Business Loans India : Centvyapari Loan Scheme From Central Bank of India
A small business loan is the first step as you will require funds to grow your business.The most important task to obtaining a loan is preparing a business plan. When applying for loan you will want to have an accurate and current balance sheet which will act well when contacting the lenders.
When looking for financing be sure to find the right type of financial institution. Your local bank is usually the best place to start because you probably have information with them already. But, maybe your lender could even be a family member. Keep your options open. When applying for a loan make sure you include your business plan so the bank understands how you plan to receive income and pay back their loan.Information about centvyapari loan scheme from Central Bank of India is given here.
Centvyapari Loan Scheme From Central Bank of India
Eligibility:
All types of Traders including Retailers and Distributors.
Applicability
All Branches
Rate of Interest
BPLR ? 1.00%
Type of Facility and Quantum of Finance
The facility under the scheme may be extended by way of working capital limit (Cash Credit against paid Stock and Receivable upto 90 days) up to a Maximum of Rs.20.00 Lakh per borrower.
The Drawing power to be worked out on paid stock and receivables up to 90 days.
In any case Drawing Power on receivables should not exceed 50% of total DP worked out on paid stock.
The working capital assessment is to be done as per Turnover Method. Assessment should be done on the basis of past performance examined through Financial Statements, Sales Tax Returns for the past years.
Margin
A minimum margin of 25% on stocks and 50% on Receivables (upto 90 days) should be maintained. For limits up to Rs. 5.00 lakh margin of 25% should be kept on the combined value of stock and sundry debtors less sundry creditors. No Drawing Power to be allowed on Receivables beyond 90 days.
Repayment
Repayable on demand � to be reviewed / renewed every year.
Sanctioning Authority
BM in scale = I Rs. 5.00 lakh
BM in scale = II Rs.10.00 lakh
BM in scale = III and above Rs.20.00 lakh
Security
Primary : Hypothecation of stocks and book debts wherever book debts are taken in to account for arriving at drawing power.
Collateral : EM of land and building value of which is
1. At least equal to limit sanctioned in case of limit/loan up to Rs.10 lakh.
2. At least 133% of sanctioned limits in case of limit/loan above Rs.10 lakh
The Property should be non- Agricultural property.
Valuation of property
The valuation of property has to be done by the approved Valuer registered with Indian Institute of Valuers
Inspection Charge
Rs.1000/- per Inspection for any loan amount.
Processing Charges
Processing Charges @ 0.25% of loan amount . In case of renewal of existing limits 50% of applicable rates to be recovered. In case of enhancement in limits the enhanced portion shall be charged at normal rate i.e. at 0.25% and existing portion will be charged at 50% of normal rate.
Documentation
1. D.P. Note.
2. Letter of Continuity.
3. Letter of Hypothecation of Stocks.
4. Letter of Interest Variation.
5. Agreement of Hypothecation of Book Debts.
6. Documents relating to Constitution of the Borrower.
7. Credit Report from the previous Bankers, if any.
Other terms and conditions
1. KYC norms to be strictly followed
2. Borrower should exclusively deal with our Bank
3. Securities offered to the Bank should be comprehensively insured for full value.
4. D.P. should be calculated on monthly basis on the basis of Stock and/or Book Debt Statements submitted.
5. Book Debts should be Certified by the Chartered Accountant on quarterly interval.
6. Operations in the account should be monitored keeping in view that the Credit summations are commensurate with the sales achieved / projected.
7. Stock/ Book Debt Inspections should be carried out on regular basis.Sources : http://www.centralbankofindia.co.in/