- To meet the financial requirements of rice mills.
- To set-up new rice mills and to acquire existing rice mills.
- Take over of rice mills advances as per our policy.
Working Capital / Seasonal Limit / Term Loan
- WC - 20% of projected sales
- Seasonal Limit – 15% of projected sales
- All types of fund and non-fund based limits can be sanctioned upto a maximum of Rs.500.00 lacs.
Margin
- Stock- 20%
- Bookdebt-25% (Cover period 60 days)
- KL/WHR – 25%
- FLC-25%
- BG-10%
- Cheque/DD Purchase – Nil
Term Loan
- For construction -25%
- For purchase of new (indigenous / imported) machinery - 25%
- For purchase of second hand indigenous machinery – 50% (Subject to submission of chartered Engineer’s valuation certificate confirming the residual life of the machinery covering the project period).
Repayment
- Working Capital – One Year
- TL – Maximum of 84 months excluding maximum holiday period of 12 months.
Security
- Primary :
- Working Capital-On hypothecation over stock, bookdebts and receivables.
- Term Loan :
- On Equitable Mortgage over land & building, if loan is sanctioned for construction.
- On hypothecation over the assets created out of our bank finance.
Collateral
- Must be covered by tangible and marketable collateral security to cover atleast 50% of the total limit sanctioned.
- No collateral is necessary for KL/WHR loan.
Interest
Fees & Charges
- WC - 0.50% of the Limit sanctioned + taxes applicable
- TL – 1.00% of the limit sanctioned + taxes applicable