Pledge Loan
Purpose Financing on stock of the business by locking the goods (acceptable to the bank) under custody of the bank.
Financing Ratio: Maximum 90% of the value of the goods under the pledge.
Nature (i) Revolving & renewable
(ii) Non-revolving & non-renewable.
Disbursement Limit is provided on the loan account and upon request of the borrower after pledge of the goods, loan is disbursed on the nominee account.
Principal Repayment At the time of releasing goods from locked custody within expiry of the facility.
Interest repayment On quarterly basis but prior to the expiry of the facility.
Security: At least 111% coverage by the value of pledged goods.
Tenure: Maximum one year period.