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CASH CREDIT FACILITIES FOR INDIRECT AGRICULTURAL AND ALLIED ACTIVITIES (AGRI. & FOOD GRAINS) AGAINST ALL TYPES OF STOCKS/ FOOD GRAINS

AMOUNT OF LOAN: RS. 40.00 LACS

Rate of Interest: 14% P.A. (Calculation of interest rests monthly)

Terms and Conditions:

i) Loanee and guarantors should be nominal member of the bank

ii) Loanee and guarantors should be resident of Chandigarh/Mohali/Panchkula.

iii) Place of business must be located at Chandigarh.

iv) The advancement should not exceed 50% of the value of the stock in trade

v) Full insurance cover of articles of stock in trade in favour of the bank.

vi) 5 Advance Cheques for repayment of loan in favour of the bank

vii) 2 Good guarantors known to the bank

viii) Loanee should be income tax payee and should submit last 3 year returns to the bank.

xi) The borrower shall hypothecate in favour of the bank the entire current assets created.

x) The Loanee shall display the name of the bank as financier at his business premise.

xi) The sanctioning of Cash Credit Limit by the bank shall be made only in case it is satisfied about the viability of the project/proposal.

xii) The applicant should not have any old Cash Credit Limit from any other financial institution.

xiii) The Licensed Contractors approaching the bank for Cash Credit Limit should give a power of Attorney in favour of the bank to receive the cheque from Government, Quasi Government Institutions and to encash the same.

xiv) The bank shall be at liberty to call for additional collateral security/securities at any time.

xv) The legal expenses, fees, registration charges and other incidental charges incurred in connection with the financing shall be borne by the borrower.

xvi) The borrower shall maintain the books of accounts as prescribed by the bank. Borrower shall furnish stock statement as per the following periodicity indicating the opening stock, purchases, sales and closing stock:
Amount of Limit      Periodicity for submission of Statement
Up to Rs.10.00 Lacs      Quarterly
Above Rs.10.00 Lacs      Monthly
Failure to furnish stock statements will attract penal interest @ 2% on outstanding amount for period of non submission of statement.

xvii) The Cash Credit Limit sanctioned should be in running condition by regular drawals and repayments. In other words, the business transaction of the unit should be deposited’ in the Cash Credit Account.

xviii) The Cash Credit Limit shall be sanctioned for period of One year. Renewal of the C.C. Limit will be allowed by the bank at its discretion based on the performance of the unit and also the operation in the Cash Credit Account. Aggregate credits during the year in the limit account should be 2 times of the sanction limit or highest availed limit

xix) Bank statement for last six months.