2>1.OBJECTIVE

To meet working capital requirement for trading activities either by traders OR by other services sector entrepreneurs doing trading of materials/goods/equipments required for rendering service in which they are engaged.

2. ELIGIBILITY

All MSME entrepreneurs doing trading activities exclusively or as a part of service activities trading the materials/goods/equipments without any transformation for rendering services in which they are engaged with satisfactory experience of business and having financial statements of at least two preceding financial years.

3. PURPOSE

Financing of stock and book debts (not older than four months)

4. NATURE OF FACILITY:

Cash Credit – H &/Or CC (BD)

5. EXTENT OF LOAN:- Need based

Minimum – Above Rs.10 lakh

Maximum – Rs.500 lakh

6. MARGIN:

Against Stock & Book Debts- 25%, The sanctioning authority may stipulate higher margin.

7. SECURITY

1. Primary Security- Hypothecation of stocks and Assignment of book debts

2. Collateral Security- Minimum 150% (Realizable Value) of the loan amount in the form of mortgage of immovable property and/ or other liquid security duly charged to the bank.

8. RATE OF INTEREST

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9. INSURANCE

ecurities mortgaged or hypothecated to the Bank shall be insured at borrower’s cost.