Target Group

Purpose

• To meet working capital requirements
• Term Loan for acquisition of fixed asset, modernization of business place/office.

Nature of Facility

Working Capital: Open Cash Credit, Secured Overdraft, Bank Guarantee, Letter of Credit, Bills Discounting etc.

Term Loan for purchase of equipments etc

Amount of Loan

• Minimum: Rs.0.10 Crores
• Maximum: Term Loan: Rs.5.00 Crores
•                   Working Capital: Secured Overdraft/ / OCC / PC: upto Rs.2.00 Crores
•                                               OCC / PC : Above Rs. 2.00 Crores

Margin (Promoter’s Contribution)

Stock and Book Debts : 25% and 30%

Term Loan:

25% on cost of equipments to be purchased.

Secured OD:

Upto Rs.0.50 Crores – 33% on Immovable property.

Our Bank Deposits / NSC – 10%

Above Rs.0.50 Crores & upto Rs.2.00 Crores –  40% on Immovable property

Our Bank Deposits / NSC – 25%

Government Securities – 20%

Repayment Period

Security

Secured OD : EM of properties

Other Tangible Security i.e. Our Bank Deposits / NSC etc.

OCC : Hypothecation of Stocks and Book Debts upto 90 days

TL – Machine / Bldg – Hypothecation / EM of assets created out of the term loan.

For NFB: Portion uncovered with cash margin shall be covered with realizable sale value of EM property / liquid securities.

Open Cash Credit:

• Stock and Book Debts

Term Loan:

• Hypothecation of equipments purchased out of loan

COLLATERAL  SECURITY:

Secured OD : Hypothecation of stocks & book debts equal to the limit sanctioned.

Others : Immovable property (Primary + Collateral) and / or liquid security value should be at least 50% of the limit sanctioned.

Service Charges

Processing charges: 50% concession.

Interest Rates