Short term financing for Business operations:

  • Sanghamam will provide short term financing for a period not exceeding six months to the members towards additional working capital required to increase the stock of inventory mainly during peak business seasons or for special occasions.
  • This type of financing service will be provided only to existing business establishments having stability and standing.
  • Maximum amount of assistance under this category will be usually RS 2 lakhs. In exceptional cases it may go up to Rs 3 lakhs. The amount will be assessed on the basis of the cost of additional stock to be acquired. Maximum amount of assistance will not exceed 70% of the cost of the required additional stock.
  • Application shall accompany statement showing latest position of cost of stock held, monthly sales for the preceding six months, additional amount of monthly sales expected on utilizing the assistance during the pendency of the assistance.
  • Primary security will be pledge/ hypothecation of the asset of the business establishment with any collateral or other securities or additionally the personal surety of the member and two other members.
  • Along with each repayment installment the member shall have to pay proportionate share of gross profit on the additional monthly sales noted in the statement enclosed to the application.
  • The stock of the establishment shall be insured at cost price in the joint name of Sanghamam and the member concerned.