Objectives:
Businessmen play a pivotal role in shaping the economy of rural & semi urban/ urban areas. The farmers and other people based in villages as well as in semi-urban/ urban areas depend upon these businessmen having their establishments in the area for their day to day requirements. The scheme has been developed with a view to extend cash credit limit to traders etc. to buy stocks for expansion of their business and also to meet the daily requirements of rural/ semi-urban/ urban people. The scheme is also expected to cover small and medium enterprises, which are running their units within the area of operation of Bank.
Eligibility:
Persons engaged in the trading/ commerce activities & MSME are eligible for the facility.
Period:
Cash Credit Limit is granted for a period of one year (12 months) subject to renewal after review.
Margin:
Minimum 25% of the stocks &
Minimum 40% of the book debts (for MSME units 25% of the book debts)
Security:
1. Up to Rs.10.00 lacs
i) Hypothecation of stocks in trade, Book Debts, etc
ii) Third party guarantee of two persons having substantial net financial means acceptable to the bank.
2. Over Rs. 10.00 lacs
i) Hypothecation of stocks in trade, Book Debts, etc. ii) Third party guarantee of two persons having substantial net financial means acceptable to the bank.
iii) Mortgage of immovable property like house, shop/ commercial plot of land, etc. whose value should not be less than the limit amount.
(As per the RBI guidelines, no collateral security should be obtained for loans up to Rs.10.00 lakh under MSE Sector.)
Processing Charges:
0.50% of the sanctioned amount.
0.10% of the limit amount on renewal of facility.
* Conditions Apply