Baroda Overdraft against land and building is a unique product for financing working capital requirements/long term margin requirements of SME borrowers against the security of unencumbered land and building belonging to the unit or Promoters of the unit.
PURPOSE :
- To provide hassle free credit to SME borrowers to meet working capital requirements/augment long term margin requirements.
ELIGIBILITY
- Proprietorship, Partnership firms, Private/Public Ltd. Cos., engaged in Manufacturing and/or Service Sector of any commodity/goods and such activity is not prohibited by law or opposed to public interest established in the line of business for a minimum period of 2 years and financed/proposed to be financed under Sole Banking arrangement.
LIMIT :
- Minimum : Rs. 15.00 Lakhs
Maximum: Rs. 50.00 Lakhs (for Rural/Semi-urban branches)
Rs. 200.00 Lakhs (for Urban/Metro branches)
SECURITY :
- Mortgage of factory land and building and/or any other property (Land & Building) belonging to promoters, viz. Directors, who will also stand as guarantors, Proprietor or Partners.
In case of residential/commercial building, age of property should not be more than 25 years.
MARGIN :
- 40% of the market value of property mortgaged (valuation of the property will be carried out by the valuer on bank’s approved panel/Government approved valuer)
RATE OF INTEREST :
| For Small Enterprises in Manufacturing & Service Sector |
0.75% below Bank’s BPLR from time to time. |
| For Medium Enterprises in Manufacturing & Service Sector |
Bank’s BPLR from time to time |
OTHER FEATURES :
- Simplified assessment methods.
- Submission of stock/book debts statements on half yearly basis.
- Annual inspection of securities.
- Non-fund based facilities allowed by earmarking Overdraft facility.
- Valuation of properties once in 3 years.
To know the current interest rates Click here.
