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CASH CREDIT FACILITIES TO INDIVIDUALS, BUSINESSMEN, TRADERS

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 75% of the value of property

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) Equitable mortgage of property for securing the repayment of Cash Credit Limit.

ix) Loanee should produce proof of ownership, valuation certificate, non-encumbrance certificates, and possession certificate, issued by the competent authority regarding immovable property to be mortgaged in favour of the bank in lieu of the loan.

x) Should be income tax payee and should submit last 3 years returns subject to the condition that total advances of the bank shall not exceed 10% of the deposits of the bank.

xi) The borrower shall hypothecate in favour of the bank the entire current assets created besides collateral security of the value of 175% of the Cash Credit Limit sanctioned.

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

xiii) 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.

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

xv) 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.

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

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

xviii) Balance sheet for last three year for existing business and provisional/ balance sheet for next/current financial year.

xix) 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.

xx) 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.

xxi) 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.

xxii) Valuation certificate of an immovable property to be mortgaged should be from govt. authority or govt. approved valuer or architect approved by the bank at the cost of loanee.

xxiii) Bank statement for last six months.