Overdraft Limits for working capital requirements:
The Overdraft limits shall be sanctioned by the Bank to its constituents / members to enable them to meet their working capital requirements. The Limits shall be sanctioned primarily against the hypothecation of current assets of the respective business entity and / or creating a Bank’s Charge on the security so offered. The limits will be sanctioned for a period of 1 year, renewable on yearly basis. Bank may also sanction adhoc limits over and above the regular limits and also peak season / non-peak season limit.
TERMS & CONDITIONS:-
Overdraft Limit against security of property (LAP).
The Overdraft limits shall be sanctioned by the Bank to its constituents / members to enable them to meet their working capital requirements. The Limits shall be sanctioned primarily against the hypothecation of current assets of the respective business entity and / or creating a Bank’s Charge on the security so offered. The limits will be sanctioned for a period of 1 year, renewable on yearly basis. Bank may also sanction adhoc limits over and above the regular limits and also peak season / non-peak season limit.
TERMS & CONDITIONS:-
- All working capital limits and W.A.E. / L.C.P. limits sanctioned above Rs.5.00 lakh shall have to be backed by collateral security.
- Personal guarantee / surety of proprietor / partners / directors to be obtained.
- Guarantee / surety of at least one Member other than the Proprietor / partners / directors shall also be obtained.
- All current assets shall be hypothecated in Bank’s favour.
- Bank may ask for additional security and / or completion of any other formality, as it may deem fit.
- The working capital limits shall be subject to annual review.
Overdraft Limit against security of property (LAP).
- Limit under this segment shall be sanctioned for Business / productive purposes.
- Limit shall be sanctioned, maximum to the extent of Rs. 2,00,00,000.00 (Rupees Two Crore Only) OR 50% of the market value of the property, whichever is less.
- Loan shall be considered for sanction against the security / mortgage of property(ies) registered in the name of applicant or his / her spouse. The Bank at its sole discretion may also accept as security / mortgage of property(ies) registered in the name of any close relative of the applicant and or any third party / person. However, in all such cases the property holder(s) / owner(s) must be a member of the Bank and shall have to be a one of surety(ies) guarantor(s) in loan.
- The applicant shall be required to furnish a declaration on an affidavit as to the ‘usage’ of the limit.
- The applicant shall ensure that the funds procured shall not be used for speculative, hoarding purposes etc. i.e. other than business transaction.
- The availability of limit shall be for one year, renewable for further period, subject to review. However, the Bank shall be at liberty to recall the limit any time, as and when it deems fit.
