Eligible borrowers

• All units engaged in trading activity irrespective of constitution and classified under MSE (Service Enterprise) will be eligible under the scheme.
• The unit having good market standing as per due diligence report, which is engaged in business activity for minimum one financial year and income tax returns, if applicable have been submitted thereof.
• Credit Rating of the account should be between CR-1 to CR-4 to remain eligible under the scheme.

Purpose of the advance

• To fund need based Working Capital requirement for trading business.
• Term Loan requirement for own business use

Quantum of finance

Maximum upto Rs.10.00 crore

Margin

Working Capital/ Term Loan: 20%

Assessment of limits

As per norms prescribed in credit policy of the Bank.

Rate of interest

• For limits upto Rs.5.00 crore:
  
  

• For limits above Rs.5.00 crore having external rating upto BBB as under:

• For limits above Rs.5.00 crore having external rating of BB and unrated as under:

Above rates are applicable to working capital loans only. Term Loans will have credit risk premium, in addition to the above mentioned rates.

Security

Primary: All assets created out of Bank’s finance shall be charged in favor of Bank. 

Collateral

• Mortgage (Equitable /Registered) of immovable property (land/building) to the extent of minimum 100% of loan amount.
• Liquid securities i.e. NSCs, KVPs, Life Insurance Policies and Deposits with our bank (only surrender value) may be accepted in lieu of landed security.
• In case of any existing Term Loan secured by Landed property, the value of property in excess over 133% of the total outstanding in Term Loan account may be considered as eligible collateral for the scheme.

1.50 times weightage for clearly defined liquid securities may be considered for the purpose of pricing only.

Repayment

• Working Capital: On Demand.
• Term Loan: Maximum Door to Door repayment shall be 7 years including moratorium period not exceeding 6 months.

Point of Sale terminal

• Waiver of Rentals for a single POS terminal provided as per need based requirement for 12 months from the date of 1st installation.
  
  WCDL limit may be fixed at 6 times of average monthly turnover on our bank’s POS, repayable in 12 monthly instalments, ROI @ MCLR+0.50%, within the overall limits sanctioned.