• Retail traders or small business enterprises doing business in Pondicherry Region.
• Professional and self employed persons

Purpose :-

• To improvement of the existing retail trade business
• To Cottage and S.S.I. Industries

Quantum of Loan :-

• The maximum amount of loan shall not exceed Rs. 20000/-. However the loan shall be restricted to eight times the net salary of the borrower.
• The maximum amount of loan shall be as follows:

Rate of Interest:-

Please click here : Latest interest rates

Repayment:-

• The period of repayment of the loan shall be 24 equal monthly instalments. However the period of the loan shall be determined with reference to the repaying capacity of the borrower subject to the maximum period stated above.

Security:-

• Loan shall be granted on the surety of another member of the Bank who shall be a Government servant with a minimum regular continuous service of not less than 2 years in Government services.
• No member shall stand surety to more than one Borrower.
• The surety shall not be related to the borrower or in business with him

Processing Charges:-

• A flat rate of 0.5% of the loan amount. This is subject to change from time to time.

Document Required:-

• The application for Business loan should be signed by the Principal borrower as well as the surety and should be accompanied by:-

1. An application Form

2. Xerox copy of the license/registration certificate issued by the competent authority in proof of running the business

3. Balance Sheet and Income and Expenditure statement of the Business pertaining to the previous year, duly certified by Chartered Accountant.

4. Income certificate obtained from Deputy Thasilthar.

5. Xerox copy of the sales tax assessment order, if any for the last year

6. A copy of the project report, approved by District Industrial Centre , Pondicherry showing the economic viability and technical feasibility of the project in the case of S.S.I. Loan.

7. Demand promissory Note.

8. Personal surety bond

9. Continuing security letter

General :-

• No member shall be eligible for surety loan, if he is already default to the Bank as borrower or as surety, by way of any loan or cash credit.
• The instalment shall be paid by the borrower before the due date without default. The Bank has the right to foreclose the loan account and initiate legal action against the borrower and surety if the default continuous for more than three months.
• Loan shall be granted only after due verification of the application as to the applicant’s integrity, credit worthiness and his repaying capacity.
• No loan shall be claimed as a matter of right. The Administrator has the right to refuse sanction of loan if it is not satisfied about the ability of the borrower to use the funds for genuine purposes and about the sufficiency of the Income generated by the loan or from other sources of the borrower to repay the loan within the stipulated period. When the income is found to be inadequate for the purpose of determining the repaying capacity of the borrower, the Administrator has the right to restrict the loans sanction to the extend of his/her repaying capacity.
• 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.