Purpose |
Financing for executing the contractual job |
Financing Ratio: |
Maximum 20% of the contract value. |
Nature |
Non-revolving but renewable up to contract period. |
Disbursement |
Upon request of the borrower for the payment of materials, goods, wages or any expenses required as per nature of the contractual job. |
Principal Repayment |
By 5% addition on the financing ratio from each realized contract bill or within expiry of the contract loan. |
Interest Repayment: |
On quarterly basis but prior to the expiry of the loan. |
Security: |
Normally 40% to 100% coverage by the value of mortgaged collateral security depending upon status of the contractor & nature of the contractual job. |
Tenure: |
Maximum up to contract period. |