Target Group
Traders with minimum one year experience with good standing in the market.
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 equipment etc.
Loan Amount
- 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)
Working Capital:
Stock and Book Debts : 15%
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%
Security
PRIMARY 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.
Repayment
Term Loan : Maximum 84 months (excluding holiday period of 6 months)
Credits – Indian Bank