Target group


Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc established as Proprietorship / Partnership firms, Limited Companies




1. Engaged in the business line at least for the last 3 years

2. Having Audited Financial Statements

3. Entry level credit rating should be SBS 5. No deviation to be considered.




For Meeting Working capital needs.


Nature of facility


Line of Credit by way of fund based working capital limit, Bank Guarantee/ letters of credit


Quantum of Limit


Minimum Rs.10 lacs and Maximum Rs.500 lacs


Appraisal of loan

1. 30% of last two years average turnover.

2. Of this, 2/3rd will be used for Fund Based facility and 1/3rd for Non-fund based facility such as BG/LC.




Minimum 20% for fund based facility. Though the limit will be treated as unsecured, contractors will have receivables which should be charged to the Bank and a margin of 20% maintained thereagainst.

Minimum 15% cash margin for non-fund based facility


Rate of Interest

As per prevailing rate of interest structure in terms of HOBC:113/167 dt. 13-12-2019


Processing Fee, Documentation charges, Commitment charges etc

As per Extent guidelines of the Bank




Primary :

i.) First charge on the unencumbered assets of the company/firm both current and fixed assets.

ii.) Margin on non fund based limits.


Collateral :

Suitable collateral to be obtained so that asset cover of 1.50 is maintained.



Assets charged to the bank to be comprehensively insured covering various risks including civil commotions and riots. The policies should be renewed from time to time and copy retained on branch record. Bank’s interest to be got noted in the insurance policy. Separate insurance policy to be obtained for the mortgaged property


Due Diligence

The bank will conduct its own due diligence (including pre-sanction visit).


Sanctioning Authority

As per extant delegation of power



To be obtained according to the release of fund covering specific facility

For Fund based For BG - For LC
IFD -10    
D.P Note LG-12 Application for Documentary Credit
Bearer letter LG-13 LG-13
L-516 LG -15 Counter Guarantee
OD – 194    

( Besides, documents required to be obtained as per respective state laws) Other supporting documents as applicable i.e.

- Identity/Residence proof

- Photograph of borrower/co – borrower and guarantor with their signatures attested by the their Bankers.

- Balance sheet and profit loss statement of last three years in case of firms/companies.

- Partnership letter in case of partnership firms.

- Copy of Memorandum and Articles of Association, certificates of Incorporation and Commencement of business duly attested and copy of board resolution for availing the loan in case of limited companies.


Authorized branches

All branches of the Bank.