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| MSME Margin |
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| Margin / Collateral Requirements |
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- Margin Requirements
- Normal margin for CC limit remains 25% for Stocks and 40% for Book Debts limit. On Bills limit margin varies from nil to 10%.
- With a view to support the MSE sector relaxations in margins to deserving viable MSEs may be considered upto 20% for stocks, upto 30% for Book Debts and upto nil extent in case of Bills facilities
- Collateral Requirements:
- Credit assistance to MSEs upto Rs.5 lakhs is extended without any collateral securities
- Collateral free financial assistance above Rs.5 lakhs and upto Rs.100.00 lakhs is extended to Micro & Small Enterprises as per operational guidelines
- All the eligible collateral free loans extended to Micro & Small Enterprises borrowers are covered under Credit Guarantee Scheme of Credit guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
- For financial assistance above Rs.100 lakhs to Micro & Small Enterprises, collateral security requirement is decided on case to case basis on individual merits considering various factors including risks related to the activity after conducting due diligence about the promoters
- In case of mid corporates engaged in manufacturing with investment in plant & machinery above Rs.5 crores upto Rs.10 crores and requirement ranging between Rs.5 crores to Rs.25 crores, financial assistance is considered under a special scheme UNION HIGH PRIDE by reducing the collateral coverage even upto 20% of the Bank’s exposure. In exceptional cases this coverage can be further relaxed provided proper justification for the same persists
- In other cases the quantum of collateral coverage is decided based on the activity and risk involved with the activity / promoters
- However quantum of collateral is not a hurdle while extending financial assistance to MSMEs in general
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| Product Testimonial |
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| Quick Links |
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 | | Link To: Union High Pride |
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