LOAN ON BUILDING FOR SSI UNITS
1) SSI Building Loan shall be sanctioned to individuals, proprietorship concerns and partnership firms by mortgaging industrial site, building etc., The Borrower shall have good deeling with the Bank and business reputation in the society.
2) SSI Building loan shall be advanced for construction of factory, workshop etc., for the purpose of SSI units. The borrower should produce a certificate of registration under Small Scale Industries issued by the competent authority. In case of partnership firm, partnership deed duly signed by all partners and countersigned by a witness should be produced.
3) Construction of SSI Building should be planned and estimated by a competent person (Civil Engineer). The property proposed to be mortgaged to th Bank should be avaluated by a competent authority. Property should be mortgaged through registered with the appropriate authority and Bank’s name shall be entered in encumbrance certificate.
4) SSI Building should be insured against fire and other risks such as earthquake, riot, flood, strike and civil commotion etc, in the joint name of the Bank and the borrower. Insurance policy should be kept with the Bank. Insurance policy should be renewed on due date by debiting a account of the borrower.
5) Documents : The borrower should produce the following documents necessary for disbursement. i) Demand Promissory Note ii) Property Extract (4 copies) and Encumbrance Certificate for 13 years. iii) Plan and Estimation by competent person. iv) Permission from local authority v) Agreement vi) N.A. order copy vii) Continuing security letter viii) Feasibility Certificate from Electricity supply agency ix) Income and Expenditure Statement brom borrowers x) Any other documents prescribed by the Bank from time to time
6) Repayment Schedule shall be intimated to the borrower at the time of disbursement. Instalments and interest should be paid within prescribed time. As per RBI guidelines the borrower should be granted moratorium period for repayment schedule.
7) Loan shall be disbursed in four equal instalments as prescribed in the ‘Loan Policy’ of the Bank.
8) Periodical review should be done by the concerned officer of the Bank.
9) In case of default in payment of instalments and interest within prescribed time the Bank should take necessary recovery proceeding by giving a notice to the borrower and the guarantor.