Varthaga Mitra

If you are a trader and require finances for your working capital requirements, the Varthaga Mitra Scheme is a perfect solution. It helps you deal with day-to-day expenses and allow you to carry on your business activities smoothly.

Features and Benefits
  • A secured overdraft loan / short-term loan or combination of Overdraft and STL.
  • All constituents including Individuals, Proprietary concerns, Partnership Firms, HUFs, Ltd COs, LLP, etc. are eligible.
  • The facilities are for working capital requirements.
  • The guarantor for the loan can be partners or title holders of the property.
Terms and Conditions
  • For trade borrowers to be eligible under the Varthaga Mitra Scheme, it is necessary for them to have been in business, carrying out business operations, for at least one year.
  • Agricultural land will not be accepted as security.
Charges and Limits
Loan Amount Maximum of Rs. 500 Lakhs
Margin Security Coverage of 167%.
Primary Security
  • Residential / Commercial land and building property with a 50% margin / Term Deposits / National Savings Certificates / Life Insurance Policies (all or any of them) may also be accepted to cover the difference amount in full with the following conditions:
    1. The instruments should be in the name/s of the applicant, proprietor / partner/s of the applicant firm.
    2. The surrender value alone will be considered for insurance policies.
    3. The lock-in period (if any) for National Savings Certificates, should have been completed and the face value has to be taken.
Collateral Security Hypothecation of stock-in-trade and book debts.
  • The savings overdraft shall be for a period of one year and shall be reassessed and renewed before the expiry of the due date based on the financial / operational performance.
  • Short term loans shall be considered for a maximum period of 60 months, repayable in monthly installments with interest at monthly rests.
Interest Rate
  • The applicable Rate of Interest (ROI) is linked to the Credit Score / Rating.
  • For details please refer the section on Interest Rates.
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