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