The financing against Chappal Product is designed to meet the financial needs of business unit making / trading Chappals. Chappal is traditional footwear of Pakistan, worn especially by people of Khyber Pakhtunkhwa & Balochistan regions. Financing against Chappal Product may be provided to Small and Medium Enterprises of Chappal making industry, which should be in existence for at least two years.
Chappal making / trading entrepreneurs will be offered Term Finance for Working Capital (TFWC) for meeting operational / trading expenditure including the raw material.
- Avail finance facility from Rs.50,000 to Rs.500,000
- Financing facility may be extended up to 3 years.
- Markup to be charged at 1 year KIBOR+6% p.a
- Repayment (Principal and Markup) to be repaid in Equal Monthly Installments.
- Securities may be two personal guarantees of gazette government officers,
- Rupee Deposit Account/Saving Certificates with 20 % margin.
- Mortgage of property acceptable to Bank having FSV 1.5 times of the facility amount.
- Hypothecation of stocks, machinery /equipment / receivables will be taken in addition to above mentioned securities with 25 % margin.
- The borrower must not be a defaulter of any financial institution.
This product will also comply with Bank’s Credit Policy / Credit Manual & SBP Prudential Regulations.
Cash Near Cash Security with 10 to 20% margin..