Cash Credit

Eligibility of borrower   ·         Any trader, manufacturer, dealer, firm, factory, agency, whole seller, retailer etc. doing lawful business can apply for the facility to meet their working capital needs.·         Clubs, Associations, Minors, Insolvents, Lunatics, Drunkards, Insane, and Frauds are not considered for this facility.
Purpose of Loan  To meet Working capital Requirement of the units.
Quantum of finance          ·         Minimum 20% of projected annual turnover/ sales of the firm.·         Up to 75% of the value of the stock plus 60%   of book   debts.

·         Current Ratio & Debt Equity Ratio should be at satisfactory level
Share Linkage Purchase of Bank’s share is optional to the borrower.
Repayment  period   12 Months (subject to annual review)
Rate of Interest
S.S.I. Slab Parameter Non S.S.I
11.50% Up to Rs.10.00 Lacs 11.50%
11.50% Above Rs.10.00 Lacs To Rs. 25.00 Lacs 11.50%
11.70% Above Rs.25.00 Lacs To Rs. 50.00 Lacs 11.70%
11.80% Above Rs.50.00 Lacs 11.80%
Security Prime:·         Stock and book debts tobe hypothecated to the Bank.

·         Stock should be stored in R.C.C. built own/ rented godown by   the borrower.

·         Bank’s name plate indicating stocks hypothecated to   the Bank to be displayed on godown where   the stocks stored.

·         Godown premises and Stock hypothecated to the Bank should be fully insured against the risk of fire, theft, burglary, flood, riots etc. by the borrower at his own cost and the policy has to be with Bank clause.

·         Borrower has to submit stock statement monthly or as   instructed by the Bank within 10 days in the succeeding month otherwise penalty will be levied for delayed   submission.

Collateral:

·         Third party guarantee of two personal guarantors having good   Credit worthiness and financially sound andboth should be shareholder of the   Bank.

·         Equitable mortgage of title cleared property of the borrower/    guarantors having sufficient valuation to cover the limit.
Documents 1.        DP Note2.        Acceptance letter of Loan Amount

3.        Letter of Continuing security

4.        Letter of Guarantee

5.        Hypothecation of Stock

6.        Hypothecation of Stock and Book debt

 7.        Letter of Lien & Set off8.        Letter of consent

9.        Equitable Mortgage Letter

10.     Equitable Mortgage of immovable Property

11.     Proprietorship / Partnership Letter

12.     Letter of sanction duly acknowledged by the borrower and guarantors.