SCHEME  FOR WORKING CAPITAL TERM LOAN

Eligibility: (a) Business firms doing business for last several years

And reporting profit continuously in Financial statements.

(b) should have trade license in the name of the Firm.

© Type of Ownership: Individual/Proprietorship

firms/Partnership firms.

Commodities traded: Grocery/ready made garments/ cloth shop/

Restaurants/Sweets shop etc

Type of Credit facility: Working capital Term Loan

Assessment of Credit requirement:  25% of sales of previous year as working capital requirement out of which 5% Shall be contributed by the applicant-borrower.

Credit limit: Actual requirement as above subject to maximum of Rs 10.00 lac

Security: Primary: Hypothecation of Stocks of goods

Collateral: Pledge of FD/NSC/Assignment of LIC policy with Surrender value aggregating 40% of  the WCTL

Insurance: Stocks to be  insured with bank’s clause

Personal Guarantee: Permanent residents having High Net Worth(HNI)

Good for the amount of credit.

Rate of interest: 14.5% p.a

Repayment: In 18/24 EMIs ( depending on cash flow)

Frequency of submission of stock statement: Quarterly