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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.

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500 Lakhs

Max loan amount

167.67%

Security Coverage

60 months

Max repayment tenor

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.
Repayment	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.