|Union Bank of India
|Union Liqui Property
|· To meet working capital requirements for business activity.
· For Shoring-up of Net Working Capital
· For purchase/construction/renovation of factory/ offices / shop / godown
· For purchase of plant & machinery
· For purchase of equipment.
· Financing repayment of high cost debts
|· All business enterprises irrespective of constitution (Proprietorship/Partnership/Companies/Trust/Association etc) other than individuals and HUF engaged in business activity for minimum last two years.
· Units should have in place all necessary statutory approvals / NOCs from respective authorities.
· Credit Rating of the borrower should not be below UBI-5 in case of new connection and UBI-4 in case of takeover advances.
· All new as well as existing accounts can be covered under the scheme.
· Enterprises engaged in speculative activities/Real Estate activities are not eligible for finance under this scheme.
|Rate of Interest & Repayment
|Rate of Interest –
(rate of interest is subject to revision from time to time)
· Excluding additional credit risk premium for term loans
· Term Loan to be repaid in maximum 120 months inclusive of moratorium period not exceeding 6 months. Interest is to be paid as and when due.
· Overdraft facility is for a period of one year. However, it may be further extended subject to review/renewal of the facility by competent authority on yearly basis.
|· Equitable Mortgage of residential / commercial / industrial property (Land & Building) located at Metro / Urban / Semi Urban areas only, which are un-encumbered from other bank / FI and should be enforceable under SARFAESIA.
· The existing immovable property held as prime/collateral security for a particular credit facility can be accepted as prime/collateral security for other credit facility. However, the value of property to be considered for the purpose of prime/collateral security is to be restricted to the residual value of property in excess of 200% of the outstanding of the loan facility against which the property is held as prime security.
· The property should be in the name and possession of applicant / proprietor / partners / directors /promoter.
· Property in the name of close relatives i.e. father / mother / spouse / son / unmarried daughter of the proprietor / partner / director / promoter may also be accepted and in that case the property owner should stand as guarantor.
|Composite /loan Limit
|· Minimum Rs.0.10crore
· Maximum Rs.10.00crore
|Margin on Value of Property – 50% of the fair market value of the property as per valuation report i.e. value of property should be minimum 200% of the proposed loan amount.