Mortgage of House/Flat along with plot. Collateral security of deposits, LIC policies, NSCs, KVPs, vehicles, etc. may be obtained depending
on the risk perspective.
Sureties :
Two (one if the borrower assigns in Bank’s favour LIC Policies (at least 5 years premium paid) with sum assured equivalent to loan
amount or
own deposits equivalent to 50% of loan. )
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 :
Upto 20 years – depending on the income and the age of the
borrower and the amount of loan
Other requirements :
Quotations/estimates, permission/license/approvals from competent
authorities like Health Dept., Water/Electricity Dept.,
Municipality/Panchayat, etc. – wherever applicable, copies of approved
plans
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
Letter of Continuing Guarantee (in form L-4) for OD limits
The financed vehicle/barge/launch/securities should be
comprehensively insured against all possible risks
