Small Business OverDraft

Purpose of Loan       To meet Working capital Requirement of trading or service unit
Eligibility of borrower ·         Only Businessman or Job worker, Proprietary Firm, Partnership Firm and Private Limited Company are eligible.·         Business or service units engaged in the activity continuously for 2 years.

·         New units to be set up by existing borrowers having satisfactory dealing with us.

·         Existing borrowers can convert their cash credit limit to SBOD limits.
Quantum of finance ·         Maximum Limit: Rs. 100 Lacs (20% of Annual Projected Turn over or 75% of Realizable value of immovable property whichever is less.)
Share Linkage Purchase of Bank’s share is optional to the borrower.
Repayment period –        12 Months ( Subject to annual renew )
Rate of Interest 11.50%  p.a. (Up to Rs. 25.00 Lacs )11.70%  p.a. (Above Rs. 25.00 Lacs to Rs. 50.00 Lacs)

11.80%  p.a. (Above Rs. 50.00 Lacs to Rs. 100.00 Lacs)
Security Equitable mortgage of immovable Property.
Documentation 1.       D.P. Note2.       Letter of Continuing Security

3.       Mortgage of immovable property

4.       Guarantee Letter

5.       Undertaking Letter ( as per Prescribed Format )

6.       Acceptance Letter of Loan Amount

7.       Letter of Lien and set off

8.       Letter of sanction duly acknowledged by the borrower and guarantors.