Target Group
Micro, Small & Medium Enterprises (Manufacturing & Services Sector)
Purpose
Working Capital Requirements, Purchase of Fixed Assets, Construction of Building etc.
Nature of Facility
- Working capital in the form of Secured Overdraft / Open Cash Credit / Packing Credit / Bill purchase, etc.
- Term Loan
- Non Fund Based facilities: Letter of Credit / Bank Guarantee
Loan Amount
Minimum Exposure : Above Rs.10.00 Lacs
Maximum Exposure : No Ceiling
Margin (Promoter’s contribution)
- 25% on Stocks and Book Debts
- 25% on Plant and Machinery in case of new machines
- 50% on Plant and Machinery in case of second hand machines
- *30% on Building construction estimate
- (* subject to conditions)
Security
Primary Security:
Secured OD : Mortgage of immovable property
OCC : Hypothecation of Stocks and Book Debts
TL – Machine / Bldg – Hypothecation / Mortgage of assets created out of the term loan.
LC / BG / IBN / FBN – As per extant guidelines.
Collateral Security:
Secured OD : Hypothecation of stocks & book debts.
Others : MORTGAGE of properties.
Repayment
Term Loans – Maximum repayment period of 15 years.
Credits – Indian Bank