Machinery Loan

Eligibility of borrower Audited / Unaudited balance sheet for the last 3 years or the latest balance sheet or ITR of Firm (In case of  New Business Project report prepared by Chartered Accountant
Purpose of Loan          Purchasing New Machineries for manufacturing purpose.
Quantum of finance      ·         Up to 75% of the cost of machinery.

·         However existing deduction plus EMI of proposed loan should not exceed 60% of annual income of the applicant.
Share Linkage           Borrowermust purchase Bank share @ 2.5% of the amount sanctioned.
Repayment period Maximum 84 Months.
Rate of Interest     
Slab Parameter %
Up to Rs.10.00 Lacs 11.50%
Above Rs.10.00 Lacs To Rs. 25.00 Lacs 11.50%
Above Rs.25.00 Lacs To Rs. 50.00 Lacs 11.70%
Above Rs.50.00 Lacs 11.80%
Security Prime:

·         Hypothecation of machineries purchased as prime security.

·         Bank’s nameplate indicating machinery hypothecated to the Bank to be displayed on factory where the machinery has been installed.

Collateral:

·         Third party guarantee of two guarantors having good credit worthiness and financially sound and   both should be shareholder of the Bank.

·         Equitable Mortgage of title cleared immovable property of the borrower/ guarantors.
Documents 1.     DP Note

2.       Hypothecation of machineries New

3.       Acceptance Letter of Loan Amount

4.       Letter  of guarantee, Instalments, Consent and Lien & Set Off

5.       Equitable mortgage of Factory Land & Building / Plot / residential Building, along with search report and having sufficient value to cover the Loan amount.

6.       Proprietorship / Partnership Letter

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