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1 |
Applicant |
a) Proprietorship concern b) Registered Partnership Firm c) LLP d) Private/Public Limited Company. e) Service Providers, Professionals. (having UDYAM Registration Number) (Builders & Developers with MSME/Udyam Registration will not be eligible under the scheme) |
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2 |
Purpose |
Fund Based Limits: Term Loan for factory Land and Building, commercial premises/ shops/ Plant & Machinery/ equipment’s, commercial vehicle, Loan for Working Capital i.e. Cash Credit, Project Loan, Mortgage Loan against property etc. Non Fund Based Limits i.e. Letter of Credit, Bank Guarantee etc. can also be sanctioned as per the business need |
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3 |
Loan Limit |
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4 |
Margin for Loan Amount |
For Term Loan & Cash Credit facility: a) Upto Rs.4.50 Lakhs - No margin b) Above Rs.4.50 Lakhs - 25% minimum |
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5 |
Rate of Interest
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Rate of Interest for MSME Loans & Advances for Aggregate limits per Borrower up to Rs.50.00 lakhs will be 10.10%.
Rate of Interest for MSME Loans & Advances above Rs.50.00 Lakhs will be as per our existing Credit Rating Exercise and ROI will be ranging from 8.85% to 12.35% (AAA to D Ratings) Clean Cash Credit to MSME:- 13.30% (Without Single Premium Policy) 12.80% (With Single Premium Policy) |
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6 |
Repayment Tenure |
a) For Cash Credit Limit/Overdraft Limit – 12 months. b) For New Term Loans, – 5 to 15 years including moratorium period. c) In case of takeover of Term Loan/Mortgage Loan from other banks, existing repayment tenure will be continued without any change. |
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7 |
Security |
Collateral security can be insisted in the form of immovable property or liquid security in the form of FDR, Surrender value of LIC policies etc., Collateral Security Coverage Ratio 0.50 Collateral Security not to be insisted for Loans up to Rs.10.00 lakhs (Excluding Cash Credit Limits) Real Asset Coverage Ratio 0.75 For Clean Cash Credit limits: a) Limits above Rs.2.00 lakhs to Rs. 3.00 lakhs, 20% collateral security b) Limits above Rs.3.00 lakhs upto Rs.4.50 lakhs, 30% collateral security |
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8 |
Documents Required of Borrower |
1. KYC of Company/Firm along with its directors/partners etc. 2. Udyam Registration Certificate, GST Certificate & Returns for last 1 year 3. Financials of Company/Firm along with its directors/partners etc. for last 3 financials years & Projected financials, if required 4. Sanction Letter of all existing loan account & statement of loan from the date of disbursement to till date 5. Bank Account statement of the company/firm for last 1 year 6. In case of takeover of Cash Credit limit, last 6 months Stock Statement + Debtors & Creditors list 7. Property documents |
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9 |
Guarantors |
One Guarantor for limits up to Rs 50.00 lakhs if loan & advance is secured by Immovable Property with ratio of 1:1, Otherwise Two Guarantors |
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10 |
Processing Charges |
a) In case of takeover of accounts from other banks, No Processing Charges will be recovered. b) For other applicants/borrowers, 0.40% + GST |