Primary: Hypothecation of construction equipment to be purchased.
Collateral: Upto 25.00 lakhs; To be covered under guarantee cover of CGTMSE or against third party guarantee of two persons of sound means based on the option exercised by the borrower.
Above 25.00 lakhs; Mortgage of immovable property of value equal to or at least 50% of the loan amount.
The equipment financed shall be insured with comprehensive insurance cover and usual bank clause at the costs and expenses of the borrower. The insurance policy shall be renewed at yearly intervals till final adjustment of the loan.