Loans / advances may be granted against the security of shares /
debentures of Joint Stock Companies upto Rs. 10 lac or upto such limits
and margin fixed by the Reserve Bank of India from time to time
Interest at the prevailing rates shall be charged subject to change
from time to time. Interest will be payable every month. Penal interest
@ 2% over the prevailing rates shall be charged on all the overdue
installments and interest overdue upto 3 months. If interest is overdue
exceeding 3 months, penal interest shall be charged at 16% p.a
Repayment period may be allowed upto 36 months in case of term loans
and in case of CC/OD the same will be for a period of one year in the
first instance. In case the borrower desires to extend the period , it
may be sanctioned subject to such conditions as the Bank may specify
Bank shall follow the procedures for transfer of shares/registering
Banks charge over shares taken as security and shall monitor the
movement of prices of the shares on daily basis. In case of
deterioration in the value of shares, the same shall be disposed off
immediately to recover the loan
