Business Loans India : UCO Trader Loan From UCO Bank
Establishing a business is not everybody’s cup of tea. You have to work hard, give more than your hundred per cent and make right moves at right times using all your experience and technical knowledge of the business.
One of the biggest challenges for any business is how to arrange for the required capital investment. If you are starting a new business, this stage is the first major difficulty that you will face. Usually, business entrepreneurs adopt different sources of finance. In case of a body corporate, initial public offer may be invited; sole proprietors can opt for business loans.
Business loans can be used to expand an existing business or to bring a new business into existence. Different finance options are available in the loan market. There are a variety of programs and lenders available. So, it’s important to understand and evaluate your specific requirements and find a loan that fits your description. Information about UCO Trader Loan from UCO Bank
UCO TRADER LOAN FROM UCO Bank
It is a loan for financing working capital and Term Loan needs of Retail and Wholesale trading activities other than Export. Retail and Wholesale trade in various types of commodities (not services) excluding those items which are specifically prohibited/restricted by the Bank, are financed through this scheme. Fund based Advance is granted by way of Cash Credit against stock as well as Book debt and Term Loan for acquisition of fixed assets to run the trade and business.
Eligibility
Existing enterprises engaged in business for at least 2 years and earning profit during the last 2 years.
Quantum of loan
Minimum Rs. 1 Lac and Maximum Rs 125 Lacs
Within fund based limit of Rs. 125 lac, term loan up to Rs. 25 lac can also be sanctioned for acquisition of fixed assets. Repayment period of Term Loan not to exceed 60 months. Besides the above quantum of fund based limit, up to 50% thereof can also be sanctioned by way of Inland LC/Bank Guarantee if needed.
Salient features
* No margin for Cash Credit is required
* Margin for Term Loan, LC & BG is 25%
* Application is simple; Balance Sheet is not required for limit up to Rs 10 lacs and not compulsory for limit below Rs 50 lacs subject to certain conditions.Security
* Primary-Hypothecation of stocks and book debt.
* Collateral-100% for Cash Credit (against stocks only ) and Term Loan, 125% for Cash Credit(against stocks and debtors)UCO Trader Interest Rate
Spread over BPLR
-1.00%Effective Rate (From 01.07.07)
12.50%Processing Charges- 0.50% of fund based limit, 0.25% of Non-Fund based limit.
Sources : http://www.ucobank.com/