Target Group
Individual / Proprietor / Registered Partnership / Limited Liability Partnership (LLP) / Pvt & Public Limited Companies under Micro, Small & Medium Enterprises (MSME) as per extant definition of Government of India
Well established contractors (civil, mechanical, electrical etc.), performing contracts for Central / State Govt. / reputed PSUs / reputed Corporates.
Contractors / Sub-Contractors should be in the line of business for 3 years & has earned continuous profit for last 2 years.
Sub-Contractors are eligible for finance
GST registration of the borrower is mandatory, wherever applicable.
Applicant Should have certificate under MSME Act, 2006
Purpose
To finance contractors carrying out work orders from various Central / State Govt departments /reputed PSUs/ reputed Corporates covers all aspects like purchase of machinery, working capital requirements etc.
Types of Facility
Fund Based: Secured OD / OCC / Term Loan / BP
Non-Fund Based: Bank Guarantee / LC
Loan Amount
Minimum Loan Amount: Above Rs. 10 lakh per borrower
Maximum: Rs. 10 Crores per borrower (FB+NFB)
Rs. 20 Crores per group (FB+NFB)
Margin (Promoter’s contribution)
50% on EM property for Secured OD
20% on Stock and Book Debts
20% on equipments / Term Loan
15% for Bill Finance.
10% against Guarantees / LC
Security
Primary Security:
o SOD – EM of property (Min. 200% of the limit).
o OCC – Stock and Book Debts
o MTL – Hypothecation of equipments purchased by availing MTL.
o BG- Counter guarantee by applicant.
o Cash margin by way of FDR. Portion uncovered by cash margin should be covered with value of security.
o LC- Cash margin by way of FDR and Hyp. of stocks procured against LC.
o BP- Undertaking from the debtors to make payment directly to the Bank.
Collateral Security:
In case of OCC, 100% collateral security coverage in the form of immovable property / liquid security to be obtained.
Repayment
Term Loan shall be repayable in maximum of 84 months, including holiday period.
Processing & other charges
All Charges are at Card Rate
Credits – Indian Bank