Union Support is a composite Term Loan which can be utilised for purchase of shops, establishments, office equipment including vehicles etc. and meeting working capital requirements as per the assessment. It can be extended for purchase, renovation, repairs of the business premises, equipments also. However, working capital requirement should not exceed 50% of the total loan sanctioned.

• The aggregate finance will be a maximum of Rs.20 lacs for all purposes including working capital requirements.

20%.

Composite Term Loan.

• The Sanctioning Authority can consider/sanction of adhoc facility to the borrower at the time of initial sanction itself to the extent of a maximum 10% of the working capital limits sanctioned for meeting the emergent working capital needs, execution of orders etc.  The adhoc facility so allowed is for a period of 90 days and can be made available to the borrower upto a maximum of two times in a year.
• If the borrower is prompt and regular in repayment of the loan and he has repaid more than 50% of the working capital component of the loan, he is eligible for a "Top-up Loan" to the extent of repayment effected in the working capital component of the loan.

• Loan component for purchase of premises, furnishing, equipment etc. will be considered as per the Bank’s norms taking into account due diligence etc. 
• Working capital will be considered as per the turnover method or appropriate method as stipulated in the Loan Policy from time to time.
• Loans will be processed as per laid down procedure as prescribed in the Loan Policy with a deviation that minimum benchmark DSCR would be 1.50:1 and Current Ratio would be 1.10:1.
• Term Loan would be considered as per cash flows, projected profitability of the applicants/entrepreneurs/firms.

• Primary– Mortgage of shop premises purchased out of Bank's finance, if any.  Hypothecation of machinery/equipment/ stock/goods/vehicles.
• Collateral –Nil
• Personal Guarantee–

1. Third party personal guarantee - Nil
2. In case of partnership firms, all partners in their individual capacity should extend guarantee.

The loan except "Retail Trade" category will be covered under the guarantee cover of Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE). In case of Micro Enterprises i.e. where investment in equipment is less than Rs.2 lacs, the Guarantee Fee and Annual Service Fee payable by the borrower will be borne by the Bank.

INTEREST RATE :- (Base Rate - 10.50%   w.e.f. - 01-05-2012)

Base Rate + 3.00% i.e.:- 13.50%

To be repaid within a period of 3 to 5 years in line with the projected cash flow.

A. The credit facility is available to the qualified individuals with reasonable experience, proprietary firms/partnership firms by way of composite term loan for purchase of shops, office equipments including vehicles etc. and meeting working capital requirements. The loan can also be extended for purchase / renovation, repairs of the business premises, equipments also.

A. Yes. The Working Capital portion will be maximum up to 50% of the total loan sanctioned.

A. The aggregate finance is limited up to Rs.20.00 lac for all purposes including working capital facilities.

A. The margin required is 20% under the scheme.

A. Yes. The sanctioning authority can consider adhoc facility at the time of initial sanction of loan to the extent of 10% of working capital limits sanctioned for meeting the urgent working capital needs, execution of orders etc. Such adhoc facility is allowed for a period of 90 days and can be availed maximum two times in a year.

A. No Collateral required under the scheme. The loan is covered under Credit Guarantee Scheme of CGTMSE except the loans granted under 'Retail Trade' category.

A. The loan to be repaid within a period of 3 to 5 years in line with the projected cash flow.