Frequently Ask Questions.:
Question-1. Who is our target segments?

  • Sole Proprietors/Proprietorship firms/Pvt. Ltd. Companies/Public Ltd. Companies/Professionals – Doctors, Architects, Chartered Accountants, Business Consultants.

Question-2. What is the minimum and maximum annual turnover eligibility?

  • Minimum turnover – INR 90 lakhs. Maximum turnover – INR 45 crores.

Question-3. What is the maximum loan amount offered on a LAP OD product?

  • You can avail of a combination of Term Loan and Overdraft against your property up to a maximum of INR 50 crores subject to eligibility conditions being met.

Question-4. What is the maximum tenure of the loan?

  • The maximum tenure for which you can avail the facility is upto 15 years. Overdraft tenure will be 12 months subject to annual renewal.

Question-5. How much amount of the total sanctioned limit can I expect as Overdraft?

  • Overdraft facility can be up to a maximum of 50% of the total sanctioned limit. However; the exact amount of overdraft limit will be based on assessment of working capital requirement. Specific details would be provided by the sales officer.

Question-6. What do I need to give as security?

  • We accept both residential and commercial property as security. No plot, self construction or under construction properties will be allowed.

Question-7. What is the interest rate on the facility?

  • We offer attractive interest rates on the facility depending on loan amount, credit assessment and other parameters. Further details will be provided by our sales officer.

Question-8. What are the basic documents required for applying for the facility?


    • 1. Twelve months bank statements.
    • 2. Three year complete financials including Profit & Loss, Balance sheet and ITR.

3. Pan card copy with office address proof.

Question-9. What are the pre-closure charges on LAP/OD?

  • Pre-closure charges – 2% of the outstanding amount (service charges extra) Part prepayment charges – 2% of the amount part prepaid (service charges extra) Specific details on the OD charges would be provided by the sales person.

Question-10. What is the turnaround time for the disbursal of the loan?

  • Disbursal of the loan may take a minimum of 7 working days from the time of submission of loan related documents as requested by the Bank.

What is the structure of working capital loans?

The loans are structures as per the specific requirement of a client. This means the loans may be available in any instrument separately or as a mixture of cash credit, bill financing, demand loan and non-funded facilities. The solutions are designed to suit each individual requirement in an optimized manner.

What is the approval process for these loans?

The loans are generally approved after the credit team of a lender verifies all the aspects of the application and tailors its solution to meet the client’s needs.

What are general tenures of working capital loans?

Each bank has its own tenure limit forworking capital loans. In general, these loans have a tenure of up to 1 year, though higher and lower tenures are also available. Some specific self-liquidating lending are connected to the normal tenure of transaction such as export credit, bill finance etc.

How are these loans priced?

The Working capital loans are generally available on floating interest rate.