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Traders Loan

traders get loan to help your business grow
Traders Loan - traders get loan to help your business grow

Learn more about our Loan for Traders Scheme under TMB Business Loan Products.

Our traders loan scheme is suitable for all the general business community that need funding for the working capital and other business related funding necessities. This scheme is attractive and offers loan upto Rs. 20 Lakhs with interest on diminishing balance.

 

Purpose

To meet the working capital and other financial requirements of any nature related to the business of traders.

Eligibility

Any Individual, Proprietary concern or a Partnership firm engaged in trading of any commodity subject to the applicant not enjoying any working capital limit with our bank / or from other Bankers after availment of this scheme. However if one of the partners is having proprietary concern, we can entertain the proprietary concern even though the partnership firm enjoying Working Capital limit with our bank / or from other bank.

Form of Advance

WCTL / WCDL / Term Loan / Demand Loan / Overdraft (WC) with monthly reducing balance method.

Loan Quantum

Up to Rs. 20 Lakhs.

Obtention of Financial Statements

Not compulsory. If the Financial statements are available, a copy of the same should be obtained & verified. If the Financial statement is not available, repayment of the Principle and interest should be assessed by enquiring the other income particulars available.

Repayment

The repayment of TL / DL / WCTL / WCDL / OD (WC) shall be fixed on the basis of income generation of the borrower (individual / concern / firm) and the repayment period shall be restricted to a maximum of 60 monthly instalments.

Security

  • Primary: Hypothecation of Stock / Book Debts / Equipments / Machineries & Fitting & Furniture etc.
  • Collateral: (Agricultural) Land should not be taken as collateral security. a) If collateral located at Metro / Urban / Semi Urban Areas: Land / House Plot / Building properties not less than 150% of the limit. b) If collateral located at Rural Areas: Land (except Agricultural) / House site / House Building Properties in the prime area value not less than 200% of the limit.

Insurance

Comprehensive insurance has to be made on all the assets hypothecated to the bank. Machineries and Collateral Security like Building should also be insured.

Rate of Interest (Irrespective of Loan Amount)

  • PLR - 1.25% (12.75% p.a.) if repayment period is upto 36 months.
  • PLR - 0.75% (13.25% p.a.) if repayment period is above 36 months.
  • Additional concession of 0.50% may be granted if covered by collateral security of urban property of 200% & above OR rural property of 250% & above.
  • Current Prime Lending Rate (PLR) is 14.00% p.a.

Margin

  • WCTL / WCDL / OD (WC) - Nil
  • TL / DL - 20%

Penal Interest

Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.

Processing Charges

  • Term Loan: 1.00% of Limit sanctioned without any maximum cap.
  • Working Capital [Fund and Non-Fund Based]: 0.50% of the loan amount without maximum cap.

Requisites

  • Application from the applicant in Form # 139 (Application for Financial Assistance to Retail Traders, Small Traders & Small Business).
  • Details of collateral security offered.
  • Suitable personal guarantee of third party.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.