Business Loan
Loan for starting Cyber Cafe/ PCO/ Xerox Machine/ FAX Machine/
Flour Mill/ Mini Rice Mill/ Pulses Mill/ Oil Mill
Purpose and Eligibility:
- The main objective of the scheme is to provide employment to beneficiaries.
- Beneficiary should be a graduate and reside in rural or town area.
- The residence of the beneficiary and debt driven economic activity/ business/ shop/ should be in the working area of the related bank branch.
Loan Margin Amount and Interest Rate:
- For Cyber Cafe beneficiary will get a maximum extent possible loan of the estimated unit cost of a unit.
- The beneficiary will have to contribute 20% of the project cost and the rest 80% the Bank will provide as loan.
Interest Rate:
- The interest rate on the sanctioned loan will be 11% annually. The interest will be calculated on monthly basis.
- On non-payment of loans a penal interest of 2% will be payable annually, on the payable outstanding amount for the payable outstanding period.
Term of Loan:
- Beneficiary will have to repay the loans in 5 years in the form of consolidated monthly installments.
- In 5 years of loan repayment, 2 months will be considered grace period and payment will be collected in the form of 58 consolidated monthly installments.
Security:
- Upto a credit limit of Rs 25,000.00/- no collateral security is needed but the beneficiary will have to present two proper individuals as guaranters which should be acceptable by the bank.
- For credit limit of more than Rs 25,000.00/- a collateral security of one and a half times of loan amount is needed and two people as a guaranter. Only those property on which clear title and easily accessible on sale will be acceppted as collateral security.
Insurance:
- Beneficiary will have to credit/ limit covering all risks under bankers clause, would be to insure collateral security, the expenses will be borne by the debtor.
** For more information please visit your nearest branch of Zila Sahkari Bank Ltd. Kanpur
