Loan Schemes

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Contractor Finance Scheme Loan Application Form

Objectives:

To provide timely and hassle free advance to the contractor community against the work orders issued by various Govt. departments and Govt. undertakings.

Purpose:

To facilitate the contractors to undertake timely execution of work orders by providing adequate and need based running credit facility.

Eligibility:

ALL ‘Special’, ‘A’, ‘B’ ‘C’ and ‘D’ class contractors having minimum three years standing in the said business.


Quantum of Finance:

Gross Working capital requirement - 25% of projected turnover/ gross receipts

Margin:

50% (Maximum Limit under this product shall be Rs 1.00 Crore.)

Security :

Primary:
1. Assignment of receivables.
2. Hypothecation of material at site and other non encumbered fixed assets

Collateral:

Class of Contractor Limit Nature of Security
Special Class Upto Rs.15 lakh 3rd party guarantee of 2 persons of sufficient means
Above Rs.15 lakh 3rd party guarantee of 2 persons and mortgage of immovable property having market value not less than 125% of the limit sanctioned
Class A Upto Rs.10 lakh 3rd party guarantee of 2 persons of sufficient means
Above Rs.10 lakh 3rd party guarantee of 2 persons and mortgage of immovable property having market value not less than 125% of the limit sanctioned
Class B Upto Rs.8 lakh 3rd party guarantee of 2 persons of sufficient means
Above Rs.8 lakh 3rd party guarantee of 2 persons and mortgage of immovable property having market value not less than 125% of the limit sanctioned
Class C Upto Rs. 6 lakh 3rd party guarantee of 2 persons of sufficient means
Above Rs. 6 lakh 3rd party guarantee of 2 persons and mortgage of immovable property having market value not less than 125% of the limit sanctioned
Class D Upto Rs 5 lakh 3rd party guarantee of 2 persons of sufficient means
Above Rs.5 lakh 3rd party guarantee of 2 persons and mortgage of immovable property having market value not less than 125% of the limit sanctioned

Processing Charges:

0.50% of the loan amount sanctioned. * Conditions Apply

Bank Guarantee Facility:  

Against 25% cash margin and collateral security as applicable to the fund based facility of the borrower. All other terms and conditions as per the Bank Guarantee Scheme of the Bank shall also apply.

* Conditions Apply