Urban Paribahan Surakshya

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Urban Paribahan Surakshya

1.  Objective & purpose : Under the scheme the bank envisages the unique idea of extending working capital facilities to the truck/bus owners and small road transport operators. The scheme aims at meeting the following needs of the transport loanee/transport operators.

  • To meet day to day lubricant and oil expense
  • To meet the minor repairing expenditure of the vehicle
  • To meet the contingent expenses on road
  • To meet the expenses of road tax and insurance of the vehicle

Eligibility : Existing transport loanee between the age group of 21 to 65 and small road transport operator having regular transaction with our bank, permanently residing or gainfully employed in the area of operation of the bank can avail of this facilities. Besides the existing transport loanee, the prospective transport applicant can avail this facilities as composite loan.
3.   Quantum of loan : The amount of loan shall be up to Rs.50,000/- for individual vehicles. The amount of loan shall be calculated taking the average expenses incurred during a week. The expenses may include fuel lubricant on the road expenses and minor repairing expenses. The permissible bank finance shall be derived at one week expenses of the vehicle subject to maximum Rs.50.000/- keeping margin of 20%.

4.   Rate of interest : The bank shall charge interest @ 13% with monthly rest. The rate of interest may change as per the guideline of the R.B.I. and decision of the management from time to time.

5.   Processing fees : A non refundable processing charges of 0.5% of the applied amount shall be deposited by the prospective borrower at the time of submitting the loan application.

6.   Mode of operation : The account shall be operated like a cash credit limit. The prospective borrower shall deposit the income of the vehicle i.e. rent, regularly in the account. He/They are also allowed withdrawals from the account for the business purpose. The prospective borrower shall give sufficient credit entry in the account so as to meet the monthly interest charged.

7.   Security :

  • The loan amount shall be covered by 100% security.
  • For the existing loanee the surplus securities available in the existing loan shall be taken into consideration and in case the surplus security is not adequate to cover up 100% security, the borrower shall give adequate security as required.
  • In case of fresh composite proposal the borrower shall furnish securities for the entire loan.

8. Personal sureties : The applicant shall have to give two personal sureties, permanently residing within the area of operation of the bank, having net worth at least equal to the loan amount. The sureties are jointly and severally liable for the limit sanctioned in favor of the borrower

9.   Rate of interest : The bank shall charge interest @ 13% with monthly rest. The rate of interest may change as per the guideline of the R.B.I. and decision of the management from time to time.