Amco Trade Finance Scheme
» Amco Trade Finance Scheme
This scheme is applicable to Retailers/ wholesale dealers & Trading Houses as per below guidelines.
Purpose of finance
- Against stocks & Book debts up to 90 days and for purchase of business property and not for Industrial units.
- Individuals/ Partnership firm / Pvt. Ltd/ Ltd company. Either Promoters/Co applicant should have minimum Six months banking with our bank.
- Traders have to obtain registration with Gujarat Commercial tax/ Shop & establishment Act/Excise Department etc.
- Eligible to only fresh cases of advances.
Type of Loan
- Working Capital/Term Loan (Fund Based & Non fund based).
Amount of Loan
- 30% Against Stock, 40% Against Book Debts,
- 40% Against immovable property.
- Prime Security: Hypo of stocks, Sundry Debtors, immovable property financed by the Bank under this scheme.
- Collateral security: Registered equitable mortgage over Immovable property having value more than 100% of loan amount or liquid securities whose realizable /surrender value equivalent to the loan amount.
Rate of Interest
- For Working Capital: 12% P.A. (Minimum utilization up to 60% and In other cases 13.50% P.A.
- For Term Loan : 12.50 % P.A.
Period of Loan
- For working Capital: Validity for 1 year and thereafter every year renewal.
- For Term Loan: Maximum 7 Years (Including of Moratorium period of 6 months).
- Applicable as per existing norms.