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For expansion, acquisition or for setting up a new business, Saraswat Bank is happy to help its customers for every sort of financial need. For our existing and prospective customers, Corporate Loans can be sanctioned for all purposes. This scheme of Corporate Loan will help meet financial requirements of Private Limited or Public Limited companies without involving an acquisition of fixed assets. 

Corporate Loans can be sanctioned to a corporate customer for commercial purpose in line with the regular business activity, viz:

  1. Shoring up the net working capital (NWC)
  2. Ongoing capital expenditure such as replacement of machines, up gradation, renovation, etc.
  3. Replacement of high-cost debts
  4. Research and development expenditures
  5. Acquisition of tools and jigs etc
  6. Implementing voluntary retirement scheme in the company
  7. Acquisition of trademarks/patents/brand equity (in exceptional cases only)

Repayment Period:

Maximum time period of seven years is allotted.

Processing Fee:

As applicable to term loan for existing / prospective borrowers. 

Security:

  1. Exclusive first charge on the fixed assets or on pari passu basis with other Term lenders.
  2. Where the sole purpose is to shore up NWC, extention of charge on current assets should be obtained.



Margin:

30%

Collateral Security:

Personal guarantee of promoter directors, pledge of equity shares of promoters (upto an amount of Rs. 20.00 Lakh), charge on unencumbered assets of the corporate, independent tangible security of promoter director/s etc. 

Documents:

  1. As applicable to Term Loans in consultation with Legal Department/Legal advisers
  2. Charge to be registered with ROC as usual

Shareholdings:

2.5% of the loan amount, maximum upto Rs.25,000.