To provide finance to the contactors against the work orders issued by various government departments and government undertakings.

Secured Overdraft / Cash Credit / Cheque Purchase /Bank Guarantee.

Construction Contractors approved by/registered with the Government/Defense agencies that are in the business for a minimum of 1 year and must have successfully executed and completed 2 to 3 contracts.

Maximum of 2.00 Crore.

Primary: Assignment of Receivables and hypothecation of raw materials and consumable stores.
Note: Power of Attorney (PoA) to be registered by the contractor in favour of the Bank authorizing the contract owner to release payments due to the contractor directly through the Bank.

Collateral: Upto  5 lacs: Third party guarantee of two persons.
Above 5 Lacs and upto 10 Lacs: Third party guarantee of two persons and mortgage of immovable property having market value not less than 70% of the limit sanctioned.
Above 10 Lacs and upto  25 Lacs: Third party guarantee of two persons and mortgage of immovable property having market value not less than 90% of the limit sanctioned.
Above 25 Lacs: Third party guarantee of two persons and mortgage of immovable property having market value not less than 100% of the limit sanctioned.
Note: Third party guarantee may be waived if the market value of the mortgaged property is at least 125% of the limit sanctioned.

As per existing ‘Service Charges Schedule’ of the bank.

Upto 2 lacs: Applicable MCLR+3.00% (Floating).

Above 2 lacs and less than 15 lacs: Applicable MCLR+3.50% (Floating).
15 lacs and Above: As per internal rating.

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