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Our Correspondent

Madurai , June 7

STATE Bank of India (SBI) has introduced a new scheme of `Mortgage loans for traders' for borrowers in trade and services.

Addressing the presspersons here recently, the SBI General Manager, Chennai Circle, Mr P. Pradeep Kumar, said the new scheme sought to provide a hassle-free financial assistance without undue reliance on financial statements, periodical submission of stock statements, periodical inspection by bank officials, policing of operations etc.

While the minimum quantum of loan will be Rs 25,000, the maximum is Rs 5 crore and the facility can be used either as a term loan or cash credit or a combination of both. The loan is made available to small business enterprises, retail traders, wholesale dealers, professionals and self-employed. 75 per cent of the realisable value of the property mortgaged within municipal limits will be extended as loan.

While cash credit will carry an interest of 10 per cent, the rate for term loan will be 10.50 per cent. The maximum repayment period for term loan will be 60 months. The scheme has already been introduced in 50 cities in the country. An exclusive credit centre has been opened in the city for the purpose with branch sanction limit of Rs 1 crore. "Our terms are the most attractive than other banks," he added.

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