| Sr.No. |
Name of Scheme |
" Ratna-Trade" |
| 01. |
Target Group |
Individual/ Proprietorship/Partnership/Company engaged in Wholesale/Retail trade, Distributors/commission Agents /C&F Agents/Professionals/Small Business/Civil/Govt contractors etc. |
| 02 |
Facility |
Secured Cash Credit |
| 03 |
Purpose |
To meet working capital requirement. |
| 04 |
Quantum of loan |
Maximum Rs. 10 lakhs or 50% of value of property to be mortgaged (whichever is less.) |
| 05 |
Assessment of loan |
Under turnover method. Maximum 20% of turnover
a) For existing units business should be growing i.e. sales, profit should show increasing trend over last few years. Projection should be reasonable and in keeping with past trend/potential.
b) For existing /new units projection should be comparable with present performance/ should be achievable. Abnormal projections should not be accepted. Normally, 15 % to 20 % rise in business may be considered.
c) Own contribution in the form of net working capital should be minimum 5% of turnover or more. |
| 06 |
Period of facility |
1 year ( if operations / performance is satisfactory renewable on annual basis) ) |
| 07 |
Security |
Equitable Mortgage /Registered Mortgage of property in the name and possession of the borrower. Property in the name of spouse may be accepted as security by making the owner either co-borrower /Guarantor (Agriculture land, Non-N.A land should not be accepted |
| 08 |
Margin |
Minimum 50% of value of the property. |
| 09 |
Guarantor |
One acceptable guarantor ( other than co borrower) |
| 10 |
Interest Rate |
AT PLR |
| 11 |
Processing Charges |
Rs 150/- per lakh or part thereof. |
| 12 |
Papers required for assessment |
1. Application Form
2. Declaration regarding relationship with directors / executives of the Bank.
3. Financial Statements of last two years (for existing units) and estimate/projections for current/next year
4. Details of property offered as security with its valuation and title report of approved valuator/advocate
5. Copy of Sale- tax registration (If available) and Copies of Sales-tax returns/assessment for last four quarters
6. Copy of last income tax assessment order / return filed. Of the borrower / co borrower / guarantor.
7. Credit report of borrower, co borrower and guarantor.
8. Confidential report from existing banker in case of takes over. |
| 13 |
Documents to be obtained |
1. Form No. 51-A-Waivers Letter
2. Form No. 51 - Demand Promissory Note.
3. Form No. 55 - cash credit / overdraft agreement of Immovable Property.
4. Continuing security letter
5. Form of Acknowledgement of Debt for an advance against E.M.
6. Memorandum of Deposit of Title Deed /Registered Mortgage Deed.
7. Original title deed in case of equitable mortgage.
8. Legal opinion
9. Valuation report
10. Non-encumbrance certificate
11. Latest assessment and Municipal tax paid receipt.
12. Extract of property card with Bank's charge noted on it. (Within one month from disbursement.)
13. Insurance cover for fire, riots, civil commotion and earthquake should be taken. |
| 14 |
Classification of Advance |
As per activity |
| 15 |
Sanctioning Authority |
As per powers delegated |
| 16. |
Monitoring/precautions |
a. For existing units banking with us, it should be ensured that the performance / operations and future prospects of the activity are good.
b. For units proposed to be taken over from other banks, it should be ascertained from the statement of accounts that the account is satisfactory. Confidential Report may be obtained prior to disbursement.
c. For new units, the projections should be examined to ensure that they are achievable.
d. Pre - sanction visit is essential. Report of the visit is to be appended with the application.
e. Disbursement may be allowed only on completion of all formalities of mortgage.
f. Submission of Post disbursement certificate within 15 days should be ensured.
g. Unit should be visited atleast once in a quarter and report should be kept on record for verification by auditors / inspecting officers. h. In case operations of the account are not found to be satisfactory / as per projections corrective steps be initiated immediately.
i. Branch should ensure that the party is not enjoying working capital limit elsewhere.
j. Sanctioning authority should get the sanction noted from the immediate next higher authority. |
