Overdraft Facility
Cash credit is a loan facility provided to individuals or companies where the Bank allows continuous withdrawal of funds up to a sanctioned limit after obtaining the required security. The borrower can draw funds as needed within the approved limit.
Eligibility
- Individual customers or companies having satisfactory dealings with the Bank
- New customers who are well introduced and creditworthy with satisfactory banker’s / market reports
- Age of the applicant should not exceed 60 years
Amount of Finance
- Up to 50% of the value of the property offered as security as per Bank’s valuation report
Loan Period
- Maximum loan period is one year
Security
- Mortgage of property with clear and marketable title acceptable to the Bank
- The land offered as security should be converted land or building
Guarantee
- Two personal guarantees from persons of adequate net worth acceptable to the Bank
Rate of Interest
Interest shall be charged at the rate fixed by the Bank from time to time or applicable at the time of disbursement. At present, the rate of interest is 14.00% (Reducing Balance Method).
Documents / Formalities
- Loan application with passport size photographs (2 copies each)
- ID proof and income proof of applicant and guarantor
- Income Tax Assessment Order / IT Returns
- Title deeds of property, RTC / Form 9 & 11A, EC, latest tax paid receipt
- Valuation report and legal scrutiny report by the Bank’s panel lawyer
- Approved building plan
- Annual financial statements for the past 2 years (for non-salaried individuals)