Contract Loan
Purpose Financing for executing the contractual job
Financing Ratio: Maximum 20% of the contract value.
Nature Non-revolving but renewable up to contract period.
Disbursement Upon request of the borrower for the payment of materials, goods, wages or any expenses required as per nature of the contractual job.
Principal Repayment By 5% addition on the financing ratio from each realized contract bill or within expiry of the contract loan.
Interest Repayment: On quarterly basis but prior to the expiry of the loan.
Security: Normally 40% to 100% coverage by the value of mortgaged collateral security depending upon status of the contractor & nature of the contractual job.
Tenure: Maximum up to contract period.