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 value of security 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 purpose and repaying capacity of the borrower
Working capital limits :
May be allowed if found necessary
Other requirements :
Project Report/quotations/estimates, permission/license/approvals
from competent authorities like Health Dept., Water/Electricity Dept.,
Municipality/Panchayat, etc. – wherever applicable – depending on the
purpose of loan
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
Valuation of security
Any other document depending on the purpose/security of the loan
