Purpose
• CCH Limits to meet working capital requirements.
• Term Loan for purchase/construction/renovation of factory/ offices / shop / godown or for purchase of plant & machineries or other equipment.
Eligibility
• All women owned and managed MSMEs engaged in manufacture or production, processing or preservation of goods or enterprises engaged in providing or rendering of services or engaged in trading activity.
• Units with partner’s capital/ share capital in case of private/ public limited companies of minimum 51% with women shall be considered as units owned by women.
Quantum of Finance
• Minimum –Rs. 2.00 Lacs
• Maximum -Rs. 200.00 Lacs
Margin
• Minimum 5% margin for loans up to Rs 100.00 lakh
• Minimum 15% margin for loans above Rs 100.00 lakh
Charges
Nil
Facility
• Working Capital (Fund Based and / or Non Fund Based)
• Term Loan
Security
Prime:
• In case of working capital limit, exclusive charge on stock and book debts.
• In case of term loan, exclusive charge on assets created out of bank finance.
Collateral:
• In case the exposure is covered under CGTMSE, no collateral security is to be obtained.
• In cases where the exposure is not covered under CGTMSE, minimum collateral to be 25% of the loan value of any nature acceptable to the bank.
Repayment
Repayment will be in form of Equated Monthly Installment (EMI) with Maximum up to 60 months including moratorium of maximum 3 (three) months in case of HCV/HMV only, since additional time is required for body/trailer building. In case of LCV/LMV,1(one) month moratorium to be given.
Assessment
• Working Capital: Need based limit to be sanctioned as per eligibility assessed on the basis of prevailing method of assessment of working capital limit as detailed in the Loan Policy.
• Term Loan: Need based limit to be sanctioned based on cost of project and promoter’s margin, profitability projections acceptable to the Bank as per existing norms of the Bank.
Credits – Union Bank of India