Facility Overdraft or Loan
Working capital requirements · Development of shop (e.g. purchase of equipment, PC, air conditioner, furniture etc and not for purchase of shop), for need based requirements · Non-fund based facilities (i.e. Bank Guarantee and Letter of Credit).
Individuals, Proprietorship & Partnership Firms, Private Ltd, Companies and Registered Societies engaged in trade of any commodity/goods required by the community and trading in them is not prohibited by law or opposed to public interest (manufacturing unit excluded). · The business units should have been established in the line of business for a minimum period of 2 yrs. · Trading units established by our existing customers with satisfactory dealings or their close relatives, even if these are established for less than 2 yrs. · Trading units of non-customers having less than two years establishment; with the prior approval of Head Office
Limit Minimum: Ksh.1.00 million Maximum: Ksh 30.00 million Assessment of working capital limit: The credit limit is to be considered as under: 20% of the projected sales subject to verification of actual sales of previous years/quarters from VAT return. OR Assessment of loan for shop development Need based finance to be considered as per requirements subject to a maximum of 75% of the investment proposed in the fixed assets. However, working capital advance & shop development loan together should not exceed Advance Value of collateral security or Ksh 30.00 million whichever is less.
Margin · 50% on market value as per recent valuation report of immovable property. · 10% on Bank’s own FDRs · 20% on Fixed Deposit with Bank of Baroda. · 10% on Government Bonds etc.
Period 12 months subject to annual review
Repayment Loan – Maximum 60 months including moratorium (depending on repayment capacity)
- Tangible collateral securities in the form of Legal charge of land (not agricultural land) and building · Property to be under legal charge may be ONLY in the name of either borrower, Proprietor, Partner, Director or the close relatives. · Property standing in the name of third party can also be accepted, provided: Owner of property offers personal guarantee. · Undeveloped property, like plot of land should not be taken as security. Valuation: Branch to obtain a valuation report on the property to be under legal charge from Bank’s approved valuer. Further the valuation is to be done once in three years. Valuation fees are to be borne by the applicant/borrower.
- Government Bonds, Bank’s Term Deposits, standing in the name of the proprietor, partner, director, or guarantor (shares are not to be accepted as a security).