Hypothecation of Stock / Book Debts

Hypothecation of stock / book-debts credit facility is available as a working capital for development of business against prime security of stock or book debts. Trading / Manufacturing units, Traders, Business community can avail the credit facility.

Applicant Details :

Last three years balance sheet, copy of income tax return, copy of Partner’s personal return , Memorandum and Article of Association in case of limited company, resolution for loan application.
Tax bill of Property
Business proof of Applicant
Applicant’s Pan card / Partner’s Pan Card / Limited Company’s Pan card
3 Copies of Photograph
Bank account statement of last 2 years
Stock statement of the business
Applicant has to show all original documents to the bank for verification with zerox copy. Original documents will be returned to applicant after verification.

Guarantor Details :

Photograph ( 2 Copies )
Last tax bill
Last income tax return copy
Address proof – electric bill /telephone bill (any one)
Photo proof – Pan card / Voter card / Driving license (Any one)

Conditions :

The limit will be decided on the basis of turn over (sales) / projected sales i.e. 20% of turnover (sales) or projected sales.
Applicant has to provide collateral security covering the limit by way registered mortgage of residential premises, office, shop, godown, shed etc.
Insurance of stock and mortgage property to be taken in favour of bank by the applicant.
Original documents such as share certificate, Sale deed, Tax receipt allotment letter are required for registered mortgage of the property.
Title clearance and valuation report will be done by approved lawyer and valuer of the bank. Applicant has to pay their fees.
Applicant has to submit stock statement at the end of every month and before 10th of the next month.
The applicant has to provide two guarantors.
Limit is subject to renewal after 12 months.
Applicant has to take share @ 2 % of the limit with maximum of Rs: 20,000/-