- For any business-related activity (viz. manufacturing, services, trading etc.) comprising of but not limited to working capital requirement, acquisition/ construction/ expansion/ renovation/ modernization of existing Unit(s)/shop(s) or any other purpose falling within the scope of the said activities except for any speculative purpose or activity barred to be financed by the Bank.
- UDYAM and GST registered enterprises (Individuals/Proprietorship firm/Partnership firm/Private Limited Company/Public Limited Company/LLP) owned by women/majority stake owned by women (i.e. minimum 51 %) complying with the MSME guidelines (as defined under MSMED Act 2006 and revised time to time by GOI) are eligible to be financed under this scheme.
- Following entities are not eligible:
- • Company registered in India but more than 51% shareholding with NRI/OCI or Foreign National Entity.
- • HUF
- • Trust
- • Society
- • Partnership firm where any of the partners is HUF
- Note:
- • New Units can be accepted subject to satisfactory Market Opinion of the promoters and prospects of the project/ business proposed.
- • The applicant/promoter should preferably have working-skill / experience in the intended line of business.
- • Existing customers/borrowers of our Bank are also eligible under this scheme, subject to fulfilling the scheme criteria.
Limit
- Minimum: Rs. 5.00 Lakh
- Maximum: Rs. 750.00 Lakh
Method of Assessment of Working Capital
- (a) Up to Rs.5.00 crore
- • Higher of First Method or Turnover Method
- (b) Above Rs.5.00 crore
- • Second Method
Margin
| Facility | Particulars | Margin |
|---|---|---|
| Term Loan | Land & Building | 25% |
| Plant & Machinery (new) | 20% | |
| Working Capital | Stock and Receivables up to 90 days | 25% |
Repayment Period
- For Working Capital: -12- months, subject to review every year
- For Term Loan: Maximum -120- months, including -12- months of moratorium period
Security
- The exposure to be secured with minimum 75% hard security.
- Value of Hard Security to be calculated as under:
| Sr. No. | Nature of Property | Haircut to be taken/applied | Eligible Hard Security Coverage to be considered after Haircut |
|---|---|---|---|
| 1. | Residential Property | 20% of Market Value | 80% of Market Value |
| 2. | Commercial Property | 25% of Market Value | 75% of Market Value |
| 3. | Industrial Property | 40% of Market Value | 60% of Market Value |
| 4. | CGTMSE (Hybrid Model) | 5% of the coverage available | 95% of the coverage available |
| 5. | Liquid Security (FD/Life Insurance Policy/NSC/KVP) | Nil | 100% (value of securities to be considered as per extant guidelines of the bank) |
Age of building to be mortgaged
- The age of building should not exceed 25 years.
- Building more than 25 years old may be accepted as security, subject to approval of Regional Office, who will ascertain structural soundness of the building by obtaining opinion and certificate from approved engineer, about structural soundness of the building and its residual life. The residual life of the building should be at least 5 years more than the term of the loan / overdraft.
Valuation of Property
- In case of properties acquired within last -1- year, amount of Registered Sale Deed should be taken as value of property. (In such cases, fresh valuation may be dispensed with if the sanctioning authority is satisfied with Registered value).
- If the present Realisable value is higher than the Registered value (Registered within last 1 year) and if it requires to consider present Realisable value as value of property, for any reason, deviation to be obtained as per loan policy of the bank.
- Second Valuation Report from Bank/ Sponsor Bank empanelled valuers (other than issuer of first valuation report) shall be obtained in case the Realisable Value of the first Valuation Report exceeds Rs.1 crore for all types of properties situated at all types of centres.
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.
Other Terms & Conditions
- Sanctioning Authority to observe Financial ratios benchmark as per loan policy of the bank, updated from time to time.
- Loans up to Rs.200.00 Lacs will be covered under Credit Guarantee Fund Scheme for Micro & Small Enterprises (CGTMSE), in absence of collateral security, If applicable.
- In case of takeover of accounts in addition to the product norms, the norms prescribed in latest Loan policy should be complied with.
- During currency of credit facility(ies) if stake of women entrepreneur/s decreases in the entity/firm (i.e. below 51%), all concessions in the account to be withdrawn and ROI/charges applicable for general MSME advances to be applied from the date of change in stake from the date of such event till liquidation of the account or conversion to other scheme/general MSME advance.
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