Nirmal Ujjwal Credit Co-operative Society Ltd. Nagpur (Multi State)
Microfinance - Loan to Shopkeeper
Purpose
To provide hassle free credit to shopkeeper to meet working capital requirements / augment long term margin / financing of fixed assets related to business activity of the borrower or for expansion of business of the borrower
Type of facility
Fund based working capital
Non fund working capital
Term / Demand loan for development of shop.
Eligibility
Shopkeeper engaged in trading of any commodity / goods and such activity is not prohibited by law or opposed to public interest established in the line of business financed / proposed to be financed.
Business unit should have been established in their line of business minimum for 1 year.
Trading units established by close relatives (viz spouse, parent, brother, sister, son, daughter) of our existing customers with satisfactory dealings, even if these are established for less than 1 year.
Traders should comply with applicable statutory requirements, such as State/Central Sales Tax Registration Certificate, Licence under Shops & Commercial Establishment Act, Registration with Excise Department, etc
Quantum of finance
Maximum limit per borrower based on the area (Rural, Semi Urban, Urban & Metro) where the branch is located. Contact your nearest branch for further details.
Primary security
Hypothecation of stock / book debts / fixed assets of the borrower (as the case may be)
Collateral security
Mortgage (Registered or Equitable) of immovable property and / or any other property (Land & Building but not agriculture land/plot of land/ partially constructed property) belonging to promoters, viz. Proprietor/ Partners/Directors/close relatives, ( viz. spouse, parent, brother, sister, son, daughter ) who will also stand as Guarantors.
In case of property Older than 25 years - the branch will be required to carry out inspection of the property every year at the time of review of facility and ensure that the property is in good physical condition. In case of term / demand loan it shall be ensured that the residual life of the building is at least 5 years more that the repayment period of the loan.
In case, any defect is observed during inspection of the security or in architect's report, branch will be required to ensure substitution of the security having requisite value immediately or ensure liquidation of the facility at the earliest but not later than 12 months period in any case
Note :
Before sanction of any loan verification of property about its clear, marketable, enforceable title must be undertaken by the Branch Head/ Credit In charge and kept on record.
Rate Of Interest : 15.5%
Penal Interest
In case of delayed payment, a penalty of 2% on the overdue amount for the over due period shall be charged.
Period of Loan
Overdraft : 12 months subject to annual review.
Term Loan/Demand Loan : Maximum 60 months
Other Features
Simplified assessment method.
Stocks etc. wherever should be hypothecated.
Submission of stock / book debts statements on yearly basis. However drawing power need not to be calculated based on stock statement.
Bimonthly inspection of primary security i.e stock / fixed asset may be waived. Annual inspection of Property mortgaged to be carried out.
Non-fund based facilities allowed by earmarking Overdraft / loan facility.
Undertaking from the borrower exclusively to deal with our bank.
Obtaining of Balance Sheet and P/L account is dispensed with. However, declarations of annual sales supported by Returns / assessment on sales tax / income tax, etc. be obtained and kept on record at the time of annual renewal.
Borrower to undertake to route all turnover through their overdraft / current account (in case of term/demand loan) with the branch.
