PURPOSE:
- To meet temporary shortfall / mismatch in liquidity, for meeting genuine business requirements only.
ENTERPRISES GROUP:
- Small and Medium-sized corporates, business and Trading houses (including partnership firms).
ELIGIBILITY CRITERIA
- Satisfactory credit rating for the last three years
- Latest Balance Sheet etc. should be available.
- Satisfactory financial performance in terms of sales / turnover and profits. Negative variance, if any, should not be more than 10%.
- Satisfactory dealings with the Bank for at least five years.
LOAN AMOUNT:
- Upto 25% of the existing Fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 10 Lakhs and maximum of Rs. 250 Lakhs.
PERIOD:
- Not exceeding 180 days – minimum 90 days
SECURITY
- First charge / Equitable mortgage of fixed assets of the company / firm or extension of existing first charge / equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.50.
- Extension of Charge on current assets for the additional facility ensuring that adequate drawing power is available.
- Extension of all existing guarantees of Directors / Third party guarantees to cover the additional facility.
RATE OF INTEREST:
- 0.5% below the existing rate on working capital limits
PROCESSING CHARGES:
- 0.1% of the amount of loan, with a minimum of Rs. 10,000/- and maximum of Rs. 25,000/-.
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