Demand Loan
Purpose Financing on the fluctuating seasonal requirement on the current assets of the business.
Financing Ratio: Maximum 70% of net current assets (Total Current Assets- Payable & Creditors).
Nature Non-revolving & Renewable maximum up to 9 months from initial disbursement date.
Disbursement Upon request of the borrower, loan amount fully or partially is disbursed on the nominee current account after verifying the current net assets position of the business by the relationship officer.
Principal Repayment Fully within expiry of the facility.
Interest repayment On quarterly basis but prior to the expiry of the facility.
Security: At least 143% coverage by the value of hypothecated goods & charge over the receivables and/or by mortgaged collateral security with the same level of coverage.
Tenure: Maximum nine months period.