Cash Credit Loan

Eligibility

The reliable and credit worthy member and should have a current account and fair transactions therein the account at least for six months can avail for the for working capital needs of business or industry.

Sanction Limit

Not exceeding Rs.50 lakhs

Repayment Period

The period of operative limit shall be one year, which is renewable every year subject to satisfactory operations in the cash credit Account.

Repayment Installment

Shall not exceed 60 months and is repayable in monthly installments.

Rate of interest

16.5% p.a.

Security

The stocks in trade / raw materials, goods in process and finished products which are in the approved list of the bank and permitted by Reserve Bank of India. 

Margin

Margin in the value of goods to be maintained shall be not less than 40% or a fixed by the sanctioning authority.

Security

Collateral Security may be Immovable property or Life Insurance Policies with substantial surrender value or National Savings Certificates of considerable value and personal surety of atleast one credit worthy person.

Documents required:

– Duly filled and signed loan application in the prescribed form along with audited financial statements concerning to his business to the Branch where he is having banking transactions.

– A small scale industry Registration Certificate issued by Department of Industries.

– Weaving industry Certificate issued by Textile Commissioner in addition to SSI certificate.

– Any other documents required by the bank.