Individuals, partnership firms or companies engaged in road and
water transport
Security :
Hypothecation of Vehicles/Barge/Passenger Launch, etc. 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 flexibility of the project
Working capital limits :
May be allowed if found necessary
Other requirements :
Experience in the concerned line of activity
Project Report/quotations/estimates, permission/license/approvals
from competent authorities like Director of Road Transport, Capt. of
Ports, Port Authorities, etc. wherever applicable
Copies of B/S, P/L A/c, I.T. Returns for last 3 years in case of
already existing unit
Valuation of Vehicles/Barge, Launch, latest survey reports in case
of Barge/Launch
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 security (in form L-4) for OD limits
The financed vehicle/barge/launch/securities should be
comprehensively insured against all possible risks
Any other document depending on the purpose/security of the loan
