Loans to Builders, Contractors (Project Loan)
Eligibility
a) Loan shall be granted to individual & partnership ,private limited firm
b) Applicant must satisfy KYC Norms.
c) Applicant should not be a defaulter of any bank.
d) Minimum CIBIL rating shall be 700 (Credit Vision & Personal Loan Score)
Scope
all builders & contractors
Nature of Facility
Term Loan,over draft against property
Purpose of the Scheme
for residential,commercial project
Maximum limit
as per banks exposure
Margin
Term Loan: 30 % of Quotations/Estimates
Security/ies
Prime Security for Term Loan: Fixed Assets Built up from the Loan Funds
Collateral Security-Distress Value-Minimum 100% of Loan Amount as acceptable to the Bank
Total project with land
Repayment Period & Terms
For Term Loan- Maximum 48 Months ( including Moratorium Period, not more than 18 months) (Subject to Yearly review) as per the period of rera certificate whichever is higher
Rate of Interest (% p.a.)
a) Loan amount upto Rs.100.00 Lakh: 13.00% p.a & 1.00 % Rebate on Regular Repayment
b) Loan amount above Rs.100.00 Lakh 13.00% p.a. & 2.00 % Rebate on Regular Repayment
Note: Bank reserves its right to revise the rate of interest as per its Board’s Policy/RBI Policy from time to time.
Nature of Charge on Security/ies
Hypothecation Charge/ Pledge/Registered Mortgage/Equitable Mortgage/Lien/Assignment (depending on the security)
Visit
Visit to be done on a quarterly basis.
Guarantors
Two Creditworthy guarantors acceptable to the bank.
Share Linkage
Linking Shares of 2.50% of Total Loan amount should be subscribed by the borrower.
Penal Charges
2% over & above the normal rate of interest on overdue portion.
Disbursement
For Term Loan- Direct Payment to Vendors/Reimbursement to account on production of money receipts of evidence of payment.
Processing Fee [on loan amount]
For Fresh Loan- @ 1.50% of Sanctioned amount + GST
For a review of term loans: 0.50% of outstanding amount as of the date of review+GST
Other Conditions
This Scheme will be governed as per our Credit Policy & applicant has to
Last 3 years Final / Audited financial statements [Profit & Loss A/c, Balance sheet with all Schedules/annexure. (for existing activity). (if applicable)
Last 3 years Income Tax Returns along with Computation of applicant borrower & guarantor Individual / Proprietor /Trust & Trustees / Partnership firm & its Partners / Company & its Directors / Karta of HUF etc., as the case may be.
Tentative financial statement if Tax Audit date is not completed, this exception is only for current year.
Reason for increase/decrease in sales/profit/loss, erosion of capital.
Details of various sites developed to be developed by the applicant borrower.
Development Agreement, Approved plan, Approved layout, Commencement, NA order etc. from the competent authority.
Undertaking from the builder on requisite stamp paper that he has /they have obtained necessary permission/Approval/Sanction for construction of the said building from all the concerned competent authorities & construction is in accordance with the approved plan & is having free & Marketable title.
Undertaking from builder on requisite stamped paper for formation of housing society or not.
Undertaking from the builder that he has availed/ has not availed loan from the bank for construction of this site & he hereby undertakes to give NOC from the concern bank as a proof of discharging/releasing its
Present Status of the project i.e. Funds Raised & Deployed [Item wise] duly certified by CA], along with architect certificate showing the progress of the project site.
Cash Flow, Fund Flow Statements by monthly or quarterly basis.
Period require for complete Construction work.
Quarterly Progress Report
to be fixed date of commencement of commercial operations (DCCO)
Rera registration required
If the scheme is in joint venture then a registered sharing patent is required
(development aggreement )
Subject to all legal process
Subject to all financial process
