To provide Bank Credit to MSME at liberalized terms towards Working Capital and Term Loan for acquiring fixed assets.
All Type of Fund Based & Non-Fund Based Limits
- Single Borrower: Rs.25 Crore (maximum)
- Group Borrowers: Rs.50 Crore (maximum)
All MSME units run by Individuals / HUFs, Proprietary Concerns,Partnership Firms, Limited Companies
Margin :
- Working Capital – 20% to 30%
- Term Loan – 25% to 50%
Repayment :
- Working Capital: One Year (renewable)
- Term Loan: Maximum 7 Years excluding Holiday Period of 12 months / 18 months in case of construction.
Security :
- Primary :
- Working Capital Limits: Stock & Receivables.
- Term Loan : Assets acquired & created out of Loan.
- Collateral :
- No Collateral for loans upto Rs.10.00 lakh (Covered by Credit Guarantee Scheme (CGS) of CGTMSE or under Credit Guarantee Fund for Micro Units (CGFMU) of NCGTC)
- No Collateral Security for Loans upto Rs.200 lakh Sanctioned under CGTMSE Scheme.
- Tangible and Marketable Collateral Security of at least 50% of the Limit Sanctioned
Interest :
Fees & Charges
- Term Loan: - 1.00% of the Limit sanctioned + taxes
- Working Capital: 0.50% of the Limit sanctioned + taxes applicable
Prepayment Penalty in the case of takeover of credit Limits by another Bank: -
In case of Term Loan, prepayment Penalty of 2.00% of the outstanding amount (plus GST) at the time of takeover by another Bank is to be levied.
In case of Working Capital Limits, prepayment Penalty of 1% of the Limit (plus GST) to be levied at the time of takeover by another Bank.
No Pre-Payment Charges shall be levied where the credit Limits are closed by the borrower from own source of funds.