Advance against Godown / Warehouse receipts

We provide the working capital requirements based on current and future expansion plans against the Pledge of Stock as well. We help you to meet your everyday operational fund requirements and immediate business obligations.

Funds are provided based on the underlying operational efficiency of the company/firm/unit and integrity.

Key Points

  • Interest is to be paid only on the outstanding balance.
  • Low rate of Interest.
  • Other conditions in line with working capital finance points.
  • This facility is subjected to renewal / revival once in Two years.
  • A borrower will be granted advances only against goods in which he normally deals.
  • Turnover of goods is a significant indicator to judge the marketability of goods.
  • The goods will be valued based on purchase or market price whichever is less.
  • Obsolete goods are not at all accepted for pledge.
  • In course of operation of the account, if any goods became stale/obsolete, the same be immediately changed with marketable goods, or the D.P (drawing power) shall be reduced to the extent of such pledged goods.
  • A sign board indicating goods pledged in favour of the bank will be displayed on the godown.
  • Keys are to be kept with the bank.
  • At the time of lodgement of goods, the original invoices covering the goods will be verified.
  • Possession of pledged goods will be parted with only against proportionate repayment of debt.


Security

The cash credit pledge advances shall be granted by the bank against following securities:
  • Against the personal sureties of two/three guarantors acceptable to the bank.

Documentation

  • Brief history and profile of Company and its promoters.
  • Bank Statements for last 12 months of all existing loan including Cash Credit if any.
  • Any other documents as required by the bank at a later stage.
For loan terms and conditions, eligibility criteria, interest rate, loan term, security, EMI amount etc. wherever required In detail can be enquired with the nearest branch.