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Shiksha Prasar for Institute
Period :

Demand / Term Loan : Maximum 120 months subject to review annually including gestation period not exceeding 24 months, However, loan for vehicles should not exceed 84 months (inclusive of gestation period if any).
Overdraft (Clean) : 12 months subject to review. However, the limit must be brought into credit at-least once in a year.
Bank Guarantee : As per requirement of the borrower.

Prime Security :

Demand / Term Loan : Assets created/acquired out of bank finance.
Overdraft : Fee securitization document.
Bank Guarantee : As per Bank’s norms.

Collateral Security :

Upto Rs.5.00 lac : NIL
Above Rs.5.00 lac : Equitable mortgage of property valuing at least 125% of credit facility/ies (land value to be taken as per circle rate, acquisition cost (if acquisition period is within six months) or realizable market value whichever is lower OR security in the form of unencumbered Bank’s own term deposits/NSC/KVP etc. for face value equivalent to the 75% of credit facility. In case the equitable mortgage of school/college/ institute land & building is offered as prime security and its value including the proposed construction is 125% of credit facility, the collateral security may be waived. If the effective mortgage of prime security is not feasible the other property (residential/commercial only) may be taken as collateral security after obtaining prior approval from concerned Monitoring Authority, for the proposals falling within their powers.

Personal Guarantee :

Personal guarantees of all trustees/office bearers/directors of trust/society/company. Combined worth of all the guarantors should not be less than three times of the value of advance. Wherever personal guarantee of any of the trustees/office bearers/directors of trust/society/company is not available, the guarantee of an outside person having at least equivalent worth may be obtained. Obtaining of personal guarantee can be relaxed for professionals who are in the Society/Trust/Co. without substantial financial stake, by the authority not below the rank of Vice President, subject to combined worth of the guarantors should not be less than two times of value of advance. However, personal guarantee of key managing person(s)/Office bearers/Trustee(s)/Director(s) (as the case may be) must be obtained.

Relaxation in respect of combined worth of guarantors may be given by the Chief Operating Officer/Chairman & CEO in deserving cases.

Repayment Schedule :

Installments may be fixed on monthly/quarterly basis, keeping in view the fee collection pattern/schedule. However, interest during gestation period should be regularly serviced.

Insurance :

Insurance cover should be obtained in respect of full value of assets created out of Bank’s finance and immovable properties taken as collateral security/ies.

Processing & Documentation Charges :

As applicable from time to time.

Documents :

As per Bank’s norms.