Overview about Kapol Bank Term Loan, Overdraft (OD) against Shares / Debentures / PSU Bond
With a staff of over 300 people across 15 fully computerized and interconnected branches, the Kapol Cooperative Bank has come a long way from its humble beginnings in 1939. It now serves over two and a half lakh customers, and is one of the first banks in its category to have incorporated NEFT / RTGS facilities in addition to being a pioneer in uplifting the economically weaker sections of the society.
The bank offers its customers the facility of taking out a loan or overdraft against their existing shares, debentures and PSU bonds.
Purpose of Kapol Bank Term Loan, Overdraft (OD) against Shares / Debentures / PSU Bond
The Kapol Bank loan, or overdraft against shares, debentures, and PSU bonds is designed for the purpose of investments in shares and debentures. It involves the hypothecation of stock and / or book debts for cash credit.
Eligibility criteria of Kapol Bank Term Loan, Overdraft (OD) against Shares / Debentures / PSU Bond
The loan facility is extended to professionals, entrepreneurs, and self-employed businessmen who have a good credit standing and have no history of defaulting on loans.
Features and benefits of Kapol Bank Term Loan, Overdraft (OD) against Shares / Debentures / PSU Bond
For loans or overdrafts against shares / debentures / PSU Bonds
Maximum amount is Rs.5,00,000 for physical shares
Maximum amount is Rs.10,00,000 for demated shares.
Interest rate is 13.50% p.a.
The maximum repayment period is set at 24 months.
EMI for Rs.1,00,000 is Rs.4,778 per month.
Margin is 50% on the market value of demated shares that are acceptable to the bank.
For cash credit against the hypothecation of stock and / or book debts and bill discounting
Maximum amount is Rs.750 lakhs.
Interest rate is 14.00% up to Rs.5,00,000.
Interest rate is 15.00% above Rs.5,00,000.
The maximum repayment period is subject to an annual review.
40% of the cost or market price, whichever is lower.
50% of the book debts under 90 days.
Bills drawn on reputed companies with a tenure less than 90 days.
Documents required for Kapol Bank Term Loan, Overdraft (OD) against Shares / Debentures / PSU Bond
Identity Proof: A proof of identity issued by a competent and legitimate government authority. Could be driving license, passport, Aadhaar card, PAN card, etc.
Address Proof: A proof of identity issued by a competent and legitimate government authority, or any proof of address that contains the borrower’s name. Could be driving license, passport, telephone / electricity bill (attested), etc.
Income Proof: A document confirming the earning of the borrower. Could be bank account statements, etc.
Stock certificates, share certificates, debenture certificates, and PSU bond certificates.
The list of other necessary documents will be made available to the applicant at the time of applying for the loan.