FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Punjab & Maharashtra Co-operative Bank Ltd. – Cash Credit against Stocks and Book Debts
The Punjab & Maharashtra Co-operative Bank Ltd. (PMC bank) started its operations first time on 13th February, 1984. The bank was established with an aim to provide banking services that provides the customer utmost ease and convenience. Within a short span of just 16 years, it has achieved ‘scheduled’ status on 29/01/2000 and is the youngest co-operative bank to achieve the status.
Purpose: For financing the needs of working capital for business this loan can be availed.
Eligibility: Industrialists, small entrepreneurs, traders, professionals and self employed persons can avail this loan for fulfilling their working capital needs.
Quantum of Loan: The maximum amount of the loan depends on the business turnover and also per party limit fixed by the Bank from time to time.
Margin: There is a margin of 25% against stock and book debts.
Rate of Interest: The rate of interest is 13.50 % per annum.
Repayment: The loan is repayable on demand. The personal loan is subject to annual review.
Security: Hypothecation of stock and book debts is taken as security. Collateral securities of tangibles may be needed in some cases.
Guarantee: Two solvent third parties are required as guarantee.