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:
Based on work orders, freshly allotted/ under execution etc.
Margin:
40% (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