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Eligibility and Terms

Individual / Joint / HUF / Proprietary Concern / Partnership Firms / Limited Liability Partnership Firms / Private Ltd Company engaged in Retails and Wholesale Trade.

Margin :

• Working Capital – Stock 25%, Book debts 30%.
• Term Loan –
  • For the purchase of new / second hand imported reconditioned equipment, racks etc – 25%.
  • For the purchase of indigenous second hand equipment – 50%. For building construction and other interior works – 40%
  • For purchase of old building – 50%.

Repayment:

• Cash Credit / Overdraft – One year, subject to renewal every year well before the due date.
• Overdraft (Reducing balance method) – 84 months.
• Demand / Term Loan (Business / WC purpose) – subject to review every year.
• Demand Loan – upto 35 EMI / MI
• Term Loan - 84 EMI / MI (excluding holiday)

Security:

Primary Security:

• Working Capital: Stocks and receivables
• Term Loan / Demand Loan – Assets acquired & created out of the loan.

Collateral:

• Non agriculture Self-owned (including properties in the name of family members) Land/ House Plot / Building properties valued not lesser than 150% of the limit sanctioned.
• In case of TL sanctioned for construction purpose the total value of primary security after construction should not be lesser than 150% of the loan amount.

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Interest and Fees

Click here to know the Rates of Interest for loans

Fees & Charges :-

• Term Loans / WCDL / WCTL / OD Reducing balance: 1.00% of the loan amount + GST.
• Cash credit / Overdraft (running account): 0.50% of the OD Limit + GST
• For renewals: 0.25% of the Limit + GST