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image  Union Equipment Finance for Contractors

Union Equipment Finance for Contractors

1. Eligibility MSME Contractors (irrespective of constitution) availing Working capital (FB/NFB) limits from our Bank with Credit Rating upto CR-5 and being in the business for minimum 2 years.
2. Purpose For purchase of Commercial Equipment, Commercial Vehicle required in execution of contracts awarded to the contractor i.e. for captive use only.
3. Quantum of Finance Fresh sanction net of outstanding limit under the scheme should not exceed 20% of sanctioned WC limit or Rs.25 crore whichever is lower at any time.
4. Margin Minimum 5% on the cost of the equipment along with DSRA of 3 months else margin will be 10%.
5. Charges Processing Charges - 50% of the applicable charges. Others- Usual
6. Interest Rate EBLR + 0.50% to 1.50%
7. Security Hypothecation of equipment to be purchased.
NO extension of Collateral or CGTMSE is required.
8. Tenor 60 months (84 months on case to case) with maximum moratorium of 3 months within overall Tenor.

• For more details, Please contact our nearest branch.