1

Purpose

a)for the working capital/any business purpose requirements of the business concern

b) for the construction of shop in the pre-owned land or for purchase of ready built shop/ commercial space for business or for purchase of shop/ commercial space under construction for own business purpose.

2

Eligibility Criteria

• Retail Traders/Wholesale Traders
• Contractors
• Professional and self employed
• Micro, Small & Medium Enterprises Service/ Manufacturing concerns.
• Borrowers can be Individual(s) / Sole Proprietorship / Partnership firm/ HUF/ Joint Stock Company or any other entity engaged in trading/business activity.

• Newly Established Entity /Venture are also eligible for credit facilities under the scheme based on merits.

3.

Type of facility:

Overdraft/Working Capital Term Loan/Term Loan.

4.

Quantum of Finance

• Minimum: Above Rs. 10 lakh
• Maximum Rs.1000 lakh

5.

Margin

35% of realizable value of immovable property for construction/purchase of shop

• Security in the form of NSCs (Margin 25%) /Bank’s Own Deposits (Margin 10%) /LIC Policies (Margin 10%) may be taken to supplement the overall security requirements.

6.

Guarantee

In case the properties offered as security, personal guarantee of all such owners /co-owners.

In case of sole proprietorship concerns guarantee of wife/major son(s) and in case of companies, guarantee of directors of the company to be taken. In case of Firm/ Companies, guarantee of Partners/ Directors is mandatory.

7.

Repayment: 

For Term Loan: Repayable in maximum up to 10 years, including moratorium period of maximum of 12 months, subject to annual review.

For Working Capital Term Loan: Repayable in maximum up to 5 years, subject to annual review.

For Overdraft Facility: Repayable on demand. Credit facility is subject to annual review/renewal. Interest shall be recovered immediately when due.

8.

Prepayment Charges

Nil.

9.

Processing fee

For Term Loan/ Working Capital Term Loan:  @1% of the loan amount with Minimum of Rs.2000/-.

For Overdraft Facility: @ 0.50% of limit sanctioned and to be collected on sanction and at the time of renewal every year.

10.

Documentation charges

Actual expenses with respect to charges for property legal opinion, index, valuation, mortgage fee and stamp papers etc.