Loan to Traders term Loan : Individual, Properiotorship Firm, Partnership Firm

Eligibility

• The Borrower Should have any type of Traders/ Businessmen/ having license holder, residing in the area of operation of the Bank.

Membership

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

Purpose

• Construction of Commercial Shop
• Purchase of Commercial Shop
• Purchase of Furniture/ Fixture.
• Construction of Godown for storage of goods.
• Renovation, Repairs and addition of existing shop and godown.

Basis for Deciding of Loan Limit

• In case of Construction 25% Margin
• In case of others 20% margin

Maximum Loan sanction limit

• As per the exposure limit is fixed by the Bank to the single borrower and the group borrower.

Moratorium

• If require maximum up to 1 year. Moratorium period may be decided on the type of loan and business activity.

Repayment Period

• From 3 to 10 Years

Repayment Capacity of a Borrower

• Last three years balance sheet, Income tax returns
• In case of project report the loan limit decided on the acceptable projection.
• 35% household can be considered for repayment of loan.

Documents Requirements- Pre-approval

• Last three years Balance sheet
• Loan up to Rs. 10.00 Lacs un-audited financial statements and above Rs. 10.00 lacs Audited Financial Statements.
• Last three years Income tax returns.
• In case of New business activity project report for 3 to 10 years.
• Property Documents.
• Proof of Business such as license.
• Passport size photographs.
• Proof of residence.
• Two guarantors with good net worth.

Other Conditions

• After execution of registered mortgage charge of the Bank shall be noted on the mortgage property.
• The full value of the property shall be insured either from the borrower or by Bank. The insurance policy shall be in favour of the Bank & the charge of insurance will be borne by the borrower.
• The taxes shall paid by the borrower regularly and the proof shall be presented to the Bank.

Interest Rate Calculation

• Interest will be charge on monthly basis as per prevailing rate of the Bank.

Fees and Charge

• 2.5% Linking sgares
• Processing fees as per the Bank Rule
• Stamp duty as per Bank Rule.