Hypothecation of construction equipment to be purchased
a. Upto 25.00 lakhs
To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed or against 3rd party guarantee of 2 persons of sound means based on the option exercised by the borrower. b. Above 25.00 lakhs
Mortgage of immovable property of value equal to or at least 50% of the loan amount.
The equipment financed shall be insured with comprehensive insurance cover and usual bank clause at the costs and expenses of the borrower. The insurance policy shall be renewed at yearly intervals till final adjustment of the loan.