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  • Working Capital is basically the investment in current assets like raw materials, stores, semi-finished goods, finished goods, sundry debtors etc.
  • It represents the money that is required for purchase / stocking of raw materials, payment of salary, wages, power charges etc. and also for financing the interval between the supply of goods and the receipt of payment thereafter.
  • Working Capital Finance is extended in different forms basing on the requirement in the form of Inventory Limits (Pre-Sales), Finance against Receivables (Post-Sales), Non-Fund based limits and Short Term Lending products.
  • Working capital requirements of a unit would be assessed by adopting various methods like Turnover Method, Maximum Permissible Bank Finance (MPBF) System, Cash Budget System and Net Owned Funds System, depending on the type of activity.
  • The securities for working capital facilities per se would be as per general lending norms of the bank and also depends on the risk perception of the individual account.
  • Rate of interest on working capital finance depends on quantum of loan, nature of activity, purpose of loan, risk rating, financials etc.

DOCUMENTS REQUIRED FOR WORKING CAPITAL LOANS

1. Loan Application form

 

2. KYC (applicant & co-applicant) -
  • Individuals : latest passport size photograph of applicant & all co-applicant’s duly signed
    • Id proof - Aadhar card (UID), clear copy of pan card/passport/driving licence. (Pancard must or Pancard issuing letter)
    • Signature proof – clear copy of pan card/bankers verification/passport/driving licence.
    • Address proof - Aadhar card (UID), latest post paid telephone bill and electricity bill/ valid rent agreement.
  • Partnership firm
    • ID proof of firm - firm pan card (clear copy of pan card or pan card issuing letter)
    • Office address proof -latest post paid telephone bill (must) and electricity bill valid rent agreement.
    • Partnership deed and partnership registration certificate.
  • Pvt.Ltd & Public Ltd Companies
    • Company id proof – clear copy of company’s pan card must required.
    • Address proof latest post paid telephone bill and electricity bill valid rent agreement.
    • Business proo
      • MOA & AOA
      • incorporation certificate
      • business commencement certificate (for ltd. Company)
      • board resolutio
      • share holding pattern (C.A/C.S certified)
      • ROC annual return
      • form no. 32. (if director change)
      • DIN no. Certificate
      • list of directors on company letter head

Note- GST/ trade licence/sales tax no./vat tax no./service tax no./excise no. Etc. (any one)

3. Income Documents-
  • Proprietorship firm & Partnership firm
    • CMA DATA & project report (if any)
    • Debtors & creditors certificate
    • Turnover C.A certified certificate /GST return (YTD)
    • Latest 3 years ITR acknowledgement copy of applicant & all co-applicant
    • Computation of income, trading & profit & loss a/c, & balance sheet with all annexures (for non-audited- C.A certified with membership no.)
    • Annual audit report & tax audit report in case of audited firm.
    • Form 16 a (TDS certificate), if applicable.
    • Net worth Certificates of proprietor, all partners, guarantors.
  • Pvt. Ltd. & Public Ltd. Companies
    • CMA DATA & Project Report (if Any)
    • Latest 3 years ITR acknowledgement copy of companies & all the directors
    • Latest 3 years annual audit report & tax audit report with articles 3cb & 2d, 3cd must be required.
    • Form 16 a (TDS certificate), if applicable.
    • Net Worth Certificates of Guarantors.
4. Banking
  • Individual:
    • latest 180 days major current A/c , Cash Credit a/c , OD A/c statement (in case of switching over bank) (applicant & all co-applicants)
    • Loan statement & NOC documents – all running loan statement starting to till date & latest closed loan NOC
  • Partnership firm
    • Primary banking - latest 365 days major account, Current A/c, Cash Credit A/c, OD A/c statement.
    • Secondary banking - latest 180 days major saving A/c (Applicant & all Co-applicant)
    • Loan statement & NOC documents - all running loan statement starting to till date & latest closed loan NOC
  • Pvt. Ltd & Public Ltd Companies
    • Primary banking - latest 365 days major A/c , CC A/c , OD A/c statement.
    • Secondary banking - latest 180 days major saving a/c applicant & all directors saving A/c statement)
    • Loan statement & NOC - all running loan statement starting to till date & latest closed loan NOC.
5. Property documents for security purpose -
  • Previous & current sales deed
  • Plant & machinery list
  • Plant & machinery current valuation report
  • Margin money
  • Property photographs
  • Previous property search & valuation report
6. Other business relevant documents -
  • Business profile of firm / company
  • Profile of promoters/ guarantors
  • Corporate brochure
  • Business experience supporting documents
  • Business references

** all the copies of the above mentioned documents should be in a4 size & self-attested individually with blue ink.

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Last updated on 24-06-2024 05:44 AM

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