||For the working capital/any business purpose requirements of the business concern.
And also, for the construction of shop in the pre-owned land or for purchase of ready built shop/ commercial space for business
- Retail Traders/Wholesale Traders
- Professional and self employed
- Micro, Small & Medium Enterprises Service/ Manufacturing concerns
(Borrowers satisfactorily engaged in trading/ business activity for a period atleast 1 year prior to seeking credit under the scheme and having earned cash profit during the period )
- Newly Established Entity /Venture are also eligible for credit facilities under the scheme based on merits and on a case to case basis.
- Credit facility against agricultural property is strictly not permitted. Credit facility shall not be permitted against security of immovable property wherein Educational/ Religious Institutions are located. Vacant land may preferably be not taken as security under the scheme.
- The property of following close relatives may be considered subject to becoming of their co-borrower in the facility
|Quantum of Finance
||Minimum: Rs 5 lacs,
Maximum: Rs 500 lacs. (For purchase/construction of shop maximum finance is Rs 200 lacs)
(With deviations maximum finance can be upto Rs 1000 lacs)
|Quantum of Finance is subject to
- MPBF can be upto 20% of the projected turnover subject to the condition that projected turnover shall not exceed 25% annual turnover of the previous year. Or, Maximum Permissible Bank Finance can be upto 25% of the actual turnover.
- MPBF is subject to maximum of 65% of realizable value of immovable property.
- Security in the form of NSCs (Margin 25%) /Bank’s Own Deposits (Margin 10%) /LIC Policies (Margin 10%) may be taken to supplement the overall security requirements.
|Rate of Interest
||Term Loan:Repayable in maximum upto 10 years, including moratorium period of maximum of 12 M
Working Capital Term Loan: Repayable in maximum upto 5 years, subject to annual review.
Overdraft Facility: Repayable on demand. Interest shall be recovered immediately when due.
||Personal guarantee of owners of property, spouse/ major son of prop., directors/partners
|Concession in ROI for MSMEs Only
The maximum concessions in RoI under any of the Scheme shall not exceed 1.25% in any case.
- Concession of 1.00% in RoI for cases, where realizable value of security offered as primary security to the credit facility is available to the tune of 200% or more.
- Concession of 0.25% in RoI for cases, where external credit rating is 1 to 4 by SMERA, ICRA, ONICRA or CRISIL
- Concession of 0.25% in RoI if account is classified under Priority Sector Advances.
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