| 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.
|
