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Credit facilities for commercial purposes - Scheme of Working Capital Finance
| i | Eligibility | Any regular member of the Bank engaged in any trade or industry or services or profession. |
| ii | Purpose | Working capital requirements. |
| iii | Nature of facility | 1) The credit facility may be sanctioned either in the form of CCL or as a Term Loan. 4) WCTL ( Working Capital Term Loan) |
| iv | Primary Securities | Hypothecation Of stocks and Book Debts of the firm outstanding for not more than 90 days. |
| v | Collateral Security | As per merit of each case, by way of registered mortgage of immovable property and/or hypothecation/or pledge of any other tangible security acceptable to the Bank owned by the borrower or surety/ies, who shall have to stand as Guarantor/s. |
| vi | Sureties | At least two sureties of good means and enjoying high reputation, subject to satisfaction of Bank. |
| vii | Margin | As per merits of each case, nature of security etc minimum 50%. |
| viii | Limit | Need based credit limits to be assessed as per Bank’s policy/Rules. |
| ix | Period | 12 months, subject to review thereafter. WCTL is however, repayable within a maximum period of 120 months in suitable instalments. |
| x | Rate of Interest | As per Bank’s guidelines from time to time, including penal interest also as per bank’s rules, for non-compliance of term/s of sanction. |
| xi | Insurance | All primary and collateral securities are to be insured adequately and comprehensively with Bank’s clause at party’s cost. |