Cash Credit / Overdraft Facility For Business
Who can apply? |
Business entities (Proprietorship / partnership / P.Ltd / Public Ltd companies ) |
What should be the purpose? |
Cash credit or overdraft facility for meeting working capital requirement. |
How much loan can be granted ? |
Depending upon the purpose & end-use, cash credit facility against hypothecation of fully paid stocks or overdraft facility against book-debt/deposit receipt/property/other tangible security |
What is rate of interest? |
(except Anna Saheb Patil & OBC Mahamandal )
First 3 years 10.25% and after 3 years rate of interest will be review as per bank policy. The borrower has to maintained following criteria.
- Turnover in account i.e 50% of his sales.
- Borrower to utilized the limit 50% and above of sanctioned limit.
(Note - No rebate is applicable to fresh proposals )
- For Existing borrower – Rate of 13% p.a. will be continue.
2% rebate on quarterly basis to those accounts
- Account should be standard account.
- Regular monthly interest servicing on time.
- Turnover in account i.e 50% of his sales.
- Borrower to utilized the limit 50% and above of sanctioned limit.
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What will be share linkage |
1% of loan sanctioned |
What will be margin? |
Prime: Hypothecation of stocks/book debts < 90days
Collateral : Mortgage of immoveable assets 100% of limit |
What will be the securities? |
Prime: Hypothecation of stocks/book debts Collateral : Mortgage of immoveable assets |
What about guarantors? |
Two guarantors acceptable to Bank |
How to apply? |
- Application in prescribed format
- Address proof : Passport / telephone / electricity bill, Ration card / Voter identity card etc
- Identity proof : Passport/voter identity card / PAN card telephone/electricity bill etc.
- Photographs of borrower & guarantors
- Audited Profit & Loss accounts & Balance sheet for last 3 years
- Income Tax Return/Assessment order for last 3 years
- Latest stock statement /book debt statement
- Valid Shop & Establishment Registration copy, Drug license, Tax registrations, rent paid receipts etc
- Regd Deed of partnership / Memorandum & Articles of Asscn ( Also copy of Form 32 if there is any change of Director)
- Copy of Board Resolution
- Copy of registered sale agreement of the property to be mortgaged,
- Search report/ valuation report
- NOC from builder/Society, NOC from CIDCO
- share certificate
- Consent letter & financial papers of guarantors
- Position of Statutory dues
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What about insurance? |
The assets financed shall be fully insured with Bank clause |
Concession Rate 0.25% p.a. of Interest to Women borrower for Housing Loan, Education Loan, Gold Loan, Business Loan.
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