Purpose
- To meet the credit needs of trade, commercial activity, other general business/profession, as also for their bona fide requirements;
- To meet educational expenses of family members including near relatives
- To undertake repairs/renovation/extension to the residential/commercial property;
- To purchase / construct residential house/flat, purchase of plot of land for construction of house/ premises for business/commercial use *;
- For Repayment of existing loans availed from other Banks / FI’s conforming to the extant guidelines regarding “takeover” of account.
Note:
- Suitable declaration to be submitted by the applicant regarding the purpose.
- The facility not extended for speculative purposes including investing in equities;
- The facility is not extended to builders/developers/promoters/real estate agents for real estate activities such as purchase of land/construction with intent to sell or holding real estate stock for sale / re-sale purposes.
- *Advance for purpose (d) above to be based on mortgage of property already owned by the proponent.
Eligible Customers
People engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, salaried people, Proprietary firms, Partnership firms, Companies (Pvt. /Public Ltd.,) HUFs (excluding partnership firms where HUF is a partner), Societies, Staff members, NRIs- subject to compliance of Bank’s/RBI guidelines.
INELIGIBLE PERSONS: NBFC, Trust and Partnership firm where HUF is a partner are not eligible for advances under this scheme.
Advances to individuals: maximum age limit
- Individuals in permanent service max. 60 years.
- For Proprietary concerns/Self Employed/non-salaried people – Maximum -70 Years
(Age limit is the maximum age at the end of the repayment Period);
Rate of Interest
| Particulars |
Rate of interest |
| Loan/ Overdraft Reducible (Monthly Reducible Limit) |
1 Year MCLR +2.00% |
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Type of advance
Demand/Term Loan , Overdraft (Reducible/Non-Reducible)
Quantum of advance
The quantum of advance to be related to the value of security, margin requirement , take home pay and repayment capacity of the proponent , subject to limits as under :-
| |
Demand/Term Loan |
Overdraft
(Reducible) |
Overdraft
(Not-Reducible) |
| Individual-Salaried/ Self-employed/ Professionals |
500 |
200 |
NIL |
| Doctor/s- in case of joint accounts all to be doctors |
500 |
500 |
NIL |
| Others i.e. Proprietorship/ Partnership Firm/Company etc. |
500 |
500 |
500 |
