Cash Credit Loan
We provide Cash Credit Limit to meet, the working capital requirements based on your current and future expansion plans against the underlying securities i.e. Equitable mortgage of the property, Stock. We help you to meet your everyday operational fund requirements and immediate business obligations.
Funds are provided based on the underlying operational efficiency of the company/firm/unit and integrity.
Requirements
- Member of the Belagavi Shree Basaveshwar Co-Operative Bank Ltd.
Holding either single account or joint account with other family members’ viz., father, mother, wife, son or daughter with regular source of income.
- Individuals who may be employed/self-employed in business having regular income.
Permanent employee of Central/State/Defense/Police Force/Public or Joint Sector Undertaking/reputed firms/established Educational Inst/Professional/Businessmen having regular income.
- SMS Alerts for Transactions.
Key Points
- Interest is to be paid only on the outstanding balance
- Low rate of Interest.
- Security required as per Banks Prescribed norms.
- Other conditions in line with working capital finance points.
Other Features
- Personalized service and assistance by our Bank.
- Assessment on easy terms and conditions.
- Working capital finance not to be used for buying long term assets or investments.
- Adequate Drawing power to be maintained.
- This facility is subjected to renewal / revival once in Two years.
- Priority sector advances are encouraged.
- Eligibility calculated as per requisite Working capital.
- Service Charges and Share money will be as applicable.
- Collateral security required as per Banks Prescribed norms.
Security
The cash credit advances shall be granted by the bank against following securities:
- Against the personal sureties of two guarantors acceptable to the bank.
Equitable mortgage of the property of the borrower to the minimum extent of 1.5 times (150%) the limit sanctioned. If the principal borrower is not in position to offer such property for equitable mortgage, the bank may accept the equitable mortgage/ collateral securities of the sureties. The title of the property shall be examined by an advocate recognized by the bank. Also the value of the property shall be assessed by an assessor authorized by the bank. Charges for such examinations shall be borne by the borrower.
Criteria for Loan Sactioning
- Application in Prescribed form
- Two photographs of Borrower and Guarantors
- Address proof of Borrower and Guarantors
- Income proof, Copy of Income Tax Return, Financial Statement of the Firm, Sales Tax returns etc.
- Profile of Guarantors.
- Loan should be guaranteed by two financially sound members having net individual worth twice the loan amount.
Documentation
- Brief history and profile of Company and its promoters.
- Bank Statements for last 12 months of all existing loan including Cash Credit if any.
- Audited Financials for last three financial years.
- Sanction Letter of an existing bank limit (if any).
- Any other documents as required by the bank at a later stage
Officially Valid Documents
Two latest passport size photographs and any one of the officially valid documents as Identity and Address proof from the list below,
- Aadhar Card
- PAN Card
- Voter's Identity Card
- Driving License
- Passport
- Ration Card
- Electricity Bill
General Rules
- Bank reserves the right to alter, revise and cancel the rules from time to time.
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