| Purpose |
To meet the financing needs
of all lawful trading activity in goods and services |
| Eligibility |
a) You are an individual, sole proprietorship
unit, partnership firm, HUF, or Limited Company.
b) You should be a local resident
c) You must have either sales tax registration or trade/business
license/permit issued by a statutory authority/ recognized
body |
| Margin |
Working capital @ 20% for loans of less
than Rs.100 lakhs
@ 25% (min) for loans of Rs.100 lakhs and above
Term loan @ 25% for loans up to Rs.10 lakhs
@ 33 1/3% for loans above Rs.10 lakhs (Debt equity ratio
of 2:1 is to be maintained) |
| Repayment |
Working capital facility to be renewed
every 12 months from the date of sanction.
Term loan should be repaid within a period not exceeding
5 years. |
| Amount of finance |
Need-based bank finance will be extended.
In the case of commission agents, the borrowing limit not
to exceed Rs.25 lakhs |
| Security |
Primary: Hypothecation of stock in trade
and receivables
Collateral: Minimum collateral by way of equitable mortgage
of immovable property valued at 75% of the total exposure
For commission agents collaterals should be 150% of the
loan amount
Guarantee: Third party guarantee |
| Insurance |
The stocks should be insured for full
value against fire and other risks |
Methods of
Assessment
|
Projected turn over method for loans
of less than Rs.100 lakhs and projected balance sheet method
for loans above Rs.100 lakhs |
| Processing charges |
Rs.250/- for loans up to Rs.2.00 lakhs
Rs.250/- per lakh subject to a maximum of Rs.10.00 lakhs
for loans over Rs.2.00 lakhs |
| Term Loans |
Upfront fee @ 10% of the limit |
