Loans and Overdrafts against Mortgages
Features
- Nature of Facility: Drop line Overdraft.
- LTV: 50% of realizable value for fund based (FB) and non-fund based (NFB).
* Minimum loan amount: Rs 1,00,000.
* Maximum loan amount: Rs. 45,00,000 with effect from 01.03.2026.
- Margin (%): Minimum 25% cash margin for NFB facility.
- Repayment Period: 36 months.
- Processing Fee/Upfront Fee: 1% of the limits.
Target Group:
All Business Units who want to avail loan facility for manufacturing and services activities along with self-employed and professional individuals covered by MSME D Act 2006, wholesale/retail trade.
Drop line OD:
Limits can be sanctioned for periods ranging from 12 months to 180 months with either equated reduction in limit or customized reduction in limit, depending upon the cash accruals. Moratorium under the scheme should not be more than 18 months based on activity. Interest is to be serviced monthly during the moratorium period.
The drawing power shall be reduced monthly so as to have the overdraft liquidated at the end of the period.
Eligibility:
- Business Enterprises with marketable assets to offer as security.
- Takeovers from other Banks and FIs with satisfactory track record.
Collateral Security
- Immovable property in the form of Equitable / Registered Mortgage of land & building, by way of first charge.
- Industrial property both leased and freehold/land/plot cannot be taken as security; Leasehold property can be taken subject to the conditions mentioned under the head "Eligible Security".
- No 2nd Charge or Pari-Passu charge will be extended for other Bank /FI.
- Interest rate: ranges from %pa to %pa.
