Purpose

To extend credit to Eating-Joints viz.Restaurants, Bakeries, Institutional Canteens Sweet shops Meat shops Ice-cream Parlours etc.

Nature of credit

Working capital Term loan

Quantum of credit

Equivalent to 4 months sale (average of 12 months) .In case of new entrepreneurs, on the basis of projections .The maximum extent of credit would be Rs.5 lacs for individual borrowers and Rs.10 lacs for partnership firms/Cos.

Margin

15-25 %

Rate of Interest

For loan upto Rs.2 lacs - PLRF or loan above Rs.2 lacs - PLR+1%

Guarantor

Guarantee of an independent person of good integrity and sound means acceptable to Bank.

Security

Collaterals valuing atleast 150% of credit limit where property is to be taken as security and 100% in case of NSCs/Life insurance policies Govt. Securities etc.

Repayment

60-72 EMIs .Daily cash collection to be deposited with the Bank

Misc.

The Entrepreneurs should obtain license from Health Deptt. and registration under Shop Establishment Act wherever applicable