i. |
Eligibility |
- |
Any Individual, Group of Individuals, Proprietorship/Partnership Firms,Companies etc. |
ii. |
Type of Facility |
- |
Loan and/or Overdraft limit. |
iii. |
Purpose |
- |
For any legitimate requirement of Funds. |
iv. |
Margin |
- |
15% of the Present value of Deposit for General Public and 5% in case of members of staff of Bank. |
v. |
Rate of Interest |
- |
2% and 1% above the applicable rate of intereston respective Deposit A/C for General publicand members of staff respectively. |
| |
|
|
Board of Directors may consider lower rate of interest to the general public, which shall not be less than 1 % over the applicable rate of interest on respective deposit. |
vi. |
Repayment |
- |
As required by the borrower,but not later than the date of maturity of Deposit A/c. |
vii. |
Security |
- |
Pledge of Bank’s own Time Deposit Receipt
and/or Recurring Deposit A/C in the name of borrower or any third party. |
| viii. |
Other Conditions |
a) |
No credit facility to be allowed against the deposits of other Banks. |
| |
|
b) |
Weighted average rate of interest to be charged in case of Deposits of different rate of interest pledged with Bank as security. |
| |
|
c) |
CEO shall have the discretion to relax the condition of margin up to the maximum of 5% in deserving cases on merit of each case. |
| |
|
d) |
Board can further relax the condition of margin to the maximum of 5 % i.e. Bank can grant loan maximum up to 95 % of Bank’s own deposit. |
