UNION LIQUI PROPERTY

Eligibility

All business enterprises engaged in manufacturing, services and trade sector will
be covered under the scheme.

Partnership concerns (Including LLP), Companies (Pvt. Ltd / Public

Ltd)/Trust/Associations engaged in business activity for minimum last 2 years.

All new as well as existing accounts can be covered under the scheme.

NBFC and Partnership firm where HUF is a partner are not eligible for advances
under this scheme. Further, enterprises engaged in speculative activities/Real
Estate activities are not eligible for finance under this scheme.
Purpose

To meet working capital requirements for business activity.

For Shoring-up of Net Working Capital

For purchase/construction / renovation of factory/ offices / shop / godown

For purchase of plant & machinery / equipment.

Financing repayment of high cost debts

Nature of Facility - Term Loan/Overdraft Facility.
Quantum of Finance - Minimum Rs.0.10crore, Maximum Rs.10.00crore
Margin on Value of Property - 50% of the fair market value of the property as per
valuation report i.e. value of property should be minimum 200% of the proposed loan
amount.
Rate of Interest As per credit rating
Security

Equitable Mortgage of residential / commercial / industrial property (Land &

Building) located at Metro / Urban / Semi Urban areas only, which are unencumbered from other bank / FI and should be enforceable under SARFAESIA.

The existing immovable property held as prime/collateral security by the Bank for a
particular credit facility can be accepted as prime/collateral security for other credit
facility. However, the value of property to be considered for the purpose of
prime/collateral security is to be restricted to the residual value of property in excess
of 200% of the outstanding of the loan facility against which the property is held as
prime security.

The property should be in the name and possession of applicant / proprietor /

partners / directors /promoter.
Property in the name of close relatives i.e. father / mother / spouse / son /
unmarried daughter of the proprietor / partner / director / promoter may also be
accepted and in that case the property owner should stand as guarantor.

Guarantee

Personal guarantee of the partners / directors

independent/professional director) to be obtained.

Personal guarantee of property owners to be obtained.

/promoters

(Other

than

Repayment Period

Term Loan to be repaid in maximum 120 months inclusive of moratorium period not
exceeding 6 months. Interest is to be paid as and when due.

Overdraft facility is for a period of one year. However, it may be further extended
subject to review/renewal of the facility by competent authority on yearly basis.