"Hypothecation Loan" - The Gandhinagar Nagarik Co-op. Bank

The Gandhinagar Nagarik Co-op. Bank offers Hypothecation Loans to meet various financial needs of its members and customers. A hypothecation loan is a type of secured loan where the borrower pledges movable assets, such as inventory, machinery, or vehicles, as collateral to the bank. The ownership of the asset remains with the borrower, but the bank has a charge over it.

• Hypothecation of stock credit facility is available as a working capital for development of business against prime security of stock and collateral Security. Trading / Manufacturing units, Traders, Business community can avail the credit facility.

Applicant details :

• Last three years balance sheet, copy of 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-two copies
• Last tax bill
• Last income tax return copy / Pay slip of last 3 Months.
• Address proof - electric bill /telephone bill (any one)
• Photo proof - Pan card / Voter card / Driving license/Aadhar card (Any one)

Conditions :

• The limit will be decided on the basis of turn over (sales) / projected sales i.e. 20% of turnover (sales) or projected sales against stock 30% margin of stock.
• Applicant has to provide collateral security to the tune of 70% of the limit by way registered mortgage declaration 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 quarter and before 10th of the next quarter.
• The applicant has to provide two guarantors.
• Limit is subject to renewal after 12 months.
• Applicant has to take share @ 1% of the limit.
• The processing charges for loans will be levied based on the sanctioned amount and the type of loan.