Cash Credit Loans

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Cash Credit Loans :

  1. Purpose of the Loan : For any kind of Retail/ Wholesale Trade /Small business.
  2. Target Groups : Any individuals/ Partners/ Company under priority sectors.
  3. Age of Borrower : 18 to 60 Years
  4. Type of Advance : Working Capital.
  5. Quantum of Advance: Minimum 1/3 RD times of the turnover of the account of the party of last 6 months / 1 year. The limit also considered on the submission of stock statement that is 60% of the stock.
  6. Margin of the Loan: Minimum 40% of the Hypothecation of Stock.
  7. Rate of Interest : @11.50% P.A.
  8. Repayment: On Demand . Daily sale proceeds / income will be deposited. No maintenance of current account in other banks or in the same Bank after availment of the Cash Credit Loan.
  9. Review : Yearly Review is required to be made . Review will not be considered if turnover of 3 to 5 times not made in the account. On such case entire amount will be call backed giving maximum times of 6 months.
  10. Primary: Hypothecation of Stock and Goods with insurance @1.67 times value of the stock/ Limit whichever is higher , with approve insurance company of the Bank.
  11. Additional: @5% of liquid security in the name of applicant or Guarantors.
  12. Two personal Guarantee having sufficient net worth.
  13. Equitable mortgage of Landed property valued @125% of the loan amount for loan above ₹10.00 Lakhs. However loan upto ₹25.00 Lakhs mortgage can be waived if liquid security offered @40% of the loan amount.
  14. Linking Share : @2.50% of the loan amount.
  15. Process Fees : @ 1% of the loan amount.
  16. Disbursement: Disbursement should be made on the demand of the borrower within the permissible limit preferably through transfer. Cash withdrawal will not be allowed.

Cash Credit Loans (PSEP) to Contractors :

  1. Purpose of the Loan : To avail Loans for completion of Govt, Semi Govt. Work / Supply Orders.
  2. Target Groups : Any individuals/ Proprietor / Partnership Farm. Contractors/ Farm must be registered as class I /II contractors in any Govt. / Semi Govt. Department.
  3. Age of Borrower : 18 to 60 Years.
  4. Type of Advance : Cash Credit for 1 Year. Yearly Review to be made.
  5. Quantum of Advance: As per approved individual/ Group exposure norms of the Bank.
  6. Margin of the Loan : Minimum 40% of the Work Order Value.
  7. Rate of Interest : @11.50% P.A.
  8. Repayment : Bill/ Payment to be credited from the Department directly or direct payment make by the Contractors.
  9. Primary : Registered Power of Attorney Against Value of the Work order duly accepted by the Govt./ Semi Govt. issuing authority regarding payment routed through Bank loan accounts.
  10. Additional : @15% of liquid security in the name of applicant or Guarantors. 5% liquid security if it is backed by mortgage of land and building.
  11. One/Two personal Guarantee having sufficient net worth.
  12. Equitable mortgage of Landed property valued @125% of the loan amount for loan above ₹10.00 Lakhs. However loan upto ₹25.00 Lakhs mortgage can be waived if liquid security offered @40% of the loan amount.
  13. Linking Share : @2.50% of the loan amount.
  14. Process Fees : @ 1% of the loan amount.
  15. Disbursement : Disbarment should be made through account of the borrower depending on verification of Progress of Works.

Document to be Need :

  • Application in prescribed format
  • Photo - 2 copies
  • Address proof
  • Identity proof
  • Stock Statement
  • Last 2 to 3 years IT Return
  • Estimated and Projected Balance Sheet
View Rate of Interest
  • Notification