Registration No - P-14, Address : No. 197, Jawaharlal Nehru Street, Puducherry - 605 001

Eligibility :

  • Individuals more than 18 years
  • Partnership firms and Limited Companies engaged in Business, Industry etc., in the Puducherry Region

Purpose :-

  •  To improve business

Quantum of Loan :-

  • On mortgage of unencumbered immovable property, wholly belonging to the borrowers/ relatives of the borrowers shall not exceed to Rs. 7.00 lakhs or 75% of the estimated market value of such property whichever is less

Rate of Interest:-

Please click here : Latest interest rates


  • Loan shall be in force for one year only from 1st January to 31st December and application for renewal shall be considered only when the operations on the limit are regular and satisfactory and after payment of interest due by the borrower.


  • Loan shall be granted on the security of hypothecation of goods and the Bank has general as well as special lien/charges on the goods. The Bank has the right to retain the goods pledged till the payment of not only the debt but also interest on debt and all the necessary expenses incurred by him for storage and preservation of goods as security.
  • Mortgage of unencumbered immovable property wholly belonging to the borrower/ relatives of the borrower and all usual procedures shall be adopted as in the case of House Mortgage Loan.

Processing Charges:-

  • A flat rate of 0.50% of the loan amount. This is subject to change from time to time.

Document Required:-

  • An application Form
  • Original title deeds of the properties to be mortgaged establishing title for 30 years
  • Encumbrance Certificate of the property for such period as may be required by the bank.
  • Valuation Certificate issued by an Officer of the Revenue Department of the Government of Puducherry not below in rank than that of Tahsildar.
  • Proof of Income for professional, business people
  • Salary Certificate as a proof of Income for Government Employees
  • Promissory Note, Letter of lien and set off, continuing security letter
  • Xerox copy of license / registration Certificate in proof of running the business
  • Balance sheet and Income and expenditure statement of the Business pertaining to the previous year, duly certified by Chartered Accountant
  • Xerox copy of Sales Tax assessment order, if any for the last year.
  • A copy of Project Report, approved by District Industrial Centre, Puducherry showing the economic viability and technical feasibility of the Project in the case of S.S.I. Loans
  • Letter of independent access to the godown
  • Declaration of Ownership

General :-

  • The limit of Cash credit loan and the security shall be examined in the Board/Administrator meeting every year and revised if necessary according to the directives by the Reserve Bank Of India and the inspection conducted by them during the year.
  • It shall be open to the Bank to reduce the limit or terminate the Cash Credit Loan sanctioned to a member after giving one month notice.
  • The borrower shall insure the goods for the full value against the risk of fire or riot and whenever necessary against burglary in the joint names of the borrower and the Bank.
  • The borrower shall produce a declaration regarding ownership of goods hypothecated by the borrower.
  • The maximum amount of loan that may be sanctioned will depend on the need for such requirements/ assistance of the business concerned subject to the ceiling limit fixed by Reserve Bank of India and annual turnover of the concern.
  • The partnership firm shall be registered with the Registrar of Companies. Sole partnership declaration shall be obtained in case of individual.
  • The Bank shall be at liberty to call for additional/collateral security or securities while sanctioning the loan or at the time of renewal.
  • The Bank shall be at liberty to inspect the Books of accounts maintained by the borrower and verify the goods hypothecated by the Bank at any time.
  • Monthly stock statement shall be produced by the borrower,
  • The Bank shall charge any expense towards investigation in connection with the verification of titles, goods etc.,
  • The borrower shall declare his existing dealings with other banks and shall also give an undertaking that no charge on the hypothecated stocks will be created in favour of any other institution without prior consent of the Bank.
  • The Bank’s name shall be displayed prominently on the Business concern in the style “Hypothecated to the Pondicherry Co-op., Urban Bank Ltd.,”
  • No member shall be eligible for Cash Credit Loan if he is already default to the Bank as borrower or as surety by way of any loan.
  • Download the application form. Save it on your computer, print it out and send it to the nearest/convenient branch for Processing
  • While all efforts have been made to update the information, constituents are requested to contact the branches for latest details.