Working Capital
Working Capital
| Sr. No. | Particulars | Hypothecation | Secured Cash Credit | |||||||||||||||||||||||||||||||||||||||||||||||
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| 1 | Eligibility |
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| 2 | Share holder | Applicant should be share holder of the Bank. | Applicant should be share holder of the Bank. | |||||||||||||||||||||||||||||||||||||||||||||||
| 3 | Purpose | For business purpose | For business purpose | |||||||||||||||||||||||||||||||||||||||||||||||
| 4 | Maximum loan | As per assessed limit, maximum as per exposure limit. | As per assessed limit, maximum as per exposure limit. | |||||||||||||||||||||||||||||||||||||||||||||||
| 5 | Margin | Stock: 25% Debtors: 40% |
NA | |||||||||||||||||||||||||||||||||||||||||||||||
| 6 | Security | Primary security: Stock + book debts Collateral security: 110% tangible collateral security (SARFAESI compliant immovable) or 100% liquid security. |
Revised 15.07.2020
110% liquid security or 150% immovable security (SARFAESI compliant) |
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| 7 | Linking share | 2.5% of sanction limit | 2.5% of sanction limit | |||||||||||||||||||||||||||||||||||||||||||||||
| 8 | Guarantor |
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| 9 | Repayment | Facility for the period of three years, subject to review every year & renewal after three years. | Facility for the period of three years, subject to review every year & renewal after three years. | |||||||||||||||||||||||||||||||||||||||||||||||
| 10 | Rate of interest |
All limits where risk rating is carried out on the basis of only audited financials.
Note: The above rate of interest for rating AUB-1, 2, 3 applies to borrowers whose rating is carried out on the basis of audited financials only. Other borrowers will be charged with the "Other" category.
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Note: The above rate of interest for rating AUB-1, 2, 3 applies to borrowers whose rating is carried out on the basis of audited financials only. Other borrowers will be charged with the "Other" category.
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| 11 | Insurance | Full value of stock or minimum 110% of limit. Value of collateral immovable. | Value of collateral immovable. | |||||||||||||||||||||||||||||||||||||||||||||||
| 12 | Processing fee | 0.50% of sanctioned limit + GST (maximum Rs. 1.00 lakh) | 0.50% of sanctioned limit + GST (maximum Rs. 1.00 lakh) | |||||||||||||||||||||||||||||||||||||||||||||||
| 13 | KYC | Mandatory for individual, firm, and company also. | Mandatory for individual, firm, and company also. | |||||||||||||||||||||||||||||||||||||||||||||||
| 14 | Other | Security valuation and search of the property should be obtained from the panel valuer and panel advocate. Discretion for reduction in collateral security is with Board of Directors. |
Security valuation and search of the property should be obtained from the panel valuer and panel advocate bank also. Discretion for reduction in collateral security is with Board of Directors. |
Subject: Revise the security percentage to secured cash credit account
With reference to the above subject, the following changes for security percentage in the introduced working capital products, Point 6, have been revised. Submitted for approval.
| Sr. No. | Particulars | Existing | New Changes |
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| 6 | Secured Cash Credit | 110% liquid security or 160% immovable security (SARFAESI compliant) | 110% liquid security or 150% immovable security (SARFAESI compliant) |