Corporation Bank Business Loan

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About Corporation Bank Business Loan

Corporation Bank Business LoanEligibility for Corporation Bank Business Loan:

  1. Traders enaged mainly in dealing of goods / commodities either on retail or inexpensive basis.
  2. 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.
  3. Units engaged in manufacturing/processing/ SSI units/Contractors/ Commission agents etc are NOT eligible for loan under the scheme.
  4. Applicant must have either sale tax-registration OR trade/business licence/permit from any Governmental Authority/Recognized system.

Apply For Business Loan

Purpose: Corporation Bank Business Loan

  1. To meet short term working capital facilities.

Nature of Facility:

  1. Demand loan repayable in maximum of 60 months, subject to annual review.
  2. Running account repayable on need by means of properly secured over draft, topic to yearly review/renewal.

Quantum Of Loan: Corporation Bank Business Loan

  1. Minimum loan Rs. 0.50 lakh .
  2. Maximum Rs. 50 lakh.
  3. Rural: Rs. 10 lakh
  4. Semi Urban: Rs. 25 lakh
  5. Urban: Rs. 50 lakh
  6. Metro & Port Town: Rs. 50 lakh
  7. Business unit shall be located within the command area of the branch.
  8. The amount of mortage is arrive at based on estimated turnover.
  9. 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

  1. Immovable property – 35 % of assessed market value.
  2. Deposite of our Financial institution – 10% of acquired value + acquired rate of interest.
  3. LIC policies 10 % of surrender value.
  4. 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.

  1. Age of the building offered as protection not to exceed 20 years.
  2. Loan against continuing security of property already mortgaged to the Bank for any other credit limits NOT permitted.
  3. Multiple loans against the same property not permitted.
  4. Mortgage under the Program against Pari-passu /Second cost against the residence not authorized.
  5. 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

  1. Third party assurance at the attention of the Sanctioning Power.
  2. In situation of Firm/Companies, assurance of Partners/Directors compulsory.
  3. 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

  1. Secured demand loan repayable in maximum of 60 months, subject to annual review. OR
  2. Running account by means of properly secured over draft. Running account facility, topic to yearly review/renewal.
  3. Repayable on need. The limit once approved maintains good for 3 years. Revaluation of residence done, once in 3 years.
  4. Enhancement of mortgage on the foundation revaluation of residence within 3 years not authorized.

Processing Charges: Corporation Bank Business Loan

  1. For Term Loan: 1% of Limit approved mortgage + Folio costs
  2. For Running Account: 0.50% of Limit approved + Folio charges

Prepayment Charges:

  1. NIL

Other Conditions: Corporation Bank Business Loan

  1. Stock insurance not required.
  2. For mortage below Rs. 10 lacs, Stock statement to be submitted yearly & for Rs.10 lacs & above, yearly.

Leading Business Loan Providers

  1. Bank of Baroda
  2. Barclays Bank
  3. Canara Bank
  4. HSBC
  5. ICICI Bank
  6. ING Vysya Bank
  7. Citibank
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