The Bank extends Term Loans for capital investments being made by the clients on account of expansion of existing enterprise or for establishment of a new enterprise. Term Loans are also extended to clients for project implementation purposes, to meet non-reccuring expenditure of long term nature, etc.. The Term Loans are also considered for investments in personal segment such as housing, vehicle purchases, etc.
The aggregate outstanding quantum of Term Loans at any point of time is determined by the Asset-Liability Management Committee of the Bank in tune with the Asset Liability Matrix to avoid mis-match in the same.
The rate of interest on Term Loans depends upon the quantum of loan, its purpose, type of borrower, the gradation applicable and the nature of loan.
Adequate security for the Term Loans by way of hypothecation/ mortgage/ charge over the assets created out of the loan proceeds and such other collaterals depending upon the borrower, duration of credit, type of activity and the risk perception, as stipulated by the sanctioning authority shall be provided by the applicants. In addition, personal guarantee of promoter directors/ partners of Firm/ proprietors etc. and additional third party guarantee of a person/s of adequate networth acceptable to the bank shall be given for such loans.
The repayment of the term loans would be in periodic Instalments with initial moratorium, if needed, during the period of project implementation. The periodicity and the nature & quantum of Instalments shall be based on the time and quantum of cash generation, operating costs and the surplus available at the disposal of the borrower.