Eligibility of borrower:

 The following persons/entities shall be eligible:

• Any individual (salaried / self-employed / professional), proprietorship firm, partnership firm, LLP or private limited company, having a Savings / Current Account with the Bank and maintaining satisfactory banking transactions with the Bank.
• The residential or commercial property offered as security must be situated in Surat, Mehsana or Patan Districts and must be held in the individual or joint name(s) of the person(s) availing the OD facility
• The property must have clear and marketable title supported by proper title documents, and possession of the property must be with the person availing the OD facility.
• Real estate developers, land brokers, share brokers and persons engaged in speculative activities shall not be eligible for this OD facility

Purpose of Loan:

  The Overdraft facility may be sanctioned for the following purposes:

• For trade, business, industry or profession;
• For personal financial requirements;
• For other general purposes.

The OD facility shall not be sanctioned for share market trading, speculative activities such as crypto assets, activities prohibited by law or RBI, or any activities specifically prohibited by the Bank.

Maximum OD Limit:

   For Business Purpose

• Maximum OD limit: ₹50,00,000/- (Rupees Fifty Lakh only)

  For Non-Business Purpose

• Maximum OD limit: ₹25,00,000/- (Rupees Twenty-Five Lakh only)

  Determination of OD Limit

  The OD limit shall be determined as follows:

• For Business Purpose:
  Where the OD facility is availed for business purposes, the maximum lending limit shall be determined by the Board of Directors, taking into consideration the Market Value / Realisable Value / Distress Value of the property as per the valuation report. The sanctioned limit shall also be subject to a maximum of 20% of the annual / projected turnover of the business.    
• For Non-Business Purpose:
  Where the OD facility is availed for non-business purposes, the maximum lending limit shall be determined by the Board of Directors, taking into consideration the Market Value / Realisable Value / Distress Value of the property as per the valuation report.

Share Linkage:

• The person/entity availing the OD facility shall be required to hold Bank shares equivalent to 1% of the sanctioned OD limit    

Repayment period: 

• The OD facility shall initially be sanctioned for a period of 12 months, subject to applicable renewal terms and conditions.
• Upon review of the account, the Bank may gradually reduce the operative limit of the facility, wherever considered necessary.

Current Rate of Interest:

• OD for Business Purpose: 10.75% p.a.
• OD for Non-Business Purpose: 12.00% p.a

 Security:

 Primary Security:

• Equitable / Registered Mortgage of the immovable property in favour of the Bank. 

 Collateral Security:

• Hypothecation of Stock and Book Debts.
• Where considered necessary, liquid securities such as Fixed Deposits (FDs), LIC Policies, etc. may also be obtained.