CASH CREDIT FACILITY

CASH CREDIT ACCOUNTS– FOR BUSINESS COMMUNITY

RATE OF INTEREST:

Upto 25 Lakhs   : 11% p.a.
 25 Lakhs and above  : 12% p.a.
50 Lakhs and above  : 11.50% p.a.
1 Crore and above    : 10.50% p.a.
3 Crore and above   : 9.50% p.a.
4.5 Crore and above   : 9% p.a.
6 Crore and above   : 9.00% p.a

FEATURES

1. 1. Limit up to Rs.2.00 lakhs  will be sanctioned against personal sureties of members (MAY BE EXTENDED BY BOARD UPTO RS.5.00 LAKHS).
   2. Limit above Rs.2.00 lakhs  will be sanctioned against sufficient security of property i.e. equitable / regd. mortgage of property and personal surety of 2 members.
   3. Maximum bank finance will be 90% of one quarter sales or 60% of value of property.
   4. Limit is sanctioned against hypothecation of stock with maximum 30% margin less sundry creditors.
   5. Limit on book debts on sundry debtors with 50% margin (up to 90 days).
   6. Limit is sanctioned for one year and renewed every year. On renewal, fresh guarantee should be obtained from the same surety if not changed.
   7. Drawing power will be calculated on sundry debtors, up to 90 days.
   8. Incentive of 0.50% interest will be allowed if utilization of limits will be more than 50% on quarterly average.

DOCUMENTS REQUIRED

1. 1. Audited balance sheet for 3 years with profit & loss account.
   2. I.T.R. of borrower/ sureties for 3 years.
   3. Provisional balance sheet if required.
   4. Valuation of property from professional / Govt. approved valuer.
   5. Legal report of property from bank’s advocate.
   6. Latest house tax receipts .