OVERDRAFT/CASH
CREDIT
Features:
1. Facilitates the Customer to avail the
pre-determined credit limit as per the business requirements.
2. Available in the form of revolving credit for one
year, which can be renewed / enhanced based on performance.
3. Running account, where the customer is allowed to
operate within the limit prescribed as per convenience and requirement.
4. The amount of Overdraft limit will be decided
based on the nature of the business, value of security and the margin provided
by the borrower. Entrepreneur having valid statutory / business license,
experience / qualification in the line of activity is eligible.
5. Based finance will be considered by the Bank on
individual assessment of the proposals. The assessment will be made on Personal
investigation, Confidential reports from Market, Other Banks, Chamber of
Commerce or any other controlling agency of the business concerned; The balance
sheet, Trading account, Profit and loss account Memorandum and articles of
association if any, and other relevant documents; The age / type / average
balances / present balance / nature of operations during the last six months, of
the account with us etc.
6. Generally prescribed Margin is 25%. However, it
is decided on case to case basis.
7. Along with prescribed Application, the applicant is
to submit Financial Statements like Balance Sheet,Trading A/c, P&L Account
etc., - audited for past 2 years & projections for next two years.
8. Rate of Interest may range between 15% to 25% and
will be assessed on case to case basis. Interest will be calculated on daily
product basis and will be applied at the end of every month.
9. Facilities will be secured by way of:
hypothecation / pledge of stocks / goods / machinery / equipment etc. And/or
Mortgage / Creation of charge on suitable Immovable Properties.
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