• Term loans are considered to extent of 70-75% of the cost of the new machines.
• Term loan for purchase of second hand indigenous machinery, the margin is @50% of the consideration or 50% of the value as per valuation report whichever is less.
• Term loans for machinery fabricated locally , margin in these cases ranges from 35% to 50%.




Business Enterprises Loan Amount Monthly (Int. Rate) Small Business Enterprises upto Rs. 5 Lakhs 13.35 % Small Business Enterprises Above Rs. 5 Lakhs 13.85 % SSI upto Rs. 5 Lakhs 12.85 % SSI Above Rs. 5 Lakhs 13.35 % IT (Software) upto Rs. 5 Lakhs 13.35 % IT (Software) Above Rs. 5 Lakhs 14.35 % IT (Hardware) upto Rs. 5 Lakhs 13.85 % IT (Hardware) Above Rs. 5 Lakhs 14.80 % Retailer upto Rs. 25 Lakhs 13.35 % Retailer Above Rs. 25 Lakhs 13.85 % Hotel Industries upto Rs. 5 Lakhs 13.85 % Hotel Industries Above Rs. 5 Lakhs 14.35 %

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Margin : 25% margin against raw-materials and 30% against finished goods in case of small-scale industries. 25% against stock & 35% of book debts o/s less than 90 days in case of trading firm/companies.In addition to the prime security of goods, a collateral security of Life Insurance polity/NSCs/Kisan Vikas Patra/Units of UTI/Indira Vikas Patra/Gold bonds/Immovable property, to the equivalent amount of the limit sanctioned should be given.

Business Enterprises Loan Amount Monthly (Int. Rate) Small Business Enterprises upto Rs. 5 Lakhs 14.80 % Small Business Enterprises Above Rs. 5 Lakhs 15.3 % Retailer upto Rs. 25 Lakhs 15.3 % Retailer Above Rs. 25 Lakhs 15.8 % IT (Software) upto Rs. 5 Lakhs 15.3 % IT (Software) Above Rs. 5 Lakhs 15.8 % IT (Hardware) upto Rs. 5 Lakhs 15.8 % IT (Hardware) Above Rs. 5 Lakhs 16.25 % Hotel Industries upto Rs. 5 Lakhs 15.8 % Hotel Industries Above Rs. 5 Lakhs 16.25 % SSI upto Rs. 5 Lakhs 14.35 % SSI Above Rs. 5 Lakhs 15.3 %

For Loan Amount Interest rate as per Quarterly rest Interest rate as per Monthly rest Professionals and Self Employed persons Upto Rs. 5,00,000 15.00 % 14.80 % Professionals and Self Employed persons Above Rs. 5,00,000 15.50 % 15.30 %

 

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BILLS DISCOUNTING FACILITY:

BILLS DISCOUNTING FACILITY We consider two types of bills facility viz. where documents are delivered on payment, i.e. D.P.Bills and where the documents are delivered on acceptance i.e. D.A.Bills.

Margin : 20%

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Margin / Security : Cash margin will be obtained to the tune of 10% to 25% of the amount of the Bank Guarantee and other tangible securities (i.e. Real estate, NSC, Kisan vikas patra, Gold Bonds, LIC policies, Marketable shares etc.) to cover the balance. 100% cash margin will be obtained in case of guarantee in connection with Sales Tax, Income Tax and Excise.

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Margin : Cash margin will be obtained to the tune of 10% of the amount of the Letter of Credit.

Eligibility : Individuals, Proprietory concerns, Partnership firms, Private or Public limited companies maintaining accounts with our Bank.

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Education loan is granted for higher studies in colleges in India and abroad in any educational field in college affiliated with recognized universities,medical colleges,technical institutions,pharmaceutical colleges, Information Technology etc, so that students from poor & middle classes as well as brilliant and needy students can take advantages of the scheme. [The scheme will not cover any correspondence course].

1 WHO WILL BE APPLICANT If student is minor, Parents / Guardian will be applicant/s. In case of a major, student will be the applicant for the loan. 2 CO-APPLICANT Parents/ Guardian of the student will be the Co-applicant. In case of married Student, either Spouse or the Parent(s) / Parents-in-law can be the co-applicant. 3 PURPOSE For higher Education in India or abroad India in any Faculty in colleges affiliated with recognized Universities, medical Colleges, Technical Institution, Pharmaceutical Colleges, Institutions for Information Technologies etc. The scheme will not cover any correspondence course. 4 LOAN AMOUNT Inland ? Minimum Rs.10000/- & Maximum ? Rs. 10.00 lacs Foreign ? Minimum - Rs.50000/-. 5 MARGIN Inland ? 10% on Total Expenditure & Foreign ? 15% of Total Expenditure. * Scholarship / assistantship should be included in the Margin. 6 RATE OF INTEREST 11% p.a. (subject to 0.50% concession in rate of Interest to ?A? rated customer). *** 7 REPAYMENT PERIOD If course period is less than 3 Years ? 84 Months (inclusive of total moratorium period) If course period is more than 3 years ? 120 months (inclusive of total moratorium period). 8 MORATORIUM PERIOD Course period + 6 months (No moratorium period for Loan amount below Rs.1.00 lacs). 9 PENAL INTEREST 2 % p.a. 10 COLLATERAL SECURITY Loan Amount Upto Rs.2.00 Lacs ? No Collateral Security. Loan Amount Upto Rs.5.00 Lacs ? Tangible Securities (Bank?s FDR?s, Govt. Securities etc) or Movable Security (Vehicle) or Immovable Property ? Minimum 60%. Above Rs.5.00 Lacs - Tangible Securities (Bank?s FDR?s, Govt. Securities etc) or Immovable Property ? Minimum 100%. 11 SERVICE CHARGES 0.50 % on Sanctioned Loan amount Subject to maximum of Rs.7500/- (plus Service Tax + Education Cess, as applicable). 12 SURETIES Two Sureties acceptable to Bank. 13 INSURANCE OF STUDENT Life Insurance Policy of student in case of (Foreign Education) should be obtained. Such policy should be assigned in favour of Bank. 14 INSURANCE OF SECURITIES Insurance of securities against risks of Fire, riots, etc., in name of Bank a/c borrower should be obtained (in case of Vehicle & Immovable Security). 15 SHARE LINKAGE 5% of the sanctioned amount in case of Unsecured Loan upto Rs.2.00 lacs & 2.5% of the sanctioned amount in case of Secured Loan.

* Total Expenditure includes Tuition Fees, Term Fees , Living Expenses, Travelling, Cost of Books, Examination Fees, etc.

*** RATING CRITERIA :
To avail the benefit of concession of 0.5% concession in rate of Interest ( ?A? Rating), applicant/s should fulfil any two out of the following three rating criteria.

Basic Requirements :-

1. Admission Letter.
2. Mark Sheet / Certificate for passing last Board / University examination.
3. Students going abroad for study will have to submit the necessary documents such as copy of Passport, copy of Admission Letter, copy of Form I-20 (for U.S), Visa, etc.
4. Applicant should produce year-wise estimated total expenditure which is to be incurred such as Tuition Fees, Term Fees, Living Expenses, Traveling, Cost of Books, Examination Fees, etc.
5. Progress Report of the studies of the student from time to time.
6. Disbursement of loan will be made at stages during the duration of the course of the study as per the requirement as mentioned in the schedule of year wise estimated expenditure.
7. Any scholarship received during the course of study must be intimated to the bank and as far as possible such amount received should be adjusted in loan account.
8. If study is discontinued for whatsoever reason, Bank must be informed and loan amount must be paid immediately.
9. All other documents and information to be provided as per checklist provided with the Application Form.
10. The loan documents should be executed by both the student and the Parent / Guardian as Co-applicant.

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