Purpose :
  • Working Capital : for purchase of raw materials etc.
  • Term Loan : for purchase of tools and equipment for carrying out production process.
  • All existing borrowers under Industries, Services & Business (ISB) sector having satisfactory conduct / dealing with the Bank for the last three years and enjoying credit limit up to Rs 10.00 lac.
    Loan Limit :
  • For Small Business, Retail Trade etc: 20% of the annual turnover declared for tax purposes OR for last 12 months turnover in the operative account, whichever is higher.
  • For Professional & Self – employed persons:- 50% of their gross annual income as per Income Tax Return.
  • For Micro & Small Enterprises: As per Nayak Committee recommendations.
  • Margin :
  • 25%
  • Rate of Interest:
  • Rate of interest depends on the profile of the proposed Borrower and varies between Base Rate to BR+5.00% p.a. with monthly rests as per risk rating of account
    Primary Security:
  • Working Capital : Hypothecation of Stocks, Book debts and other current assets.
  • Term Loan : Hypothecation of plant & machinery and assets financed by the Bank.
  • Collateral Security:
  • Depends upon the profile of the Borrower and loan amount subject to Government of India guidelines.
    Repayment Period:
  • Working Capita : On demand subject to review every year.
  • The LUCC card issued is valid for 3 years.
  • Term Loan : 5 to 7 years.