LOAN AGAINST GOVERNMENT BONDS

Objective: To Provide loan against Government Bonds.

Types of Assistance: Short Term/Medium Term.

Eligibility: Any Individuals and institutions.

Permissible Loan
Amount: 90% of the pledged government bond.

Interest Rates : Per Annum

Types of loan	Prime
Loan Against Givernment Bond	+2.00%

 Based on minimum term lending rate fixed from time to time.
 Actual rate within the prevailing rate band depends upon creditworthiness of borrower and risk perception.
 Interest is payable quarterly.

Security: Pledge of Government Bonds.

Tenure Depends upon the maturity of the Govt. bonds.

Repayment:
 Interest payment on quarterly basis and principal payment upon maturity.
 In the event of non-payment of any installment or in the event of any other irregularity continues, in such a situation a penalty will be levied as per the Bank’s regulations.
Documentation:
 Loan Agreement Paper.
 Hypothecation Deed.
 Promissory Note.
 Internal Loan Commitment Paper.
 Registration/Tax Clearance Certificates including (VAT).
 Articles of Association and Memorandum of Association.
 Loan Authorization Letter.

Promissory Note.
Internal Loan Commitment Paper.
Registration/Tax Clearance Certificates including (VAT).
Articles of Association and Memorandum of Association.
Loan Authorization Letter.