Individual / Sole Proprietorship / Partnership firm/HUF/ Joint Stock Company or any other entity engaged in trading/business activity either on retail or whole sale basis for a period of 1 year prior to seeking sanction of loan.
Units engaged in manufacturing/processing/ SSI units/ Commission agents /Contractors are also eligible for loan provided stock is available /held by them for hypothecation.
Applicant must have either sales tax-registration OR trade/business license/permit issued by any Statutory Authority/Recognized body.
For providing short term working capital facilities.
Minimum Loan Amount : Rs.2 lakh
Maximum Loan amount:
Port Town[other than Metro ] & Urban Centres
Semi Urban centres
Business unit shall be situated within the command area of the Branch.
Loans under the scheme shall be fully secured after maintaining prescribed margin against each type of security as mentioned here below. This is in addition to hypothecation of stocks/ receivables.
Equitable mortgage of land and/or building [other than agricultural property] AND/OR pledge of specified financial assets viz. Term Deposits of our Bank, LIC Policies and National Savings Certificates and
Hypothecation of stock-in-trade and receivables of the borrower.
Age of the Building offered as security shall not exceed 30 years. However, residual /balance life of the building shall be at least 5 years more than the repayment tenor.
Rate of Interest
Floating rate of interest is linked to the MCLR Rate & subject to annual reset.