OVERDRAFT/CASH CREDIT
1. Facilitates the Customer to avail the pre-determined credit limit as per the business requirements.
2. Available in the form of revolving credit for one year, which can be renewed / enhanced based on performance.
3. Running account, where the customer is allowed to operate within the limit prescribed as per convenience and requirement.
4. The amount of Overdraft limit will be decided based on the nature of the business, value of security and the margin provided by the borrower. Entrepreneur having valid statutory / business license, experience / qualification in the line of activity is eligible.
5. Based finance will be considered by the Bank on individual assessment of the proposals. The assessment will be made on Personal investigation, Confidential reports from Market, Other Banks, Chamber of Commerce or any other controlling agency of the business concerned; The balance sheet, Trading account, Profit and loss account Memorandum and articles of association if any, and other relevant documents; The age / type / average balances / present balance / nature of operations during the last six months, of the account with us etc.
6. Generally prescribed Margin is 25%. However, it is decided on case to case basis.
7. Along with prescribed Application, the applicant to submit Financial Statements like Balance Sheet,Trading A/c, P&L Account etc., - audited for past 2 years & projections for next two years.
8. Rate of Interest may range between 15% to 25% and will be assessed on case to case basis. Interest will be calculated on daily product basis and will be applied at the end of every month.
9. Facilities will be secured by way of: hypothecation / pledge of stocks / goods / machinery / equipment etc. And/or Mortgage / Creation of charge on suitable Immovable Properties.