1. Finance against Securities is an Overdraft facility provided against the pledge of securities from the approved list of securities accepted by the Bank. This facility is offered for a tenure of 12 months and is renewable at the discretion of the Bank basis satisfactory review. Bank may recall the credit facilities at any time during its continuance at its sole discretion.
2. The facility should be used for the purpose it is granted by the Bank / declared by you at the time of availing the facility. All credit facilities are at the sole discretion of the Bank and subject to RBI / SEBI regulations and all applicable laws from time to time.
3. Loan-To-Value (“LTV”) ratios are subject to the Bank’s periodic review and may change at any time. Bank from time to time formulates policies as to the scrip composition criteria, maximum/minimum number of scrips, methodology for valuation of securities etc., which policies are subject to change at the sole discretion of the Bank. The value of the Securities pledged for the facility is determined by the Bank, as per its valuation methodology.
4. Interest is charged monthly on actual utilization. The interest rate applicable for the facility is the summation of the External Benchmark rate and other customer specific charges, referred to as ‘Spread’ at the time of origination and thereafter. Your floating interest rate is linked to the External Benchmark Rate. The Repo Rate is the benchmark rate for this lending product in the Bank. The External benchmark rate will be published monthly on the Bank’s website at sc.com/in.
5. Penal Charge of 2% per annum will be charged on the excess amount outstanding over the limit sanctioned / made available by the Bank from time to time.
6. Interest rate, processing charges, Overdraft Transaction Charges and all other charges are subject to change at the sole discretion of the Bank and/or as directed by RBI
