Target Group
All Micro, Small & Medium Enterprises (MSME) as per extant definition of Government of India.
· All existing MSME clients with satisfactory promoter/s’ track record, group affiliation and viable project/s, with or without credit facilities.
· Should have maintained satisfactorily operated account at least for the last one year.
· Applicant should have Road Permit issued by Competent Authority.
Purpose
Financial Assistance for purchase of new vehicle (LMV /HMV) for existing MSME units meant for transport of Men and Material (This includes Car, Tempos, Mini Van, Trucks etc.)
Types of Facility
Term Loan
Loan Amount
Maximum- Rs.2.00 crores.
Margin (Promoter’s contribution)
15%
Security
Primary Security: Hypothecation of vehicles purchased out of Term Loan.
Collateral Security:
· CGTMSE coverage for eligible accounts.
- For accounts other than CGTMSE – Immovable Properties with a minimum RSV of 50 %.
· Guarantor/s wherever applicable.
Repayment
· In case of LMV : 60 EMIs
· In case of HMV: Maximum 60 months (Door to door) Principal in equal Monthly Instalments and Monthly interest is to be serviced then and there
Processing & other charges
Maximum of Rs.5000/- in case of LMV & Rs.10000/- in case of HMV
Credits – Indian Bank