Overdraft
Overdraft is short-term financing within a year to obtain the necessary working capital to optimize your business cash flows. It is a revolving credit-based loan, and the principal is not necessarily repaid on a frequent basis but on maturity. You can also minimize your interest expenses because the interest calculation will be based on loan utilization, subject to the bank’s prescribed standard terms and conditions.
Features
| Loan repayment Period | Up to One year |
| Interest Payment | Monthly |
Eligible Borrower
- General traders
- Importers/ Exporters
- Industrial/ SME/ Corporate Units
- Construction/ Real estate contractors
- Service Providers
- Project Contractors
- Other business enterprises, where there is frequent cash inflow & outflow.
Proof of Income Evidences
- License of Business (Copy)
- Income Tax for the last 2 years and the Current year
- Financial Statement for the last 2 years and current year
For Businesses
- BOD Resolution from Borrower (If Borrower is Company)
- BOD Resolution from Guarantor (If Guarantor is Company)
- Company Registration Certificate issued by DICA, Company extract including the list of shareholders and
- Constitution of the company (As per registered in MYCO DICA.)
Required Documents
- Loan application
- KYC documents and income proof of borrower & Guarantors
- NRC (Copy)
- Census (Copy)
- Ward Recommendation (Original)
- Passport Photo (2 pecs)
- Photo of business Places, shops, warehouses Etc:
- Photo of the building (Front, Back, Sides, Inside and Floor by Floor)
- Grant Documents related to lease/ Free Hold land, Register Documents and other related documents.
- Land Map (Form 105), Land History (Form 106) at most one year.
- Legal Opinion from the lawyer about the security property.
Guarantee
| Personal Guarantee : | Personal Guarantee of significant shareholders, partners if the loan is in the name of company/firm. |
| Corporate Guarantee : | Company /firm who uses the finance ( if the facility is in the name of the shareholders, partners ) |
Type Collateral
Land and Building and Other
Fees and Charges
| Interest Rate | 9 %p.a. |
| Services Charges | 1% |
| Commitment Fee | 1% ( Charged by the bank for the unused amount less than 80% used of OD Limit.) |