| Purpose |
Financing against hypothecation of the stock of goods & charge over the receivables of the business. |
| Financing Ratio: |
Maximum 70% of the value of the goods plus receivable amount under the hypothecation/charge. The financing ratio is to be checked/confirmed on quarterly basis by obtaining stock & receivables report and verifying by the relationship officer. |
| Nature |
Revolving & renewable. |
| Disbursement |
Limit is provided on the cash credit account and upon request/demand of the borrower, amount is disbursed on the nominee current account. |
| Principal Repayment |
Fully within expiry of the facility. |
| Interest repayment |
On quarterly basis but prior to the expiry of the facility. |
| Security: |
At least 143% coverage by the value of hypothecated goods & receivables of the business and/or 70% coverage by the mortgage collateral securities. |
| Tenure: |
Maximum one year period. |
