Hypothecation Loan

Hypothecation Loan is provided for the purpose of growth of a firm or company. This type of loan can be considered for SSI, other manufacturing and processing industrial unit to meet their need for establishment of new unit, purchase of plant and machinery. The loan can be considered against the hypothecation of plant and machinery and finished/semi-finished goods. Society considers a loan for up to 75% of the value of plant and machinery and stock. Wherever possible, land and building owned by the applicant/borrower shall be taken as collateral security by way of mortgage.

Requirements

  • Any member of the Shree Basaveshwar Co-Operative Bank Ltd.
  • Holding either single account or joint account with other family membersí viz., father, mother, wife, son or daughter with regular source of income.
  • Individuals who may be employed/self-employed in business having regular income.
  • Permanent employee of Central/State/Defense/Police Force/Public or Joint Sector Undertaking/reputed firms/established Educational Inst/Professional/Businessmen having regular income.

Purpose of Loan

  • For purchase of new two/four wheelers, for personal or professional use.
  • For purchase of consumer durables
  • For Purchase of Machinery and Equipment

Budget of Loan

  • Need based and Repayment capacity.

Budget of Finance

  • 85% of Cost of vehicle, Consumer Durables, Machinery & Equipments etc.

Repayment Details

  • By EMI
  • The maximum repayment period should not exceed 7 years


Other Features

  • No prepayment penalty
  • Insurance facility against Personal Accident (Death)
  • Flexible repayment schedule
  • Interest on a daily reducing balance basis.

Criteria for Loan Sactioning

  • Application in Prescribed form
  • Two photographs of Borrower and Guarantors
  • Address proof of Borrower and Guarantors (copy of Ration Card, Election card, Telephone bill, Driving License etc.)
  • Income proof, Copy of Income Tax Return, Financial Statement of the Firm, Sales Tax returns etc.
  • Profile of Guarantors.
  • Loan should be guaranteed by two financially sound members (Any) having net individual worth twice the loan amount.
  • Quotation for article to be purchased.
  • Security of two guarantors and Hyphotication of article to be purchased.