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Naini Nirman Financing To Contractors
Prime Security :

Cash Credit (H) : Hypo. of Stock of raw material and of receivables/Hypothecation of Book Debts/Payments bills.
Loan : Hypo. of Machinery & Equipment/vehicles/E.M. of property etc.( including registration of Bank’s charge on the vehicle with RTA in case of finance for purchase of vehicle/s)
Bank Guarantee : Counter Indemnity

Margin :

Cash Credit (H) : Up-to Rs.100.00lacs – 10.00% min.
Above Rs.100.00lacs- 15.00% min.
(D.P. to be calculated on paid stocks and receivables/supply bills up-to 120 days only).
For Loan : Min. 25% of cost of fixed assets/vehicles/Plant & Mach./furn. fix etc.
For Bank Guarantee : Min. 25% in the form of our Bank’s deposit.

Period :

Cash Credit (H) : 12 months subject to review
Loan : Up to Maximum of 7 years but not exceeding effective life of Machinery & Equipment with gestation period of max. 6months. However interest during gestation period should be regularly serviced.
Bank Guarantee : 12 months or as per request of beneficiary

Rate Of Interest :

Base rate + 4.00 % with monthly rests.

Collateral Security :

Mortgage of non-encumbered/freehold residential/ commercial/industrial property (agricultural land is not acceptable) under the name and possession of the owner. In case the property stands in the name of third party, his/her personal guarantee is to be obtained. If the property is under possession of a reputed company/multinational company/Institution /Govt. Organization as tenant under specific rent/lease agreement, the same may be accepted as security. The aggregate amount of total credit facilities should not exceed 75% of the fair marketable value of property offered as collateral security.

Value of land to be taken lowest of

  • value as per circle rate,
  • cost of acquisition (if the acquisition period is not more than 6 months)
  • realizable value of the property .
Others :

Proposals of Contractors engaged in construction activities in private sector may not be considered beyond Rs.50.00lacs by the Branches without obtaining prior permission/clearance from their reporting A.G.M. by submitting detailed information ( to be taken up on selective basis only).


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