Construction Working Capital / WCTL Scheme
Working capital finance for members undertaking small residential or commercial construction work on their own, without advance payment.
Eligibility
Any individual, group of individuals, Proprietorship, Partnership firm, or Company who is a bona fide member of the Bank, undertaking small construction work on their own without advance payment, and having annual turnover not exceeding ₹200.00 Lacs.
Purpose
Working capital requirement only for construction of residential or commercial buildings.
Nature of Facility
Term Loan (WCTL) and/or Cash Credit.
Primary Security
Hypothecation of construction materials.
Collateral Security
As per merit of each case, by way of mortgage of immovable property or any other security acceptable to the Bank.
Sureties
At least two sureties, subject to satisfaction of the Bank.
Margin
Minimum 40%, depending on merit of each case.
Limit
Up to a maximum of ₹25.00 Lacs, subject to project viability and borrower’s repaying capacity.
Period
Repayable within a maximum period of 60 months or up to completion of the project term. CEO may relax the repayment period based on the merits of each case.
Rate of Interest
As per Bank’s guidelines from time to time. Penal charges may apply for non-compliance of sanction terms.
Insurance
All primary and collateral securities must be insured adequately and comprehensively with Bank’s clause at party’s cost.
Other Conditions
- If land is accepted as collateral, it shall be valued at current market price only.