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Cash Credit Limit for Business Firm


Purpose and Eligibility:

 

  • The main objective of the scheme is to provide working capital to Individual Businessman/ Traders/ Proprietor/ Businessmen and Partnership Firms.
  • Applicant must have 3 years’ experience of same business.
  • Professional/ Traders/ firm whose work is to purchase or sell an item, the applicant has full knowledge of the debt driven economics and business.
  • The Business/ Firm must be in profit in last three years.
  • No case should be pending against the firm in court and no tax liability should be pending.
  • Applicant should have the license and registration certificate from appropriate authority.
  • The residence of the applicant and debt driven economic activity/ business/ shop/ should be in the working area of the related bank branch.
  • The applicant should not be defaulter of any bank or financial institution.
  • The applicant and guarantor should be the A/c holder and nominal member of our bank.
  • Credit Score of loan applicant should be 700 and more.

 

Loan Limit:

 

  • The maximum amount of the loan will be 30.00 Lakh, subject to the annual turnover and repaying capacity of the business.
  • Approved Loan limit account should be at least once made zero.

 

Loan Margin Money:

 

  • In case equitable mortgage security, 25% of the approved loan will be as a contribution margin of the applicant.
  • In case hypothecation security, 40% of the approved loan will be as a contribution margin of the applicant.

 

Interest Rate:

 

  • Up to 50000                                          - 10.00%
  • Above 50000 and upto 30.00 Lakh         - 10.50%

 

  • Calculation of interest on a monthly basis, in case of loan overdue penal interest will be charged at an annual rate of 2%.
     

** These rates will apply till the full repayment of the loan.

 

Term of Loan:

 

  • CCL will be sanctioned for the period of one year and should be renewed every year.
  • In renewal of CC Limit, the interest is not owed.
  • Outstanding of loan does not exceed from the sanctioned amount.
  • CC Limit account should not be random and transactions have been throughout the year.
  • Engaged loan does not exceed the available stock.

 

Security:

 

  • Purchased goods from loan will be mortgaged / hypothecated.
  • One and a half times of the loan amount will be kept as collateral security in the form of land/ house, other house and permanent property of a proposed guarantor can be kept as equitable mortgage.

 

Insurance:

 

  • Applicant will have to cover all the risks of credit limit under bankers clause, would be to insure collateral security, the expenses will be borne by the debtor.
  • The insurance charges will be bear by the debtor, the insurance will cover all risks on collateral security up to the sanctioned loan amount.

 

 

** For more information please visit the nearest branch of District Co-operative Bank Ltd. Pilibhit.