Purpose
Financing under the scheme is for Setting up of oxygen plant with power back up (for purchase of Generator set/ Inverter) in the hospital for medical use & To finance units engaged in manufacturing of liquid oxygen, oxygen cylinders etc.
Eligibility
Manufacturers and suppliers of medical oxygen, Oxygen Cylinders. Existing Hospitals/ Nursing Homes (Excluding account eligible under ECLGS 4.0/ UGECL 4.0).
Facility
Term Loan and / or Non-Fund Based [Letter of Credit- CAPEX].
Quantum of Finance
Maximum: Rs 2.00 Crore.
Assessment
- For TL facility & NFB: As per norms prescribed by Bank.
- Details of Tie-up arrangement for supply of medical oxygen with hospitals etc (in case of oxygen manufacturers and suppliers) to be obtained for ensuring the cash flows match with the projections given by the loan applicant(s).
Margin
| Term Loan | For setting up of Oxygen Plant:In case of existing hospital customers – NIL MarginIn case of New to Bank Customers/Others – 15% margin |
| NFB (LC) | 15%(Cash/ FDR Margin) |
Charges
Processing Charges & Other Charges – NIL
Rate of Interest
i) MSME Borrower: EBLR + 1.35% p.a (8.15% at present)
ii) Others: 1YMCLR + 0.95% p.a (8.15% at present)
CGTMSE guarantee fee under this scheme shall be borne by the Bank.
Security
Primary Security – Assets created out of bank finance.Collateral – 25% SARFAESI compliant tangible securities unless covered under CGTMSE.
Repayment
Term Loan: Maximum Door to Door repayment period shall be 5 years including moratorium period not exceeding 6 months.
Credits – Union Bank of India