Eligibility Criteria

1) Purpose

(1)   For furnishing of Show Rooms

(2)   For working Capital requirements

2) Eligible Customers

Existing good clients of KFC (Hotels, Hospitals & SSI Only) whose loan accounts fall in Standard Category.

3) Limit:

Eligible amount is limited to 30% of sanction (except RFL. STL. WCTL etc) subject to maximum of Rs.50 lakhs. Loan A/c closed during one year can also be considered subject to availability of primary security against which loan was sanctioned. Present principal outstanding plus the proposed limit shall not exceed the original loan. Over all exposure of the Corporation in this scheme should be limited to 10% of total sanction.Loans under special schemes(RFL,STS,WCTC etc) are not reckoned for eligibility.

4) Nature of Operation

The customer can draw as per his requirement (not less than Rs.1 lakh) subject to sanction limit under this scheme. This will be a running account where disbursements and repayments will be done in one account. The account should be prompt in respect of payment of interest for qualifying to draw the next disbursement. The limit should be renewed on expiry of 12 months. In case of default, the facility will be cancelled & recovery steps will be initiated. Interest will be debited monthly and will have to be repaid monthly.

5) Utilisation

The loan shall be utilised for marketing of SSI products and services.

6) Collateral Security:

Existing security/ collateral security shall continue without any additional collateral security. Specific charge on the existing assets/proposed assets shall be created in favour of the Corporation. The availability of securities for the loans which was closed during the preceding 1 year and considered for eligibility under this scheme shall be ensured and taken as security for the loan.