Limits For Business

Eligibility:
Limits are extended to traders and manufacturers for

• Trading activity - Open Cash Credit (OCC)
• Manufacturing Activity - Small Scale Cash Credit (SSCC)

Purpose:

• Business Development.

SECURITY:
Primary:

• Hypothecation Stocks
• Assignment of receivables ( Not exceeding 40% of Total Limits Sanctioned at any point of time

Collateral:

• Mortgage of immovable property/ies (In case the limit is more than Rs. 5 Lacs )
• Personal Guarantee of One / two persons.

Amount of facility:

• Depending upon the constitution of the applicant / borrower as per his eligibility.

Margins :

• Raw Material – 25%
• Stocks in manufacturing activity – 25% to 40%,
• Finished Goods - 25% to 30%
• Stocks in trading activity – 25% to 50%,
• Book Debts ( Receivables) - 25% to 50%
• Maximum amount of limit against book debts (Out of total sanctioned limit) – Not exceeding 40% of limit sanctioned at any point of time.

Rate of Interest
Different rates upto 10 lacs and above 10 Lacs.
Validity:
12 months for limits.