and/or any/more of the liquid security with margin as mentioned above.
6.Insurance The property will be insured against fire, riots wherever required and also against other appropriate hazards, such as earthquake, flood, lightning etc with bank's clause for full value of the property
Insurance of Stock /Stock in Trade is optional.
7.Rate of Interest MCLR + 3.00% (10.25+3.00=13.25%)
8.Processing Charge .Up to Rs.25,000/- : Rs.100 per proposal .> Rs.25,000/- up to Rs.2 lakh: Rs300/- per proposal. .> Rs.2 lakh : 0.5 % of the limit (maximum Rs.50,000/-for TL & Rs.20,000/- for OD at the time of sanction. Renewal charges @0.10 % of limit, max.Rs.5000/-
9.Details of Forms /Documents required i) Application form
ii) Financial Statements in case of limit of Rs.10.00 lakhs and above should be submitted.
iii) Copy of Sales tax / VAT /any other Tax Registration
iv) Copies of Sales tax / VAT Returns (Assessment Orders for last four quarters)
v) Details of property offered as security with its present valuation;
vi) Income tax Returns for the last 3 years.
vii) Details of property and other securities.