State Bank of India has sanctioned Cash Credit Limit of Rs. 16 crs and Letter of Credit Limit of Rs. 9 crs. Next renewal is due on 29/12/2019. Now Saraswat Co op Bank is taking over both the Limits. State Bank of India informing that they charge Pre payment charges of 2% on Cash credit limit and also Letter of credit Rs. 50 lakhs. I want to know whether they can charge pre payment charges on Non fund based limit Letter of credit of Rs. 9crs.?
05 November 2019
Thank you Sir for the reply. Condition is that 2% prepayment charges on prepaid amount. For LC there will not be any prepayment and Saraswat Bank will give a counter guarantee for the outstanding LCs
08 December 2019
Sir, Now after expiry of the period, Saraswat Bank is taking over the facilities, Cash Credit and LC limits from State Bank of India. SBI is not giving the detailed list of property documents held by them, to Sarawak Bank for getting Legal Opinion. They have given only THE LIST OF HOLDING OF ORIGINAL SALE DEEDS of Properties and nothing else. What we can do? We are in urgent.
08 December 2019
They can give only original holding what else you want. SBI reputed and largest bank and their charges are reasonable why you are leaving.
08 December 2019
Thank you Sir, Saraswat Bank requires list of related documents like khata extract, EC, Alienation copy, which are kept and mentioned in EM Register, for getting legal opinion for take over. Other Banks will give such details, while take over. I know. SBI charging higher rate of interest at 12.55% whereas Saraswat Bank charges at 10.65%. SBI did not enhance the limit. Saraswat Bank giving additional limit of 5 cores.
08 December 2019
You will be having copy of such documents or get it from concerned authorities. EC and all latest one will be required. Obtain fresh one.
CAclubindia
