Facility to be extended by way of:

i) Running Account in the form of Secured Overdraft / Cash Credit Facility
ii) Cheque Purchase Facility
iii) Bank Guarantee Facility.

Construction Contractors approved by / registered with the Government / Defence agencies that are established / experienced in the business for a minimum period of 1 year and must have successfully executed and completed 2 to 3 contracts.

Construction Contractors approved by / registered with the Government / Defence agencies that are established / experienced in the business for a minimum period of 1 year and must have successfully executed and completed 2 to 3 contracts.

Maximum Limit under this product shall be 2.00 Crore. For limits exceeding 2.00 Crore, assessment shall be carried out as per the norms / guidelines laid down in the Bank's credit policy.

Primary: Assignment of Receivables and hypothecation of raw materials and consumable stores.

Note: Power of Attorney (PoA) to be registered by the contractor in favour of the Bank authorizing the contract owner to release payments due to the contractor directly through the Bank. The PoA to be got acknowledged and accepted by the contract owner.



Collateral:

Limit
Nature of Security
Upto 5 lacs Third party guarantee of TWO persons of sufficient means
Above 5 Lacs and upto  10 Lacs Third party guarantee of TWO persons and mortgage of immovable property having market value not less than 70% of the limit sanctioned

Above  10 Lacs and upto  25 Lacs Third party guarantee of TWO persons of sufficient means and mortgage of immovable property having market value not less than 90% of the limit sanctioned
Above  25 Lacs Third party guarantee of TWO persons of sufficient means and mortgage of immovable property having market value not less than 100% of the limit sanctioned
Note: Third party guarantee may be waived if the market value of the mortgaged property is at least 125% of the limit sanctioned.

As prescribed for working capital facilities in the “Service Charges Schedule.”