Industry Purpose Loan

This Loan may be advanced for Rural Artisan, Cottage    Industries, Small Scale Industries and Medium Industries. Loan may be advanced as a Term Loan for Block Capital Investment and also for Working Capital Loans.

The Block Capital Loan shall be advanced for Investment / for acquiring assets like Building, Plant and Machinery, Equipments, Tools and Machinery, Delivery Vehicles, Electrical Installation etc. further a part of preliminary expenses which forms a part of Working Capital as operating expenses can also be considered and included in Block Capital.

Working Capital requirement shall be assessed separately based on the requirement of the Industry depending upon the production capacity, marketability, margin etc. based on the project report.

An Individual, a Partnership Firm, a Company Registered under Companies Act, a Corporate Bodies, a Society Registered under Society Registration Act - 1960 who shall be necessarily Associate Member of the Bank. Having Current Account with the Bank are eligible for applying to Loan.

Maximum Loan Limit generally shall not exceed Rs. 60-00 Lakhs as per the exposure limit presently available as per the NABARD norms. However with this meagre limit it may not be possible even to set up a Small Industrial Unit. Hence it is desirable that maximum limit shall be fixed at Rs. 500-00 Lakhs per unit in case of Block Capital and Rs.500-00 Lakhs for Working Capital and Bank may seek relaxation for higher exposure limit from NABARD in individual cases.

*Rules are subject to change from time to time. For further details please contact nearest branch.

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