Individual professionals like Medical Practitioners, Engineers,
Chartered Accountants, partnership firms or companies formed by
professionals engaged in providing professional consultancy, service,
etc
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 cash flows
Working capital limits :
May be allowed if required
Other requirements :
Relevant professional qualification
Experience in the concerned profession is desirable
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 (in Form L-4) for OD limits
Valuation of assets to be hypothecated/mortgaged (if not new units)
Any other document depending on the purpose/security of the loan
