Working Capital Loan

Credit Facilities for Commercial Purposes

Scheme of Working Capital Finance

S No. Title Description
1. Eligibility Any regular member of the Bank engaged in any trade or industry or services or profession.
2. Purpose Working capital requirements.
3. Nature of facility The credit facility may be sanctioned either in the form of CCL or as a Term Loan. The credit limit is to be considered 20% of the projected Sales subject to verification of VAT/Sales Tax Returns of previous years/quarters which ever is lower. Drawing Power (DP) to be calculated on the basis of stock statement. WCTL ( Working Capital Term Loan)
4. Primary Securities Hypothecation Of stocks and Book Debts of the firm outstanding for not more than 90 days.
5. Collateral Security As per merit of each case, by way of registered mortgage of immovable property and/or hypothecation/or pledge of any other tangible security acceptable to the Bank owned by the borrower or surety/ies, who shall have to stand as Guarantor/s.
6. Sureties At least two sureties of good means and enjoying high reputation, subject to satisfaction of Bank.
7. Margin As per merits of each case, nature of security etc minimum 50%.
8. Limit Need based credit limits to be assessed as per Bank’s policy/Rules.
9. Period 12 months, subject to review thereafter. WCTL is however, repayable within a maximum period of 120 months in suitable instalments.
10. Rate of Interest As per Bank’s guidelines from time to time, including penal interest also as per bank’s rules, for non-compliance of term/s of sanction.
11. Insurance All primary and collateral securities are to be insured adequately and comprehensively with Bank’s clause at party’s cost.