United Bank of India- United Trade Credit

Purpose of Loan:

Working capital as well as Block Capital finance for the purpose of business in the form of overdraft or Term Loan.

Eligibility:

If you are an existing trader/ business person/ service provider operating and earning profit for atleast two years, you may apply for the loan. If you are engaged in trade/ business/ service with any other activity like agriculture, manufacturing, construction or exports etc. you are also eligible for the scheme.

Quantum of Loan:

Credit line may be in the form of overdraft or term loan and credit limit from Rs.0.50 lakhs to Rs. 100 lakhs may be sanctioned under the scheme.

Rate of Interest:

Interest rate is BPLR + 0.75 i.e. 12.75% p. a.

Security:

• Mortgage of unencumbered and marketable immovable property and/ or securities like NSCs/ KVPs/ LIC policies etc.
• The inventories, receivables and other available movable fixed assets shall also be hypothecated to the Bank as collaterals.

Margin:

• 40% Margin on the value of mortgaged property
• 20% on the value of NSC
• KVP and LIP (surrender value) both for term loan and overdraft facility.

Repayment of Loan:

• The term loan is to be repaid within a maximum period of 60 months by equal monthly installments commencing one month after the date of disbursement.
• In case of overdraft the limit shall be valid for 12 months and renewable thereafter upon review.

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