Home | Gujarat Mercantile Co-operative Bank Ltd.

Hypothecation of stock / book-debts credit facility is available as a working capital for development of business against prime security of stock or book debts. Trading / Manufacturing units, Traders, Business community can avail the credit facility.

Applicant details

Last three years balance sheet, copy of 3 year income tax return, copy of Partner’s personal return , Memorandum and Article of Association in case of limited company, resolution for loan application.
Tax bill of Property
Three photographs of Applicant.
Business proof of Applicant.
Applicant’s Pan card / Partner’s Pan Card / Limited Company’s Pan card.
Bank account statement of last 2 years.
Stock statement of the business.
Applicant has to show all original documents to the bank for verification with zerox copy. Original documents will be returned to applicant after verification.

Guarantor details

Photograph-2 Copies.
Last tax bill.
Last 3 Years income tax return copy
Address proof – electric bill /telephone bill (any one) As per KYC norms

Conditions

The limit will be decided on the basis of turn over (sales) / projected sales i.e. 20% of turnover (sales) or projected sales.
Applicant has to provide collateral security to the tune of 80% to 90% of the limit by way registered mortgage of residential premises, office, shop, godown, shed etc.
Insurance of stock and mortgage property to be taken in favour of bank by the applicant.
Original documents such as share certificate, Sale deed, Tax receipt allotment letter are required for registered mortgage of the property.
Title clearance and valuation report will be done by approved lawyer and valuer of the bank. Applicant has to pay their fees.
Applicant has to submit stock statement at the end of every month and before 10th of the next month.
Two guarantors are required.
Applicant has to submit 30 cheques for repayment of instalments and remaining cheques as per bank’s instruction.
The applicant has to provide two guarantors.
Limit is subject to renewal after 12 months.
Applicant has to take share @ 2.50% of the limit.
Processing charges of 0.5% will be levied on sanction.

Hypothecation of stock / Book Debts

Applicant details

Guarantor details

Conditions