Eligibility

• Hypothecation Loan limit may be sanctioned by way of hypothecation of trading stock. The loan may be granted to all type of category having any type of business activity holding the regular stock in business. The loan can be sanctioned to an Individual, Proprietorship farm, partnership farm and companies.

Membership

• The applicants and the guarantors should be permanent members of the Bank.

Basis for deciding loan limit

• 20% of turn over.
• 75% of working capital gap.
• 70% of present stock statement.

Guarantors

• Two guarantors with good network.
• Should not be defaulter of Bank.

Documents required

• Last three year Balance Sheet.
• Loan up to Rs.10.00 lacks un – audited financial statements and above Rs.10.00 Lacks audited financial statement.
• Last three years income tax returns.
• Incase of new business activity project report for three to five years.
• Property documents.
• Proof of business license.
• Passport size photographs.
• Proof of residence.

Collateral security

• Primary security is stock in business.
• The acceptable collateral security is plot, Building, and agricultural land
• The liquid security like fixed deposit, N.S.C, LIC policies

Interest Rate

• Interest will be charge on monthly basis as per the prevailing rate.
• penal interest 2% will be charged in case of default.

Fees and charges

• 2.5% linking shares.
• Processing fees as per the Bank rule.
• Stamp duty as per the bank rule.