WORKING CAPITAL LOAN
Objective:To meet the day to day operations mainly for stocks, book debts and overheads expenses of the clients/companies, a short-term loan is financed in the form of working capital loan.
Type of Assistance: Working Capital loan is extended for 1 year and subject to renewal each year on the same or altered terms as may be agreed upon by the banks and the borrowers mutually.
Eligibility:- Financially sound companies.
- Should have been in operation.
Promoters' Contribution:Minimum 30%.
Debt Equity Ratio:Maximum up to 70:30.
|Types of Loan||Prime||Others|
|Consortium Financing||As per consortium decision|
- Based on minimum short term lending rate fixed from time to time.
- Actual rate within the prevailing rate band depends upon creditworthiness of borrower and risk perception.
- Interest is payable quarterly.