Loans to Traders & Entrepreneurs
• 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.
• 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).
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.
Hypothecation of Equipment/ Machinery/ Commercial Vehicle etc financed by way of term loan.
Mortgage of property purchased out of bank finance/existing premises to be Renovated/expanded out of Bank finance, if any with 40% margin.
Mortgage of immovable property including residential/ commercial property with 40% margin on market value.
Term deposit of our Bank/ NSC/ KVP/ Surrender value of LIC policy to the extent of 100% of the limit.
• 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
• 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.