Loan Schemes


Businessman / Traders

Eligible borrower :

  • Individuals, proprietorship firms, registered partnership firms or companies engaged in any lawful business activity
Security :
  • Any tangible asset owned by loan applicant/proposed sureties, having sufficient value commensurate with the amount of loan and which are easily marketable (immovable property, deposits, LIC policies, NSCs, KVPs, vehicles, etc.)
Sureties :
  • Two
Margin :
  • As mentioned under separate sub-heading herein
Amount of Loan :
  • Upto 75% of the project cost and subject to credit exposure limit
Rate of Interest :
  • As decided by the Board and HO circulars
Repayment Period :
  • Normally 5 years maximum. However, the repayment period may be changed depending on the feasibility of the project / repaying capacity / cash flows
Working capital limits :
  • May be allowed according to requirements of the business
Other requirements :
  • Experience in the concerned line of activity
  • Project Report/quotations/estimates, permission/license/approvals from competent authorities like Health Dept., Water/Electricity Dept., Municipality/Panchayat, etc. – wherever applicable
  • Copies of B/S, P/L A/c, I.T. Returns for last 3 years in case of already existing unit
Documentation :
  • Loan Application in the appropriate Form
  • Joint & Several Demand Promissory Note
  • Agreement for loan
  • Agreement for Mortgage/Hypothecation/Assignment of LIC Policies or any other tangible security acceptable to the Bank
  • Agreement for salary deduction u/s 49 of MCS Act if borrower/surety is/are salaried persons
  • The financial unit/securities should be comprehensively insured against all possible risks
  • Letter of continuing security (Form L-4) for OD/CC limits
  • Valuation of assets to be hypothecated/mortgaged (if not new units)
  • Any other document depending on the purpose/security of the loan