||Hypothecation of all movable assets including furniture and fixtures, vehicles, instruments, computers and all other equipments as well as infrastructural requirements required for the institutions, not specifically charged to any other Bank/FIs.
- All the cash flows of the institute shall be routed through Trust and Retention account opened with the Bank.
- Equitable/ Registered mortgage of Land & Building of the Educational Institution (wherever permissible and not restricted by affiliating/ approval authority of education institution/ local Govt. laws/guidelines).
Where Land and building of an educational institution cannot be mortgaged due to restriction from affiliating/ approval authority of education institution/ local Govt. laws/guidelines, in such alternate collateral security in the name of the institution or promoters of the institution equivalent to a minimum of 30% (in terms of RV) of the Loan Amount shall be obtained as collateral security.
Further, in such cases, a stamped letter/ negative lien be obtained from the borrower stating that no charge will be created on the institutions property (including land for which loan is being extended) and prior permission from our Bank should be obtained before creating any kind of charge.
|Coll. Security / Security Coverage
Equitable/ Registered mortgage of Land & Building (but not agricultural land) of other institute of the borrower (wherever permissible and not restricted by affiliating/ approval authority of education institution/ local Govt.laws/guidelines) and/or belonging to promoters viz. Trustees/ Members of the Society/Proprietor/ Partners /Directors, who shall also stand as guarantor.
In case of partial constructed property, the realizable value of land is to considered for collateral coverage.
- Personal guarantees of the Promoters/ Trustees/ Members of the Society/ Proprietor/ Partners /Directors (excluding professional or independent directors) of the Institution.
- Minimum overall security (primary and collateral) coverage should not be less than 200%.(in terms of RV)
- While sanctioning credit facilities to the Educational Institutions, comfort should not be derived from the securities being offered. The viability of the project and cash flows of the Educational Institutions are to be relied upon while considering any credit facilities to the Educational Institutions.