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Corp IPO Scheme
1. Eligibility :
| v | Individuals such as salaried persons, Professionals, Businessmen, Pensioners, etc, either individually in their own name or jointly with others with sufficient income to service the loan. |
2. Purpose
| v | To provide finance to the general public to subscribe to IPO/Public issue/ Rights/ ESOP of reputed corporate/ corporate approved by the Bank from time to time. Employees of such corporates are also eligible to subscribe to the issue of their own companies. |
3. Nature of facility
Loan in the form of Demand Loan
4. Quantum of Loan
| v | Minimum Rs. 0.20 lakh & maximum Rs. 10 lakh |
Declaration indicating aggregate loans against shares availed by him either individually or jointly from banks/financial institutions does not exceed Rs. 10 lakh, necessary
5. Margin
50% of the value of shares subscribed (issue price + price)
6. Rate of Interest
12.75 % p.a. under floating rate (w.e.f: 02.08.2010)
(Fixed rate option not available)
7. Security
Pledge of shares allotted.
8. Guarantee
Suitable third party guarantee
9. Repayment
a) In case of refund of application money, loan to be closed immediately.
b) In case of allotment of shares, loan is repayable in 36 months in EMI.
| v | EMI/Notional interest as a % to net income is applicable as per guidelines. |
10. Processing Charges
0.50% of loan amount subject to Minimum Rs. 500/- (Charges are inclusive of service tax) .
11. Prepayment Charges : NIL
12. Other Conditions : Loan sanctioned by branches identified by the Head Office.
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