Loan For Contractors
This scheme provides an opportunity and assists contractors in meeting their fund and non fund based needs like working capital needs, purchase of machinery and equipment, construction of office building, furnishing of bank guarantee etc
Purpose
- For meeting working capital requirement,
- Purchase of machinery ,vehicle loader JCB etc required for the activity,
- Construction /furnishing of office building
- Furnishing bank guarantee
Who Can Borrow
- Contractors approved / registered with Central or State Government Department/ Defense Agencies/Public Sector Undertaking / Private Sector Organization
- Contractors engaged in construction activities in private sector
Nature Of Facility
Fund based
- Cash credit limit
- Term Loan
Non Fund based
- Bank Guarantee
Loan Amount
- Cash Credit Limit -Maximum Rs. 400 lac
- Term loan- Maximum Rs. 100 lac
- Bank guarantee -Maximum Rs. 100 lac
Margin
- Cash Credit Limit – 40 % minimum
- Term loan – 25 % minimum
Rate Of Interest
- The rate of interest as decided by the bank from time to time would be applicable
Security
- Hypothecation of raw material /book debts
- Equitable mortgage of property
Guarantors
- Two guarantors acceptable to the bank
Processing Fees
- 0.5% of loan amount + GST
Share Holding
- 1.50% of loan amount
Documents Required
- Photograph , PAN and KYC documents of borrower and guarantor
- Work order details
- Balance Sheet of last three years, ITR of last three years, Bank statement of business a/c for last six months
- Partnership deed and registration certificate in case of partnership firms, Certificate of incorporation, date of commencement of business and memorandum and article of association in case of companies where applicable
- Relevant documents related to the property being mortgaged like Title Deed, mutation copy, sanctioned map etc as applicable