Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc established as Proprietorship / Partnership firms, Limited Companies
1. Engaged in the business line at least for the last 3 years
2. Having Audited Financial Statements
3. Entry level credit rating should be SBS 5. No deviation to be considered.
For Meeting Working capital needs.
Line of Credit by way of fund based working capital limit, Bank Guarantee/ letters of credit
Minimum Rs.10 lacs and Maximum Rs.500 lacs
1. 30% of last two years average turnover.
2. Of this, 2/3rd will be used for Fund Based facility and 1/3rd for Non-fund based facility such as BG/LC.
Minimum 20% for fund based facility. Though the limit will be treated as unsecured, contractors will have receivables which should be charged to the Bank and a margin of 20% maintained thereagainst.
Minimum 15% cash margin for non-fund based facility
As per prevailing rate of interest structure in terms of HOBC:113/167 dt. 13-12-2019
As per Extent guidelines of the Bank
Primary :
i.) First charge on the unencumbered assets of the company/firm both current and fixed assets.
ii.) Margin on non fund based limits.
Collateral :
Suitable collateral to be obtained so that asset cover of 1.50 is maintained.
Assets charged to the bank to be comprehensively insured covering various risks including civil commotions and riots. The policies should be renewed from time to time and copy retained on branch record. Bank’s interest to be got noted in the insurance policy. Separate insurance policy to be obtained for the mortgaged property
The bank will conduct its own due diligence (including pre-sanction visit).
As per extant delegation of power
To be obtained according to the release of fund covering specific facility
| For Fund based | For BG - | For LC |
|---|---|---|
| IFD -10 | ||
| D.P Note | LG-12 | Application for Documentary Credit |
| Bearer letter | LG-13 | LG-13 |
| L-516 | LG -15 | Counter Guarantee |
| OD – 194 |
( Besides, documents required to be obtained as per respective state laws) Other supporting documents as applicable i.e.
- Identity/Residence proof
- Photograph of borrower/co – borrower and guarantor with their signatures attested by the their Bankers.
- Balance sheet and profit loss statement of last three years in case of firms/companies.
- Partnership letter in case of partnership firms.
- Copy of Memorandum and Articles of Association, certificates of Incorporation and Commencement of business duly attested and copy of board resolution for availing the loan in case of limited companies.
All branches of the Bank.
