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.

Basis for Deciding of Loan Limit

• 20% of Turnover
• Up to Maximum 60% of Main security i.e. Movable or Immovable or
• 50% of movable stock plus 60% of immovable property.

Term & Conditions of loan

• After satisfactory appraisal the loans to trader’s & businessman shall be sanctioned for the period of maximum up to 3 years. After the expiry of the period of three years if there was a satisfactory turnover and the account remained in a standard category at due date, the account may be renewed for further period of 3 years. However, review of the loan shall be taken on yearly basis and for that purpose, the financial statements such as Balance sheet, P& L, IT returns, Sale tax returns shall be compulsory.

Collateral Security

• The acceptable collateral security is plot, building, and agriculture land. The mortgage property can be taken as security after verification and proper assessment of its value and marketability. The property owner must be a borrower or guarantors. The charge on security is to be created by way of registered mortgage.

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.

Interest Rate

• Interest will charged on monthly basis as per prevailing banking rates.

Fees and Charge

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