|
Purpose
|
To
provide hassle free working capital / contingency finance to MSME
borrowers
who are willing to provide mortgage of property of adequate
value.
|
|
Nature
of Facility
|
Cash
Credit / Overdraft / Term Loan / Demand Loan
|
|
Eligibility
|
Existing
customers.
New
connections / customers, including take over of borrowers of
other banks.
First
generation entrepreneurs as well as promoters of existing
lunits for the purpose of setting up of new unit.
|
|
Quantum
of Loan
|
65%
of realizable value of security:
Subject
to a maximum
|
For
Micro Enterprises
|
:
|
Rs.10.00
lacs
|
|
For
Small Enterprises
|
:
|
Rs.1.50
crores
|
|
For
Medium Enterprises
|
:
|
Rs.3.00
crores
|
|
|
Assessment
of Limits
|
Limits
Upto Rs. 10.00 lacs: 50%
of the realizable value of the property.
Limits
Above Rs.10.00 lacs:
65%
of the realizable value of the property (or) 20% of the
projected annual turnover (40% for conventional Industries),
which ever is lower.
|
|
Repayment
|
CC
/ OD – On demand or in one bullet.
However, the interest should be serviced within 15 days
after charging.
Term
Loan – Maximum repayment period 60 months (including
moratorium)
Demand
Loan – Maximum repayment period 36 months.
|
|
Security
|
Primary:
Hypothecation of stocks and receivables and / or assets
acquired by Bank finance.
Collateral:
Tangible
collateral security (realizable value of the property) of
minimum of 153% of loan in the form of equitable/ registered
mortgage of land/ building.
|
|
Validity
|
Sanctioned
limit will be valid for a period of 3 years. 1.50% of the
limit should be serviced every month.
|
|
Interest
Rate
|
BPLR
+ 0.50%
|
