S. No

Parameter

Scheme Guidelines

1. 

Objective

To finance the textile units (Manufacturing / Trading)

2. 

Eligibility

a. All business units engaged / proposed to be engaged in manufacturing/trading of Textiles – Both New & Existing clients will be eligible under the scheme.

b. MSME Units irrespective of the constitution i.e. Individuals, Proprietorship, Partnership Concern (including LLP), Limited Companies, Society, Trust, Association, Private & Public Ltd Cos, CoOperative Societies registered under applicable law.

c. Unit should have all the applicable statutory approval /NOCs from the respective department etc.

3. 

Facility/

Purpose

a. To meet need based working capital (Fund Based & Non-Fund Based) requirements for Business Activity.

b. 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 are eligible.

• Any other purpose whereby asset is created out of Bank’s finance for the purpose of running the business.

c. Takeover of existing WC/ Term Loans from other banks.

4. 

Quantum

Min : Above Rs.25.00 Lakhs

Max : No Ceiling subject to classification under MSME.

5. 

Security

Primary: For Working Capital: Hypothecation of stocks, Book Debts and charge over current assets of the unit.

For Term Loan: Charges of all the assets created out of TL.

For BG/LC: Cash Margin, Counter Guarantee of the applicant and extension of Charge on entire current assets, if available of the unit.

Collateral Coverage for Working Capital, Term Loan (TL) and BG/LC:

a. Eligible accounts may be covered under CGTMSE without collateral as per extant guidelines. CGTMSE fee including incidental charges shall be borne by the borrower.

b. In case accounts are not eligible / covered under CGTMSE, Collateral Security coverage for CC/TL/BG/LC shall be minimum 50% for manufacturing units & 100% for trading units of the exposure under the scheme. Hybrid security coverage permitted under CGTMSE is also acceptable subject to maintaining stipulated collateral for exposure not covered under credit guarantee scheme.

c. Social Infrastructure viz., Hospitals, Educational Institutions etc., shall not be considered as collateral.