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Loan To Traders for Working Capital
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Eligibility
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Key Features
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Charges
Loan To Traders for Working Capital : Eligibility
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All business/service concerns having sales turnover upto AED 100 million and undertaking the business of trading in goods and services
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Security: Assignment/mortgage of the immoveable property, personal guarantee, etc.
Loan To Traders for Working Capital : Key Features
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The scheme aims at providing finance for working capital and other long-term purposes against the security of cash margin and/or immovable property
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A single line of credit for working capital such as Overdraft, Trust Receipts, BP/BD/LCD, short-term demand loans, Letter of Credit, Bank Guarantees, and long-term requirements against the security of certain cash margin and/or immovable property
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The working capital limit can be extended up to 20% of the projected sales turnover subject to following:
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In case security is available (subject to maximum AED 3 million)
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60% of the value of mortgage/assignment
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50% of the value of the possessory pledge
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In case of collateral security is not available (subject to maximum AED 3 million)
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60% cash margin if the establishment is less than 3 years old
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50% cash margin if establishment is > 3 years
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Period: Working capital finance–renewable annually term loans - Up to 7 years
Loan To Traders for Working Capital : Charges
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Rate of interest*: Competitive rate of interest prevailing at the time of sanction
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*Terms: Rates and charges are subject to change from time to time
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What is a Loan to traders for working capital?
A loan to traders for working capital provides financing for working capital by accepting cash margin and/or immovable property security as collateral.
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What are the eligibility criteria for a Traders Loan?
A satisfactory track record and financial assessment based on the Company's business model are necessary to apply for a Traders Loan.
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How Can I Apply For a Loan to Traders For Working Capital?
To apply, complete the application form, attach the required documents, and submit them at a Bank of Baroda branch near you.
