Union SME plus is a credit product tailored to meet the temporary short term working capital requirements of Micro, Small & Medium Enterprises (MSME) sectors.

You can avail the loan for the following purposes:

• All kind of genuine credit needs of temporary nature to tide over liquidity crunch
• Repayment of high cost short term borrowings
• Meeting Working Capital needs arising out of bunching of orders
• Temporary delay in shipment / realization of book debts
• Sudden increase in raw material cost
• Mismatch in Cash Flow

• Borrowal Accounts belonging to Micro, Small and Medium Enterprises Sector
• Earned profits consistently for the preceding three years and who have not defaulted in any of their commitments
• Borrowers with existing overall Fund-Based credit facilities up to Rs.10 cr

• Adhoc Working Capital limit up to 20% of the existing overall Fund based credit facilities in respect of unit having over-all fund based credit facilities up to Rs. 10 cr.

Minimum - 25%.

Demand Loan.

1. Adhoc Working Capital or Non Fund Based limit will be sanctioned while renewing/reviewing the total limits of the existing borrower
2. This facility will not be available for EPCG, DPGL and for L/C & L/G if the period of L/C, L/G is more than 90 days
3. The limits sanctioned will be in the nature of Demand Loan, repayable within one year with a moratorium of six months
4. During the moratorium period, the borrower has to pay the interest charged from time to time
5. It will be backed by adequate Drawing Power.
6. For new borrowers, this limit will be available only after regular renewal of the limit

Prime - Extension of Bank’s charge over current and fixed assets

Collateral- Extension of charge over existing collateral

Personal guaranteeof proprietor/ partners/ directors

LINK.

The limits sanctioned will be repayable within one year with a moratorium of six months During the moratorium period, the borrower has to pay the interest charged from time to time.

A. It is a credit product tailored to meet the temporary short term working capital requirements of Micro, Small & Medium Enterprises (MSME) sectors.

A. Under the scheme, demand loan is made available to MSME borrowers who have earned profits consistently for the preceding three years, not defaulted in any of their commitments and having overall Fund-based credit facilities up to Rs.10.00 crores.

A. The loan is granted for all kind of genuine credit needs of temporary nature to tide over liquidity crunch, repayment of high cost short term borrowings, meeting W.C. needs arising out of bunching of orders, delay in shipment/realization of receivables, sudden increase in cost of raw materials, mismatch in cash Flows etc.

A. Maximum finance by way of demand loan up to 20% of the existing overall Fund-based credit facilities are allowed under the scheme.

A. Yes. The minimum margin requirement is 25%.

A. The interest rate will be 2% above the applicable rate of interest.

A. The loan amount will be repaid within one year with a moratorium period of six months. However the borrower has to pay the interest charged from time to time during the moratorium period.