A/C: .

RECOMMENDED TERMS OF SANCTION

1. Overall Limit

2. a) Term Loan
b) Cash Credit

:
:

3. Rate of Intt.

: @ .. % p.a. on monthly rest subject to change from time to time

as per Banks/RBI circulars & guidelines.

4. Margin

: On Term Loan -On Cash Credit --

5. Repayment

: Term Loan -- To be repaid by consecutive equal monthly

installments of Rs. .. from .. .
Cash Credit Repayable on Demand

6. Pre payment Charge: In case of pre-payment of Term Loan a Pre-payment charge @ 1%

of the amount paid in advance shall be levied.
7. Processing Charge : Rs /-, to be realized for processing/review & renewal /
enhancement in the Account as per latest HO circular.
8. Supervision charge: To be realized for supervision and inspection as per latest HO circular.
9. Charges for creation
of Equitable Mortgage: Rs. .. /- as per latest HO circular.
10. Charges for
Documentation : Rs. .. /- as per latest HO circular.
[Where Equitable Mortgage charges are recovered, documentation charges will
not be recovered]
11. Commitment Charges:
For Cash Credit:
Commitment charge will be levied @ 0.84 %
per annum on the un-drawn part, if average utilization during a half year is below 60% of the overall
fund based working capital limit. @0.56% p.a. on the undrawn part, if the average utilization during a
quarter is below 80% of the CC limit.
For Term Loan:
Commitment charge will be levied @ 0. 28 % per annum on the
of Term Loan remaining un-drawn vis--vis the draw down schedule for more than 90 days.

balance

11A. CIBIL Charges:

12. Penal Interest

: Penal Interest over and above the normal interest is

applicable in following cases:
Default in servicing of monthly interest.
Overdrawing/excess drawing in CC/OD account beyond the available drawing power or
sanctioned limit including ad hoc/temporary sanctions.
Non-compliance of terms of sanction.
Non-submission of audited Balance Sheet & P/L accounts within 6 months from the date of
Balance Sheet.
Non-submission of requisite data for review within one year from the date of last
sanction/review.
Non-submission of Stock/Book Debt Statements, QIS Statements within the stipulated time
period.

For each type of default as stated above, the penalty will be 1% per quarter (per default)
maximum 3% per annum.

13. SECURITIES

: Primary:

a. Equitable Mortgage of Land with factory shed & building

at Plot No:, Mouza: , PS: ..,
PO: ., Dist: .., in the name of
., for . Dec valued Rs. lac.
b. Hypothecation of Plant & Machineries valued Rs. . Lac
c. Hypothecation of all stocks in trade and receivables.
: Additional:
a. Equitable Mortgage of Land with factory shed & building
at Plot No:, Mouza: , PS: ..,
PO: ., Dist: .., in the name of
., for . Dec valued Rs. lac.
b. Lien of Banks Term Deposit valued Rs. lac
c. Assignment of LIP (SV) in the name of
valued Rs. .. lac.
d. Pledge of NSC/KVP in the name of
valued Rs. . Lac
d. Personal guarantee of Sri .. having Net Worth of
Rs. .. Lac.
e. Personal guarantee of Sri .. having Net Worth of
Rs. .. Lac.
14. Other Terms & Conditions:
(i) Release of fund is subject to execution of documents and creation of charge, mortgage,
lien, assignment, pledge etc in favour of bank including other formalities.
(ii) Entire stock in trade, building, plant, machinery, equipment, furniture etc. charged to
the bank will be fully insured against risk of fire & other perils like riot, strike, burglary,
earthquake, flood, accident, explosion, malicious damage and natural calamities for their
full value with bank clause.
(iii) Valuation & marketability report of land and building and also of Plant & Machineries are
to be obtained from two approved valuers of the bank. The valuation will be done at
every 3 years interval and a copy of the same is to be sent to this office.
(iv) Search Report and Non-encumbrance certificate of the property for twelve years
(minimum) is to be obtained from two approved Lawyers of the bank prior to release of
fund.
(v) Up to date Tax receipts and settlement parchas are to be checked and verified.
Photocopies of the same are to be kept in branch.
(vi) All transactions to be routed through the account with us only. The borrower shall not
open any account with other bank/branch without written consent of the sanctioning
authority.
(vii) The borrower is to submit stock statement including paid sundry creditors along with
list of debtors (age wise) regularly by the 10th of the following month to which it
relates failure of which attract penal interest. QIS & MSOD are to be submitted in time.
(viii) The Stock Registers are to be maintained by the borrower properly. Credit stocks are
to be recorded in the stock register separately.
(ix) I.T. Clearance/Assessment Certificate of the borrowers/guarantors are to be obtained

prior to disbursement.

(x) Inspection of the unit is to be conducted by branch officials at least in every quarter.
The unit shall have the books of records and those will be placed for banks inspection
whenever required. The bank officials will have free access to inspect the unit.
(xi) Board indicating Banks charge is to be displayed at prominent places at the office &
factory premises of the borrowers.
(xii) The unit shall have the Books and accounts audited every year and the same shall be
submitted to the bank within 6 (six) months of the close of the year to which it relates.
(xiii) Credit shall be reviewed after 12 months.
(xiv) Funds will be utilized exclusively for the purpose for which the loan is sanctioned. If
the Directors/Promoters/partners are associated with any other Firm/Unit/Company at
present or in future, it should be ensured that no fund is diverted to or used for other
units.
(xv) Bank reserves the right to cancel/suspend/reduce the aforesaid credit facilities and to
alter/amend the rate of interest, commission, margin and other terms and conditions of
sanction at its sole discretion without assigning any reason.
(xvi) Bank shall have the right to disclose your names/guarantors names and addresses to
any media/forum/platform in case no repayment is made and the loan turns NPA.

The Promoters and guarantors should furnish a declaration in the banks prescribed
format stating that in case of default in the repayment of the loan/advances or in the
repayment of interest thereon or any of the agreed installment of the loan or due
date(s), the bank and/or the RBI will have an unqualified right to disclose or publish
the name of the firm and its guarantors in such a manner and through such medium as
the bank or RBI in their absolute discretion may think fit.

(xvii) Worth of the borrowers/Guarantors as submitted along with the proposal is to be

verified and to be satisfied before disbursement of the said loan. The branch has to
draw independent opinion sheet of the Borrowers/Guarantors and the net worth
should have conformity declared by the Borrowers/Guarantors.
(xviii) Stock old over 3 months and Receivables over 180 days should ordinarily be avoided
while calculating drawing power. Stock audit will be conducted by a Chartered
Accountant. Cost of which will be borne by the firm/company once in a year.
(xix) All other terms and conditions are as per usual banks norms.
(xx) The Terms of sanction is to be accepted by the directors/promoters/proprietor of the
company/firm by signing on the copy of the sanction letter under common seal backed by Board
Resolution.
In continuation of the terms and conditions of sanction the following will be the effects of missing
installments / default in repayment of loans.
The Bank shall be entitled to charge in its discretion, additional/ penal rate(s) of interest for the
delayed period at such rate as the Bank may decide from time to time in accordance with its policy on
the outstanding dues or any portion thereof for any delay in repayments/ adjustment of the advances
and/or interest at agreed rate or on default or irregularity in observing the terms and conditions, which
in the opinion of the Bank warrants charging of such penal interest, for such period as the Bank may
deem fit.

Notice will be sent for regularization of the loan to the borrower/ employer, as the case may be,
together with intimation to the Guarantor/s. The securities held / to be held against the loan are/will be
liable for adjustment against the outstanding dues together with interest. In case of failure to pay the
Banks dues or default of repayment of loan installment(s) or interest thereon and the account
becoming non performing asset as per RBI norms the Bank will be at liberty to disclose or publish the
name(s) and address (es) along with the details of the outstanding dues payable by the defaulter
borrower/s, firm or company and also all other relevant details in newspaper and other publicity media
and also inform RBI, Enforcement Directorate, ECGC, CIBIL or any other statutory authorities as may
be deemed necessary.
In case of default Bank can issue Public Notice cautioning the Public in general not to deal
with the assets of the defaulter charged to the Bank.
The Bank will be at liberty to alter any of the above conditions / stipulations and also to introduce any
such terms after giving due notice in this regard.
The Bank shall be at liberty to recall the loan under the following circumstances.
Default in repayment of loan and/or irregular operation in the loan account in contravention of the
stipulated terms and condition of sanction. Absence of response to notice for regularization, Diversion
of loan or siphoning off of funds, for purposes other than those for which the loan has been granted,
will be treated as misutilisation of funds and shall be liable to be recalled. Notwithstanding the above,
the Bank will be at liberty to recall the loan as and when it is warranted to do so.

..
Acceptance by the Borrower(s)

Seal & Signature of Sanctioning Authority with Date

Key Fact Statement

LOAN .......... (NAME OF THE SPECIFIC LOAN PRODUCT)
1

Loan amount

Loan term

Interest type
(fixed or floating)

(a) Interest chargeable (In case

of Floating Rate Loans)
(b) Interest chargeable (In case of
Fixed Rate Loans)
Date of reset of interest

5
6

Mode of communication of changes

in interest rates

Fee payable

On application
(Pl individually specify all type of fee )

During the term of the loan

(Pl individually specify all type of fee )

On foreclosure
(Pl individually specify all type of fee )

Fee refundable if loan not

sanctioned/disbursed

Conversion charges for switching from

floating to fixed interest and vice-versa

Penalty for delayed payments

EMI payable

Details of security/collateral obtained

10

Date on which annual outstanding

balance statement will be issued

(a) ....% (BASE RATE +......... )

(b) ....%