WC Digital Enhancement

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Digital Banking

Self Service Banking

WC Digital Enhancement

Particulars	Details
Product Name	Digital Enhancement of Working Capital Limit
Purpose	Need based Renewal cum Enhancement of Working Capital Limit to eligible MSEs borrowers for meeting their Working Capital requirements. (Only for income generating business activities).
Eligibility Criteria	All ETB (Existing to Bank) Micro & Small enterprises engaged in Manufacturing / Service / Trading Activities/ Allied Agriculture Activities who are having Working Capital facility and fulfilling below mentioned criteria will be eligible under the scheme: i- Borrower/Promoter’s age: 21-75 Years. ii- Sole Banking with Union Bank of India. iii- Entity should have valid Udyam Registration Number (URN) iv- Borrower/Promoters should have valid Aadhar & PAN. v- Borrower / Promoter and Sister Concern name should not appear in any of the defaulter lists/CFR. vi- Constitution other than Individual / Sole proprietorship / Partnership /Company/ LLP are not eligible. vii- Overdraft facilities are not eligible.
Facility	Fund based Working Capital (Cash Credit)
Quantum	Working Capital Limits up to Rs 10.00 lakhs (including Proposed Enhancement).
Assessment	In case of Working Capital, assessment will be done by Turnover method.
Margin	20% (minimum)
Repayment	Running account repayable on demand (interest to be served as & when due)
Primary Security	Hypothecation of Stock & Book Debts.
Collateral Security	1. Existing Collateral Security (if any) will continue. 2. If no Collateral Security; loan is to be covered under CGTMSE scheme.
Credit Scoring	As per extant guidelines.
Guarantee	1. Personal Guarantee of all borrower(s), promoter director, proprietor, partners of the firm. 2. Existing Guarantee should continue. However, if the facility is covered by CGTMSE no third-party guarantee is required.
Documentation & Stamp duty	Manual execution of Documents including collection of Stamp Duty as per extant guidelines.
Interest Rate	As per the prevailing rate of interest/guidelines.
Processing Charges	As per extant guidelines.
Documentation charges	As per extant guidelines.
Convenience fee	₹ 1000 plus GST (This fee will be collected upfront)
Renewal of Limit	Subsequent Renewal to be done annually as per extant guidelines.
Insurance	Comprehensive insurance of all the securities inclusive of Bank’s clause is to be obtained for 110% of assets value by branch manually.
Other Terms and Conditions	The Periodicity of Submission of Stock Statement and Book Debts is as per the existing terms and Conditions of the facility.
Classification of account as NPA	The extant prudential norms on income recognition, asset classification and provisioning will apply. Charging of interest is to be done uniformly as is applicable to MSE advances.