Baroda Overdraft Against Land and Building

Purpose

To provide hassle free credit to SME borrowers to meet working capital requirements/augment long term margin requirements.

All Enterprises, i.e. Micro, Small & Medium Enterprises, as defined under MSMED Act, 2006, and other entities with annual sales turnover up to Rs. 150/- crores and Real Estate/Non Real Estate projects where the project cost is Rs.50.00 Crores exclusively banking with our bank/new borrowers desirous of having sole banking arrangement with our bank.

Limit

Security

• Mortgage of factory land and building and/or any other property (Land & Building) belonging to the unit, promoters of the unit, or close relatives of the promoters, (viz. father, mother, wife, son and daughter only provided they stand as guarantors).

Note

In case of residential/commercial building, age of property should not be more than 25 years at the time of sanction).

• Personal guarantees of all Promoter Directors/owners of property.
• Third party guarantee, if available.
• Charge on unencumbered personal properties of the Promoter Directors, if available.
• Hypothecation of stocks/book debts.

Margin

40% of the market value of property mortgaged (valuation of the property will be carried out by the valuer on banks approved panel/Government approved valuer)

ROI as under or as per credit rating whichever is lower, wef 12.05.2016

Term Premium for Term Loan as per guidelines

Period

12 months.

Other Features

• Simplified assessment methods.
• Submission of stock/book debts statements on half yearly basis.
• Annual inspection of securities.
• Non-fund based facilities like LCs, Guarantees, allowed by earmarking Overdraft facility.
• Valuation of properties once in 3 years.
  Conditions apply.