S.No.

Parameter

Scheme Guidelines

1.

Eligible borrowers

1. All MSME Units (New & Existing) engaged in manufacturing activity or service activity other than trading units irrespective of constitution.
2. Credit rating of account should be CR-1/UBC-1 to CR-3/UBC-3 or equivalent. Further, External credit rating, wherever applicable should not be below BBB.
3. The unit having good market standing, which is engaged in business activity for minimum one financial year and income tax returns have been submitted thereof.

2.

Purpose of the advance

1. To meet need based working capital (Fund Based & Non-Fund Based) requirement for Business Activity.
2. Term Loan for purchase/ construction / renovation of factory / offices / shop / godown / plant & machinery / equipment etc for business activity.

3.

Quantum of finance

Minimum: Above Rs.1.00crore
Maximum: Rs.25.00crore.

4.

Margin

20% for WC facility and Term loan.

5.

Assessment of limits

As per norms enumerated in credit policy of the Bank.

6.

Rate of interest

• 1% less than the applicable rate for MSME subject to minimum applicable MCLR.
• 1.25% less than the applicable rate for MSME subject to minimum applicable MCLR on compliance of any of the following conditions
  • External credit rating of BBB and above
  • 100% and above collateral coverage

7.

Security

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

1. Mortgage (Equitable /Registered) of immovable property (land/building) to an extent of minimum 50% of loan amount.
2. Liquid securities i.e. NSC, KVP, Life Insurance Policy & Deposit of our Bank (only surrender value) may be accepted in lieu of landed security.
3. 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.

8.

Repayment

As per extant norms prescribed in Loan Policy of the Bank.

9.

Standby limits

Standby limit may be allowed in the account as per the norms prescribed for Union SME Plus Scheme