Shop keeper`s Loan Scheme



Who can apply? Proprietors / Partnership whose Retail business outlet / office should be within manageable distance from any of our branch and is in existence for atleast more than 1 year 
What should be the purpose? Working Capital and / or Term Loan for purchase of Fixed Assets / Furniture & Fixtures
How much loan can be granted ? Maximum upto Rs.5.00 lakhs depending upon size of the business and assessed requirement
What will be the repayment period?
Working Capital : 12 months (annual review)
Maximum upto 60 EMIs by PDCs/ECS
What is rate of interest? 14.00% p.a. on reducing balance
13 % only against Stock.
What will be the share linkage? 1 % of loan amt sanctioned(subject to change as decided by RBI and/or by the Bank at any point of time)
Margin 25% of Stock & 40% of Book Debts<90days
what will be the securities?

Prime: Hypothecation of fully paid stocks, Assignment of Book Debts<90 days

Collateral: 50% of Limit Sanctioned ( By way of Mortgage of Property, L.I.C/ NSC certificate & any other security acceptable to bank )
What about guarantors?

Two credit worthy guarantors with sufficient assets, income etc., and Plus 1 additional guarantor from the family (Husband / Wife / Father / Mother / Major Son or Daughter) if business is run by Proprietor.

Condition of Guarantors may be waived if 200% of the loan sanctioned is covered by collateral security like Bank FD receipts, LIC Policies having sufficient surrender value, NSC’s., KVP’s, Gold Ornaments, Regd. Mortgage Deed in case of immoveable fixed assets.

Documents to be submitted by Guarantors:

  1. 2 Photographs
  2. PAN CARD ( MANDATORY)
  3. CIBIL REPORT ( MANDATORY)
  4. Duly filled and signed Consent Letter
  5. Address proof:Passport / telephone / electricity bill, Ration card / Voter identity card / Driving license, etc. (any one).
  6. Identity proof:Pan Card /Passport/Voter identity card/ Driving License / Adhar Card etc. ( any one)
  7. Copies of Profit & Loss account and Balance-sheet of last 3 years
How to apply?

Application to be made to nearest branch. Documents to be furnished at the nearest branch as under:

  1. Application in prescribed format
  2. 2 Photographs
  3. PAN CARD ( MANDATORY)
  4. CIBIL REPORT ( MANDATORY)
  5. Address proof: Passport / telephone / electricity bill, Ration card / Voter identity card / Driving license, etc. (any one).
  6. Identity proof: Pan Card /Passport/Voter identity card/ Driving License / Adhar Card etc. ( any one)
  7. Copies of Audited Balance-sheet & Profit & Loss A/c of last 3 years or as applicable depending on the year of commencing of Business
  8. Projection for next 2 years
  9. Book Debts Statement in prescribed format
  10. Stock statement in prescribed format
  11. Copy of LL agreement of shop, Affidavit
  12. Copy of shop & establishment license, drug license as applicable
  13. IT Return of last 3 years
  14. Pre sanction Visit report covering visit at place of business and residence of key persons handling business
What about insurance?; Stock & Assets to be insured with 110% of value of Prime Security with Bank clause
How disbursement will be made?
As per working capital requirement of Borrower (like Cash Credit)
For Term Loan payment direct to the paid supplier of Fixed Assets / Furniture & Fixtures by Banks Pay Order or RTGS
Processing Fees

0.50% of Loan Amount upto Rs. 2,00,000/- plus Service Tax

1% of Loan Amount above Rs. 2,00,000/- plus Service Tax

(Maximum processing fees should not exceed Rs. 25000/- excluding service tax)
Subject to change as advised from time to time.
Other Conditions

a) Place of business should display Bank’s name board at a prominent place

b) Insurance to be renewed one month in advance of the Due Date, if the renewed policy is not submitted till due date branch must renew the same by debiting party’s account advising the customer

If frequent over limit’s are noticed, non-submission of stock statements is observed, moving stocks are insufficient to cover the advance or interest is not serviced for 2 months then the account to be reviewed & immediately, to be brought to the notice of Head Office

Concession Rate 0.25% p.a. of Interest to Women borrower for Housing Loan, Education Loan, Gold Loan, Business Loan.



National Co-operative Bank