|
COMMERCIAL CASH CREDIT AGAINST JEWELLERY
The “Commercial Cash Credit against Jewellery” from Indian Overseas Bank is a package designed for assisting commercial activities in the country. Business needs for running a commercial activity can be met by availing finance under this product in the form of cash credit or over draft with cheque book facility, against the value of jewels for investment in commercial activities.
Eligibility: Individuals who own jewels, engaged in business activities like small business/trade/professional and self-employed etc.
Amount of loan: Minimum finance under the scheme will be Rs.50,000/- and the maximum will be Rs. 10 lacs. The limit should not exceed the advance value at any point of time.
For limits up to Rs.3 lakhs, the quantum of finance will be the advance value multiplied by the net weight of the jewels or Rs.3 lakhs whichever is lower.
For limits exceeding Rs. 3 lakhs, quantum of finance will be the Advance value multiplied by the net weight of the jewels or 20% of the projected turn over whichever is lower, subject to a maximum of Rs. 10 lakh.
Rate of Interest: Interest will be a) For loans up to Rs. 3 lacs 12% b) For loans above 3 lacs - 12.50% (fixed) for Cash Credit/overdraft (subject to change).
Margin: No margin.
Security: Fully secured by pledge of gold jewellery with fineness of 20 ct to 22 ct.
Repayment: Cash Credit is to be renewed / reviewed every year.
Documents required:
- For limits up to Rs. 3 lakhs
Proof of commercial activity like license/registration with DIC/ Sales Tax registration certificate etc.
An undertaking letter indicating the business activity and assuring that the funds will not be used for speculative purposes.
-
For limits above Rs. 3 lakhs
Unaudited balance sheet
An undertaking letter indicating the business activity and assuring that the funds will not be used for speculative purposes.
Jewels will be appraised by another appraiser, preferably panel appraiser from the nearby branch.
Processing charges: Rs. 202 (Rs.180+ Service Tax of Rs.22/-) per lakh with a maximum of Rs.2020 to be paid at the time of sanction. Appraiser commission subject to a maximum of Rs.300/- per limit.
|