Overdraft (OD)

Eligibility

A class members of the Bank who are engaged in profitable business are eligible for availing overdraft

Quantum of Finance (Limit of the overdraft)

  • Minimum Loan Amount - 10 lakhs
  • Maximum Loan Amount - 9 crore

Period of Loan

Business Cash credit is operative for a period of one year which can be renewed or enhanced provided operation on the limit are satisfactory

Security

Advance is made against the mortgage of landed property, plant and machinery and other fixed assets or the hypothecation of goods in trade, raw material in production and finished goods. Deposit of title deed can also be applied if the original prior documents are submitted along with the title to be mortgaged

Margin

An amount equal to the 50% of the market value of the collateral security and 50% of the stock will be fixed as the maximum limit for the BCC. Board has the discretion to enhance the limit of cash credit considering the performance of the operation

Interest Rate

The outstanding under the cash credit will carry interest at the rate of 16.00% per annum with monthly rests. Interest subsidy will be available

Share Linking

Share linking will be 3.5% of the limit sanctioned

Documents to be attached

  • Demand Promissory Note
  • Mortgage deed in the case of legal mortgage and original title deed
  • Possession Certificate
  • Tax receipt (village and building tax receipt)
  • Sketch and Location Certificate
  • Encumbrance Certificate
  • Under taking from the borrower to pay rent, taxes, Insurance etc.
  • Insurance policies
  • Registration Certificate/License of the firm as applicable under local laws
  • Audited Balance sheet and profit and Loss Account for the previous three years and provisional Balance sheet as on a latest date
  • Income tax returns of the previous three financial years
  • Stock statements if applicable and list of items of plant and machinery
  • Brief description on the nature of Business and prospects of the business