Andhra Pradesh Grameena Vikas Bank Mortgage Loan for Trade

Purpose

To provide hassle free finance to borrowers in SSI, Trade and Service sector by means of mortgage of property with adequate value.

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Credit Facility

Following 2 types of credit facility is available for the customers:

1. Cash Credit
2. Term Loan

Category of Borrowers

• Retail traders
• Whole sale traders
• Professional
• Self-employed
• Small business enterprises
• Small scale industries

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Eligibility Criteria

1. Existing customers with a satisfactory track record of three years.
2. Cash profit during last 3 years and net profit in the immediate preceding Year.
3. New borrowers including take-over with minimum existence of three years will also be considered.

Loan Amount

• Minimum of Rs.0.50 lakhs
• Maximum of Rs.10.00 lakhs

Margin

25% for Cash Credit as well as Term Loan

Repayment

• For Working Capital/ Cash Credit Loan: On demand
• For Term Loan: Maximum 60 Months

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Interest Rate

12.50% to 14.25% (depending on activity of finance)

Security

Primary: Hypothecation of stocks and receivables.
Collateral: Tangible urban property with a market value of minimum of 133% of loan by way of Equitable Mortgage. Securities like TDRs, NSCs, LIC policies.etc.90% of the value may be considered.

Insurance

Comprehensive insurance coverage is required for full market value of primary and collateral securities with incorporation of bank clause.

Documents Required

1. Agreement of loan cum hypothecation
2. Guarantee agreement and Arrangement letter etc.
3. Copy of collateral security offered
4. Latest copy of income-tax return/assessment order
5. Statement of account from the existing banker for last 6 months
6. Copies of relevant documents pertaining to license, ownership/tenancy/lease agreement, etc.
7. Stock statement will be obtained only once at the time of execution of documents and once in a year at the time of renewal

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