| Salient Features | A Scheme for Wholesalers and Retailers to meet the following purposes: to meet the working capital needs of trading activities and to meet the term loan requirements for purchase / setting up infrastructure like hoarding, show cases, basic offices, amenities, purchase of delivery van etc.
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| Quantum of Loan | Working Capital (FB & NFB) : Rs. 5 Crores. Term Loan (max) : Rs. 1 Crore. Sublimit upto to 25 % of working capital FB limit can be allowed as cheque BP.
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| Margin | Term Loan : Margin at 25 % on the equipments value. |
| Processing fee | Working Capital : Upto Rs. 25000/- : Nil. Rs. 25000/- to Rs 2 lacs: Rs. 250/-. Above Rs. 2 lacs: Rs. 250/- per lakh or part thereof. Term Loan : 1 % upfront fee. For renewal / modification of limits, 50 % of normal charges to be levied.
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| Interest Rates | Please see the Interest Rate link on home page |
| Repayment Period | Term Loan : Max 48 months (excluding holiday period of 2 months) with min. DSCR 1.50. Working Capital : Renewal every 1 year |
| Security | Primary Security : Immovable property : 50 % on market value. Other tangible security (NSC, KVP, IVP, Surrender Value of LIC Policy, Bonds of All India Financial Institutions): as per existing Bank norms. Collateral Security : Stocks and Book Debts NIL margin. For WC limit above Rs. 1 Crore (OCC). Primary : Stocks and Book Debts with 15 % margin. (Immovable property and / or other tangible security value should be minimum of 100 % of the limit sanctioned. Circle Heads may consider collateral upto 50 % of the sanctioned limit, on a selective basis on business consideration. Collateral of third party can also be accepted in which case offer to create mortgage over the property from the owner and his personal guarantee for the full advance to tbe taken. Deposit of Title Deed should be made by owner of the property himself and not through a Power of Attorney).
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| * BPLR = 12.50 % and BASE RATE = 8.00 % | |
