Finance

Oriental Bank of Commerce- Clean Loan to Traders

Purpose of Loan:

For meeting Working capital and acquiring assets for business needs.

Eligibility:

Traders who are individuals, firms, companies, co-operative societies, dealing in those goods, which are not prohibited by RBI/Govt.
Small business concerns/agencies providing services such as Xeroxing, dry cleaning, license to deal in petroleum products/LPG, drug license for the applicable business, petrol pump dealers, auto services centers, ISD/STD/PCO booths and others.

Quantum of Loan:

Maximum composite loan of Rs.25.00 lacs.

Rate of Interest:

Upto Rs.50,000/-	at PLR - 2.0 % ie; 10 %
Above Rs.50,000/- and upto Rs.2 Lakhs	at PLR - 1.50 % ie; 10.50 %
Above Rs.2 Lakhs and upto Rs.20 Lakhs	at PLR - 1.00 % ie; 11 %
Above Rs.20 Lakhs to Rs.25 Lakhs	at PLR ie; 12 %

Margin of Loan:

Margin of Oriental Bank of Commerce Trade Loan is 20 %.

Security:

Cash Credit/ Term Loan upto Rs.2.00 lakhs	In case of Cash Credit Limit Hypothecation of stocks (Stock Statement to be obtained on yearly basis & insurance to be done invariably). Hypothecation of assets purchased out of loan amount. Personal guarantee of adequate net worth acceptable to the Bank NIL Collateral. No Financial statements are required except statements of sales, purchases, gross profits, overheads and net profit.
Loan/Limit above Rs.2.00 lakhs and upto Rs.5.00 lakhs	In case of Cash Credit Limit Hypothecation of stocks (Stock Statement to be obtained on yearly basis & insurance to be done invariably). Hypothecation of assets purchased out of loan amount. Collateral security in the shape of NSCs, LIC policy (surrender value) etc. with realisable value of atleast 25% alongwith one third party guarantee of adequate net worth. OR mortgage of immovable property having realisable value equivalent to 75% of the loan amount sanctioned.
Loan/Limit above Rs.5.00 lakhs	Collateral security in the shape of NSCs, LIC policy (surrender value) etc. with realisable value of atleast 50% alongwith one third party guarantee of adequate net worth. OR mortgage of immovable property having realisable value equivalent to 100% of the loan amount sanctioned.