Overdraft (Mortgage)

Overdraft Facility for Service Providers & Professionals

Pre-sale working capital facility for business and professional entities who do not have significant tangible current assets to offer as primary security.

Eligibility

Any bona fide individual / firm member engaged in any business, profession, or service of any type.

Limit

Need-based credit requirements to be assessed as per Bank’s Working Capital rules, subject to Bank’s exposure norms.

Purpose

Pre-sale working capital requirements of service providers, contractors, professionals like Chartered Accountants, Advocates, Doctors, etc., who do not have tangible current assets as primary security.

Nature of Facility

Overdraft

Primary Securities

Not Applicable (NA)

Collateral Securities

Mortgage of freehold property/ies or pledge of any other tangible security acceptable to the Bank, owned by the borrower or sureties.

Sureties

At least two sureties of good means and reputation, subject to Bank’s satisfaction.

Margin

35% of the value of security.

Period

12 months, subject to review thereafter.

Rate of Interest

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

Insurance

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

Other Conditions

  • Borrower must give undertaking to deal exclusively with the Bank.
  • All receipts to be routed through the overdraft account with the branch.
  • Pre-sanction inspection to be carried out and recorded; thereafter annually.
  • Undertaking that no statutory dues (Sales Tax, Income Tax, Professional Tax, etc.) are overdue.
  • Branch to endeavor to display Bank’s name as financer for publicity.
  • Financial statements duly audited and ITR copies to be submitted every year / at review.
  • On recommendation of CEO, Board of Directors may relax margin on merits of each case.