The defendant as sole proprietor, was carrying on business in Trading of Tiles, Granites and Wooden Furnitures under the name and style of M/s. Siddharth Tiles & Wooden Furnitures and she has approached the applicant bank for financial assistance to develop her business as cash credit facility, a sum of Rs.25,00,000/- and the defendant has agreed to adjust and repay the facility enjoyed by her under cash credit facility within a period of 12 months subject to renewal with accrued interest at the rate of 9.25% per annum compounded at monthly rest or at such rest and such interest being added to the balance outstanding on the last working day of every month and the said interest if unpaid will become part of the amount advanced (i.e. the principal amount as mentioned above) and bears interest at the same rate. The cash credit facility was sanctioned for a period of 12months subject to renewal. Further, the defendant agreed to pay higher and revised rate of interest on going MCLR rate of the applicant along with other commission, insurance premium, expenses, charges etc., Further, the applicant is entitled to recall any time the entire loan or balance thereof as the case may be, in case of default of adjustment and repayment within 12 months or violation of terms of sanction. The defendant has agreed to pay 2% additional interest in case of default. As security, evidence and cover, for the said cash credit facility a sum of Rs.25,00,000/-, the defendant has executed the following documents at Tirunelveli Town dated 22.01.2019 infavour of the applicant bank viz., Hypothecation Of Goods And Book Debts to Secure Cash Credit Facility , Letter Of Undertaking and Undertaking.
