About Corporation Bank Business Loan
Eligibility for Corporation Bank Business Loan:
- Traders enaged mainly in dealing of goods / commodities either on retail or inexpensive basis.
- Individual/ Sole Proprietorship / Partnership firm/HUF/ Joint Stock Company or any other entity engaged in trading/business activity for a period of 1 year prior to seeking sanction of loan.
- Units engaged in manufacturing/processing/ SSI units/Contractors/ Commission agents etc are NOT eligible for loan under the scheme.
- Applicant must have either sale tax-registration OR trade/business licence/permit from any Governmental Authority/Recognized system.
Purpose: Corporation Bank Business Loan
- To meet short term working capital facilities.
Nature of Facility:
- Demand loan repayable in maximum of 60 months, subject to annual review.
- Running account repayable on need by means of properly secured over draft, topic to yearly review/renewal.
Quantum Of Loan: Corporation Bank Business Loan
- Minimum loan Rs. 0.50 lakh .
- Maximum Rs. 50 lakh.
- Rural: Rs. 10 lakh
- Semi Urban: Rs. 25 lakh
- Urban: Rs. 50 lakh
- Metro & Port Town: Rs. 50 lakh
- Business unit shall be located within the command area of the branch.
- The amount of mortage is arrive at based on estimated turnover.
- Permissible credit limits would be up to 20% of estimated turnover subject to the condition that estimated turnover shall not exceed 25% yearly income of immediate before year.
Margin: Corporation Bank Business Loan
- Immovable property – 35 % of assessed market value.
- Deposite of our Financial institution – 10% of acquired value + acquired rate of interest.
- LIC policies 10 % of surrender value.
- NSCs – 25 % of face value for NSCs accomplished one season and above.
– 35% of face value for NSCs complet less than one year
Security: Corporation Bank Business Loan
Loan of immovable residence & / OR Commitment of specified financial assets & hypothecation of stocks in business and receivables.
- Age of the building offered as protection not to exceed 20 years.
- Loan against continuing security of property already mortgaged to the Bank for any other credit limits NOT permitted.
- Multiple loans against the same property not permitted.
- Mortgage under the Program against Pari-passu /Second cost against the residence not authorized.
- Property mortgaged for loan under this scheme not to be offered as continuing security for any other limits.
Where Site/Plot is taken as protection to Corp Vyapar mortgage, Real estate Bank loan for development of home is authorized against continuous protection of such Site/Plot. However, in such situations, margin is to be managed on cost of development of home at 35%.
Guarantee: Corporation Bank Business Loan
- Third party assurance at the attention of the Sanctioning Power.
- In situation of Firm/Companies, assurance of Partners/Directors compulsory.
- Where the residence provided as protection is in the name of a third celebration, such third party should necessarily join as guarantor to the money score service.
Repayment: Corporation Bank Business Loan
- Secured demand loan repayable in maximum of 60 months, subject to annual review. OR
- Running account by means of properly secured over draft. Running account facility, topic to yearly review/renewal.
- Repayable on need. The limit once approved maintains good for 3 years. Revaluation of residence done, once in 3 years.
- Enhancement of mortgage on the foundation revaluation of residence within 3 years not authorized.
Processing Charges: Corporation Bank Business Loan
- For Term Loan: 1% of Limit approved mortgage + Folio costs
- For Running Account: 0.50% of Limit approved + Folio charges
Other Conditions: Corporation Bank Business Loan
- Stock insurance not required.
- For mortage below Rs. 10 lacs, Stock statement to be submitted yearly & for Rs.10 lacs & above, yearly.
Leading Business Loan Providers
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