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image  Union MSME Suvidha

Union MSME Suvidha

1. Eligibility All units engaged in the Manufacturing/ Services/ Trading activity, eligible to be classified under MSME.
2. Purpose • To meet need based working capital (Fund Based & Non-Fund Based) requirement for Business Activity.
• Term Loan for own business use, which is detailed as under:
   • Purchase/ Construction / Renovation of Business Premises, Factory / Offices / Shop / Godown / Plant & Machinery / Equipment etc for business activities areeligible.
   • Purchase of equipment like Computers, air-conditioner, furniture & fixtures and other fixed assets like commercial vehicles forbusiness.
   • Any other purpose whereby asset is created out of Bank’s finance for the purpose of running the business.
3. Quantum of Finance Min: Above Rs.10 Lakh
Max: Up to Rs.50 Crore with TL restricted upto Rs. 10.00 crores in case of Trade accounts.
Also, exposure below Rs. 10.00 lakhs sanctioned previously may be continued till the closure of limit / loan.
4. Margin
FBWC 20% [Stock (excluding dead stock) & book debtsaged up to 90 days]
NFBWC 25% (Cash/ FDR Margin)
Term Loan Plant & Machinery / Equipment: 25%
5. Facility Term Loan and / or Working Capital (Fund Based and Non-Fund Based)
Non fund based limits towards procurement of raw material must beincluded under MPBF.
6. Repayment Working Capital: On Demand.
Term Loan: As per Loan Policy, the maximum period for repayment of term loan shall normally be 84 months (including moratorium), except for projects with longer gestation periods, infrastructure projects etc. Hence, the maximum door to door repayment period shall be limited to 7 years including maximum moratorium period of 12 months.
Interest to be recovered during the moratorium period.
7. Assessment For WC facility:
• Incase of MSE borrower,limit up to Rs.5.00 crores to be assessed as per turnover method,
• In case of Non MSE borrower, limit upto Rs. 1.00 crores to be assessed as per turnover method.
• Apart from this, limit to be assessed based on FBF method.For TL facility: As per norms prescribed in Loan Policy of the Bank.

• For more details, Please contact our nearest branch.