CASH CREDIT

CASH CREDIT

Individuals are allowed to avail this facility against the collateral security & personal surety. Individuals and Institutions have to become customer before availing this facility. Limit is sanctioned on the basis of value of collateral security & the repaying capacity of the applicant. Limit sanctioned for a period of one year  Interest on daily products basis Penal interest @ 2% will be charged when the account becomes overdrawn (for the overdrawn amount only) After the expiry of CC limit period 2% additional interest will be charged over the contract rate. Interest debited on last day of every month Withdrawals are allowed only through cheque book.  Charges are applicable for this type of CC facility. Folio charge @ Rs-10 will be charged on this account once in a year on 31st of March. Purpose: These types of loans are issued only for business purpose. Customer has to submit three years balance sheet, profit and loss account, stock statement, project report. Security: Mortgage of collateral security. Sanctioned Limit is restricted up to 50% of the value of collateral security  Stock statement will be submitted before 5th of every succeeding month. Drawing Power Limit (DPL) is restricted as 90% of stock value.(Option to change DPL at account level ). Stock should be insured and the original policy shall be submitted to the bank. Bank pays interest by applying SB interest rate in case of Cash Credit a/cs having a credit balance for the credit period by applying daily product method. The customer is directed to make all the transactions relating to business through this account only. In case of CCs issued for contractors limit is sanctioned on the basis of power of attorney received from the bill sanctioning authorities.

GOLDEN CASH CREDIT

Individuals are allowed to avail this facility against the gold ornaments pledged. Individuals have to become customer before availing this facility. Limit is sanctioned on the basis of value of gold pledged. Limit sanctioned for a period of one year  Interest on daily products basis Penal interest @ 2% will be charged when the account becomes overdrawn (for the overdrawn amount only) After the expiry of CC limit period 2% additional interest will be charged over the contract rate. Withdrawals are allowed only through cheque book.  Charges are applicable for this type of CC facility. Folio charge @ Rs-10 will be charged on this account once in a year on 31st of March. Purpose: These types of loans are issued for business purpose. Security: Pledge of gold. Limit is sanctioned up to 85% of the value of gold pledged. Drawing Power Limit (DPL) is restricted as 85% of stock value. At the time of Closure/ Renewal of a/c an amount @ 0.5% of loan amount subject to a maximum of Rs-500 is collected as closure charges and credited to Miscellaneous Income and Rs-100 towards insurance charge. Same number renewal