i. |
Eligibility |
- |
Any Individual, Group of Individuals, Propritorship/Partnership Firms,Companies etc. who is a bonafide Member of the Bank, including Nominal
member. |
ii. |
Type of Facility |
- |
Loan and/or Overdraft limit. |
iii. |
Purpose |
- |
For any legitimate requirement of funds except for speculative purposes and for purchase of various small saving instruments , like ; KVPs., NSCs etc. |
iv. |
Margin |
- |
10% of Face value of the instrument if repayment of the same is due within two years from date of sanction and 15% of Face value in all other cases. |
v. |
Rate of Interest |
- |
As per Bank’s rules. |
vi. |
Other Charges |
- |
As per Bank’s rules. |
vii. |
Repayment |
- |
As required by the borrower, but not later than the date of maturity of the instrument/s pledged with the Bank. |
viii. |
Security |
- |
Pledge of Govt. Security like ; NSCs, KVPs, other Bonds/Debts Instruments issued by Central or any State Govt. PSU etc in the name of borrower or any third party, who shall require to stand as surety for the facility. |
ix. |
Other conditions |
a) |
Bank’s charge on the instrument to be registered with issuing authority of the respective instrument before disbursement of credit facility. |
| |
|
b) |
No financial accommodation to be allowed for purchase of same instrument which is proposed to be pledge with the Bank. |
| |
|
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. |
