Purpose |
To
meet expenditure such as:
• Repairs to plant and machinery
• Payments to labour
• Tax payments
Additional purchases of raw materials for execution of Bulk Order |
Eligibility |
-
The
scheme is applicable to existing MSME borrowers whose
outstandings have been classified as standard assets as on the
31st March, for the past two consecutive years.
-
For
limits above Rs.25 lacs, the threshold credit rating should
not be less than SBH3
-
The
facility may also be extended to new borrowers at the
discretion of the sanctioning authority.
-
Proposals
to extend the facility to existing borrowers who are not
covered under item No.(i) will have to be approved by the
sanctioning authority or by the controlling authority in case,
the sanctioning authority happens to be below the rank of
Assistant General Manager.
Branches
should ensure that the scheme is extended to customers enjoying
the high standing and integrity in the market. |
| Nature of Facility |
Clean
Cash Credit Limit |
| Quantum of Loan |
20%
of the aggregate cash credit working capital limits (i.e. limits
against stocks and bills put together) sanctioned to the unit
subject to a maximum of Rs.25.00 lacs for Micro and
Small Enterprises and Rs.50.00 lacs to Medium Enterprises.
|
| Repayment |
Each
amount of withdrawal is repayable within four months and there
should be gap of 15 days between the date of complete repayment of
outstandings and the next withdrawal. The borrowers are expected
to assess their requirements and draw the necessary amount for
credit to the cash credit account to avoid running two accounts
for operation. |
Amount of finance |
No
primary security is necessary. The available security by way of
collateral to the other sanctioned limits will be extended to
cover the SME Credit plus limit. Additional collateral security
where necessary may be obtained but not compulsory.
|
