Credit facility for Business

Working Capital / Term Loan for Trading & Industrial Units

Credit facilities for proprietorship firms, partnership firms and companies engaged in trade or industry for meeting pre-sale and post-sale working capital needs.

Eligibility

All proprietorship firms, registered partnership firms and companies engaged in trade or industry who are bona fide members of the Bank.

Purpose

Pre-sale and post-sale working capital requirements.

Nature of Facility

The credit facility may be sanctioned either as an Overdraft or a Term Loan.

Method of Assessment

50% of sales as per latest audited / actual / provisional / projected financials.

Securities

  • Mortgage of immovable property
  • Hypothecation or pledge of any other tangible security owned by borrower or surety(ies)
  • Sureties to stand as guarantors

Sureties

At least two satisfactory sureties of good means.

Margin

35% of marketable value of mortgaged property.

Limit

Minimum: ₹5.00 Lacs
Maximum: Subject to the Bank’s exposure limit

Note: DSCR should not be less than 1.50 in case of Term Loan.

Period

Overdraft: 12 months (subject to annual review)
Term Loan: Maximum 120 months (based on repayment capacity)

Rate of Interest

As per Bank’s guidelines from time to time, including penal charges for non-compliance with terms of sanction.

Insurance

All primary and collateral securities must be insured adequately and comprehensively with Bank’s clause at party’s cost.

Other Conditions

  • Borrowers must route sales and other transactions through their Overdraft A/c with the branch.
  • Branch must ensure end-use verification.
  • Pre-sanction inspection of business unit & property is mandatory.
  • Property inspection: once every year with report on record.
  • Business inspection: quarterly/half-yearly/yearly based on exposure.
  • Borrower must submit an undertaking declaring no overdue statutory dues (GST, Income Tax, etc.).
  • Submit financial statements, sales declarations with GST/IT Returns at annual review.
  • Rented property cases require a Registered Rent Agreement.
  • Borrower, mortgagor & guarantors must be Bank members before processing.
  • Other usual terms & conditions apply as per Bank’s rules.
  • CEO may recommend and BOD may relax margin on merits of each case.