Purpose : For establishment of new business.
For expansion of existing business.

Eligibility : Proprietorship/Partnership concerns/ Private Limited Firms with sole Proprietor/Partners/Directors over 18 years of age engaged in Relevant business activities.

Loan Amount : Need based finance - Computed on the basis of prevalent policy of the Bank for assessment of credit requirement.

Margin : For Trading Activity - 40%
For Small Scale Industries - 25%

Small Scale Industries:
(a) up to Rs.2.00Lacs
(I) Against Hypothecation of Stocks 13.00%
(II) Hyp. of stock and Mortgage of Property 12.75%
(b) Above Rs.2.00Lacs 14.00%

Repayment Period: Cash Credit Limit shall be sanctioned for one year and shall be allowed to renewed further subject to performance of account as Per norms/policy of the Bank from time to time.

Security :
Upto Rs.1.00 Lacs - Hypothecation of Stocks and third party Guarantee of two persons having sufficient means.
Above Rs.1.00 Lacs - Hypothecation of Stocks collaterally secured by registered mortgage of property equal to 200% of the loan amount in loans to Traders and 100% of the loan amount to SSI units and third party guarantee of one Person up to Rs.5.00Lacs and two Persons above Rs.5.00Lacs.

Note: Only plots of approved colonies in the shape of open land shall be accepted for mortgage purposes in all loans.

Processing Fee :
(i) upto Rs. 25000/- No charges
(ii) Above Rs.25000 upto Rs.2.00 Lakh Rs.450/-
(iii) Above Rs.2.00Lakh Rs.450/- + Rs.200.00 per Lakh or part thereof subject to maximum of Rs.30000/-
Pre-Payment : Permitted without penalty.
Linkage Shares : 2.5% of the advance made.

CHECK LIST (Cash Credit Hypothecation Limit/Working Capital Limit):

Documents to be submitted by the Applicant(s), Guarantor(s)
Sole Proprietor Concern:
1. Cash Credit Limit application form
2. Personal statement of borrower(s)
3. Personal statement of guarantor(s)
4. Two passport size photographs of borrower(s) & guarantor(s) each.
5. Financial statements of the concern for last three year (for new business as on date supported by projections)
6. Projected balance sheets for next three years in case of new concerns/enhancements.
7. Latest stock statement.
8. Registration Certificate under shops & establishment Act.
9. Income Tax Returns of Firms/Prop./Partner for last one year.
10. Rent deed of business premises, if not owned.
11. No due certificate from other banks.
12. Copy of Tan No. obtained from Sales Tax deptt.
13. Publication in local newspapers regarding mortgage of property for general public, if any objection in case of properties situated in city having no revenue records.

Partnership Concern:
In addition to above, the following documents are required:
14. Partnership deed (Registered in the court).
15. Authority to operate the account.
16. Deed if any executed regarding change/induction of new partner etc.

Private Limited Concerns:
In addition to points at S.no.1-13, the following documents are required:
17. Memorandum of Association.
18. Articles of association
19. Certificate of Incorporation
20. Resolution adopted in the meeting of Board of directors for making request for sanction of loan/limit for Rs.---- and authorization to execute documents for the purpose.

Requirements for Cash Credit Limits Collaterally Secured By Registered Mortgage of Property:
21. Title deed of property, latest Fard/Jamabandi.
22. Valuation of Property by approved valuer
23. Proof of title of vendor/seller.
24. Legal opinion from approved legal advisor of the Bank.
25. Non-encumbrance certificate.

Documents Required from SSI units:
In addition to above required documents the below noted documents are required to be obtained:
26. Detailed Project Report from ITCO or other authorized agencies, Qualified consultants.
27. Copy of provisional/permanent Registration certificate of unit with DIC/SICOP and in case of Pvt. Ltd.
concern Registration of charge with Registrar of Companies. 28. Power connected load/Water connection certificates from concerned departments.(If required)
29. NOC from pollution control board. (wherever required)
30. Detail of Plant & Machinery existing/proposed to be installed at the unit.
31. Copy of lease deed with J&K SIDCO/Industry Deptt./SICOP along with permission to mortgage .
32. Whether any arrangement made for regular supply of raw material. Furnish copies/agreement.
33. Orders in hand/expected.

In order to comply KYC norms the following documents be also obtained:
(a) Proof of age
(b) Proof of address/Pan No./Passport /Driver Licence/Telephone Bill/Electricity Bill(latest).
(c) Telephone No./Mobile No.
(d) Income Proof, if any

Documents to be obtained at the time of Disbursement of Loan
Sole Proprietor Concern/Partnership Concern:
1. CCB – 4
2. CCB – 24
3. D.P. Note (Not to be insisted)
4. CCB – 5
5. CCB – 7
6. Deed of hypothecation – Cash Credit
7. Deed of guarantee – Cash credit.
8. Letter of understanding (in case of illiterate persons and those who do not (know English language)

Private Limited Concerns:
8. Registration of Banks’ charge on securities hypothecated to the Bank with Registrar of Companies.
In addition to above following documents are required in case of limits sanctioned against regd. Mortgage of property:
(i) Mortgage deed duly registered with competent court of law.
(ii) Irrevocable power of attorney duly registered with competent court.
(iii) Mutation in revenue record of property.
(iv) In case the property having no revenue record, a notice for obtaining the same as collateral security mentioning complete details be published in local newspaper for information of public in general.

NOTE: The checklist is only suggestive and may vary as per terms of sanction as well as provisions of law and rules.