V Entrepreneur

Loans to Traders & Entrepreneurs



Purpose:

•    Meeting working capital needs.

•    Acquiring assets for business needs.

•    Non fund based limit (along with fund based limit). 

•    Purchase of commercial property for the purpose of expansion of business can be a part of the term loan and loan can be sanctioned against the security of the property proposed to be purchased.

Eligibility:

•    Traders mainly engaged in buying and selling of goods/commodities either as retailer/wholesaler, subject to stock of goods or receivables held by them should be available for hypothecation.

•    Both Manufacturing and Service activities under taken by MSME units.

•    Existing customers with a satisfactory track record.

•    New customers including take-over based on merit.

•    Applicant must have either sales tax/VAT registration wherever applicable and trade/business license or MSME/SSI registration Certificate or permit issued by recognized body or any statutory authority.

How much you are entitled to?



A.     For Working Capital:

•    20% of the accepted projected turnover is eligible for working capital limit

•    Audited Balance Sheet as per IT Act is required wherever applicable.

•    Non fund based limits should not exceed 50% of total Fund based limit.

 

B.    For Term Loan (repayable within 120 months):

•    75% of the value of the assets to be purchased.

•    80% of the value of the Commercial Vehicle (to be used for the business related activities).



 And



In both the cases (A & B above), the total limit including fund based and non-fund based limit should not exceed 60% of the market value of immovable property as per the latest valuation report.

Quantum of loan:    Minimum - Rs   2.00 lakhs

                                Maximum - Rs 500.00 lakhs.

However, the loan component towards purchase of premises should not exceed 50% of the overall exposure under the scheme with a ceiling of Rs 100.00 lacs.  

Security:

Hypothecation of Equipment/ Machinery/ Commercial Vehicle etc financed by way of term loan.

AND

Mortgage of  property purchased out of bank finance/existing premises to be Renovated/expanded out of Bank finance, if any with 40% margin. 

AND/OR

Mortgage of immovable property including residential/ commercial property with 40% margin on market value.

OR

Term deposit of our Bank/ NSC/ KVP/ Surrender value of LIC policy to the extent of 100% of the limit.

Repayment period

•    Working capital – one year (can be renewed on yearly basis).

•    Term loan – Maximum of 120 months.

Rate of interest

•    
Click Here for Rate of Interest
Guarantor

•   Suitable third party guarantee to be obtained in case of individuals.

•   In case of partnership firm/LLP/Companies, personal guarantee of partners /promoters/Directors to be obtained.

•    In case of individuals, where spouse/close relatives offer their properties as security, they should be taken as guarantors.

For more details contact our nearest branch or call to our toll free no 1800 425 5885.



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