Eligibility

Individuals/proprietary/partnership/Private limited company engaged in Retail Trade.

Purpose

To meet the working capital needs and also term loan needs viz. buying a shop, showcase, equipment and in general for setting up/running a shop or office or any other contingent requirements relating to the business of retail trade

Types of Advance

Working capital needs will be met in the form of cash credit or TOD/ Term loan.

Maximum Eligible Loan

The minimum finance under the scheme is Rs. 100,000/- and the maximum is Rs. 100 lacs. The total of working capital and term loan put together should not exceed Rs. 100 lacs. In rural branches, the maximum limit that can be considered is Rs. 10 lac only.

Margin

The advance is fully secured by collateral security and margin on the collateral security, depending on the nature of security, is to be maintained.

Interest Rates

Retail Credit Interest Rate (Click here)

Repayment

Term loan is to be repaid in max. 48 EMI. Cash Credit will be renewed / reviewed every year.

Security

The advance is secured by Immovable property and / or liquid assets such as Life policies of LIC of India and Private insurance companies approved by IRDA, NSC/IVP/KVP etc.

Margin

Liquid Securities: Life Policies - 10%; KVP/IVP/NSC - 20%; Term deposit - 10%.

Immovable property: The margin is 30% if the property is located at urban and Metro centres, 40% for semi urban centers and 50% if the property is located at rural centres.

Processing Charges

As applicable from time to time. For up-to-date Processing Charges, you are requested to kindly visit your nearest IOB Branch.