• • Existing and potential individuals, proprietorship firms, partnership concerns, Private and Public Limited companies (including take over from other Banks) established and engaged in Civil Construction / Govt. Projects/ engineering construction for minimum period of 2 years.
• • Sub-contractors (only 1st sub-contractor) will be eligible provided that Sub-contractor is existing Govt. approved contractor. He should possess valid Govt. Approved Certificate of certain level.
• • Govt. Tender / contract for respective work is allotted to approved Govt. Contractor and Detailed Registered Agreement between original tender holder / contract holder and sub-contractor is executed, for execution of allotted contract work, as per terms & conditions of original contract.

• Rate of Interest

Type of Facility

• Term Loan, Over Draft facility and Bank Guarantee (Non- fund based facility)

Limit

• Minimum: Rs.5.00 Lakhs
• Maximum: Rs.1000.00 Lakhs
• (Including Fund Base & Non Fund Base, Limit to be fixed on the basis of category of contractor and genuine need of the unit.)

Method of Assessment of Working Capital Limit

• The limit is to be considered as under:
• (I) 20 % of accepted projected gross sales/ income as per turnover method (Nayak Committee) OR as per 1st Method of lending whichever is higher as per guidelines.
• (II) 50% of Pending Work Orders from Govt. & Semi. Govt. Bodies.
• Whichever is lower above (I) or (II) Method.

Method of Assessment of Term Loan Limit

• 25 % margin to be considered on purchase of Plant and Machinery, equipment, furniture& fixtures.
• 30 % margin on acquisition of land and cost of construction of building/ Go-down.
• Need base finance as per the project cost, subject to economic viability of the same and generation of sufficient income to service the repayment obligations.

Repayment

• Maximum 84 months, including -06- to -12- months of moratorium period.

Security

• 1. Equitable mortgage of Land & Building / Premises.
• 2. Hypothecation of Plant & Machinery, Equipment, furniture & fixture, Vehicle acquired out of loan amount.
• 3. Personal guarantee of Promoter Directors in case of Limited Companies
• 4. Hypothecation stocks, receivables and other Chargeable current assets
• 5. Any other collateral by way of FDR, mortgage of properties in the personal name of the relatives of Promoters, etc. wherever applicable.

Insurance

• Comprehensive Insurance of Plant & Machinery, Equipment, Vehicle, furniture & fixtures & Goods covering stocks. Mortgage property and others movables. Bank's name should be included as a financer.

Credit Information Report

• Bank is authorized to make enquiries from any of the Credit Information Bureau and get the Credit Information Reports. Bank is also authorized to disclose from time to time any information relating to the loan to Credit Bureaus approved by Govt. of India or Reserve Bank of India without any notice to the borrower.