Purpose
For purchase of Commercial Equipment, Commercial Vehicle required in execution of contracts awarded to the contractor i.e. for captive use only.
Eligibility
MSME Contractors (irrespective of constitution) availing Working capital (FB/NFB) limits from our Bank with Credit Rating upto CR-5 and being in the business for minimum 2 years.
Quantum of Finance
Fresh sanction net of outstanding limit under the scheme should not exceed 20% of sanctioned WC limit or Rs.25 crore whichever is lower at any time.
Margin
Minimum 5% on the cost of the equipment along with DSRA of 3 months else margin will be 10%.
Charges
Processing Charges – 50% of the applicable charges. Others- Usual
Rate of Interest
EBLR + 0.50% to 1.50%
Security
Hypothecation of equipment to be purchased.
NO extension of Collateral or CGTMSE is required.
Tenor
60 months (84 months on case to case) with maximum moratorium of 3 months within overall Tenor.
Credits – Union Bank of India