SECURED LOANS
TERM LOANS BACKED BY ASSETS
These loans require the borrower to pledge primary security for the money being borrowed. In case the borrower is unable to repay the loan, the bank reserves the right to utilise the pledged security to recover the pending payment. The interest rate for such loans is much lower as compared to unsecured loans.
OVERDRAFT LIMITS BACKED BY ASSETS:-
These loans require the borrower to pledge primary security for the money being borrowed and borrower can avail overdraft on reducing and drop down basis. Interest will be charged on the basis of limit utilised. Benefit in this Overdraft is that borrower need not to submit monthly stock statements as well as there is no mandatory requirement of maintaining turnover. It will be sanctioned on the basis of individual income tax returns.