Limit sanctioned To the extent of 60% of (own capital + funds from friends and relatives), to be related with debt equity ratio and current ratio.
Margin (Addition) In case of Stock 40%
In the case of book debts 50%
Addition Review / renewal every year.
Guarantors Only two guarantors.
Security In case of credit facility limit exceeds Rs. 25000/- collateral security is essential.
Collateral security in the form of F.D.R., L.I.C. policy, N.S.C., Immoveble Property, etc.
The turnover should be more then 5 times of the sanction limit. Refer Credit Rating Policy for more details.