| Sr.no. |
|
Description |
| 1 |
Eligibility |
- The private educational institutions incorporated as Society/Trust, should be in existence for minimum 5 years and at least 2 batches of students should have passed out from the institute affiliated to different Educational Boards/Universities recognized by Government / UGC/any Statutory Body like AICTE/IMC etc.
- Loan is allowed against mortgage of immovable property with Institute building located in Metro / Urban / Semi-urban centers.
- Institute should not be engaged in Real Estate/Speculative/Capital Market activity.
- The Educational Institution should open their operating a/cs, salary accounts of faculty/staff and to the extent possible students' accounts with our Branch.
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| 2 |
Purpose |
To meet any sort of operational expenses, but not for any speculative purpose / Real Estate activity / Capital Market activity. |
| 3 |
Nature of Facility |
- Term Loan and Overdraft
- The Overdraft facility will be for one year and to be reviewed annually.
|
| 4 |
Loan Amount |
Amt of loan: Minimum Rs.1lakh., Maximum Rs. 500 lakh depending on average annual cash accrual (PAT+Depreciation), other liabilities, property value etc. |
| 5 |
Security |
- EM of non-encumbered Land with Building in the name and possession of the Institute, located in Metro/Urban/Semi-urban centres.
- The value of security should be minimum 200% of the loan amount.
- The property should not be meant for real estate activity.
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| 6 |
Insurance |
The property will be insured against all appropriate hazards with bank's clause for full value of the property. |
| 7 |
Guarantee |
Personal Guarantee of Trustees (Trust)/ Principal Society Members like Chairman, Secretary, Treasurer (Society) to be taken. |
| 8 |
Interest Rate
|
- MCLR+3.50 %
- In case of any default in payment of interest/EMI, Penal Interest to be charged @ 2 % over sanctioned interest rate for the overdue amount and overdue period.
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| 9 |
Processing Fee |
- Term Loan: 0.50 % of loan amount, maximum Rs.20,000/-
- Overdraft: 0.50 % of loan amount, maximum Rs.10,000/-, renewal charges to be levied @ 0.50%, maximum Rs.2000/- per renewal.
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| 10 |
Prepayment Charges |
- Nil, in case prepaid from borrower's own sources.
- If the loan a/c is taken over by other Bank/FI, prepayment charges to be levied @ 1% of loan outstanding as on the date of such take over.
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| 11 |
Repayment |
- Loan is to be repaid in Maximum 120 equated monthly installments (EMIs), commencing from next month of disbursement.
- Repayment of EMIs through ECS mandate/ Post dated cheques.
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| 12 |
Take over |
- Take over is allowed.
- On take over, the Institute should deal exclusively with our Bank and operating accounts of the Institute should be maintained with the Bank's Branch.
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