Hypothecation of stock / book-debts credit facility is available as a working capital for development of business against prime security of stock or book debts. Trading / Manufacturing units, Traders, Business community can avail the credit facility.

Applicant details:

  • Last three years balance sheet, copy of 3 year income tax return, copy of Partner’s personal return , Memorandum and Article of Association in case of limited company, resolution for loan application.
  • Tax bill of Property
  • Three photographs of Applicant
  • Business proof of Applicant
  • Applicant’s Pan card / Partner’s Pan Card / Limited Company’s Pan card
  • Bank account statement of last 2 years
  • Stock statement of the business
  • Applicant has to show all original documents to the bank for verification with zerox copy. Original documents will be returned to applicant after verification.

Guarantor details:

  • Photograph-two copies
  • Last tax bill
  • Last 3 year income tax return copy
  • Address proof – electric bill /telephone bill (any one)
  • Photo proof – Pan card / Voter card / Driving license (Any one)

Conditions:

  • The limit will be decided on the basis of turn over (sales) / projected sales i.e. 20% of turnover (sales) or projected sales.
  • Applicant has to provide collateral security to the tune of 80% to 90% of the limit by way registered mortgage of residential premises, office, shop, godown, shed etc.
  • Insurance of stock and mortgage property to be taken in favour of bank by the applicant.
  • Original documents such as share certificate, Sale deed, Tax receipt allotment letter are required for registered mortgage of the property.
  • Title clearance and valuation report will be done by approved lawyer and valuer of the bank. Applicant has to pay their fees.
  • Applicant has to submit stock statement at the end of every month and before 10th of the next month.
  • Two guarantors are required.
  • Applicant has to submit 30 cheques for repayment of instalments and remaining cheques as per bank’s instruction.
  • The applicant has to provide two guarantors.
  • Limit is subject to renewal after 12 months.
  • Applicant has to take share @ 2.50% of the limit.
  • Processing charges of 0.5% will be levied on sanction.