MSME Loan

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Micro, Small & Medium Enterprise Loan :

  1. Purpose of the Loan : For any purpose for small scale industry , micro enterprises , small enterprises, medium enterprises .
  2. Target Groups: – Any individuals/ Partners/ Company under priority sectors.
  3. Age of Borrower : 18 to 60 Years.
  4. Type of Advance : Term Loan/ Cash Credit.
  5. Quantum Of Advance : For Micro Enterprise upto ₹25.00 Lakhs, for Small Enterprise above ₹25.00 Lakhs upto individual/ Group Exposury , For medium Enterprise above ₹5.00 Cores .
  6. Margin of the Loan : Minimum 20% .
  7. Rate of Interest : @12% P.A. for Term Loan and @11.50% P.A. for Cash Credit
  8. Repayment : Maximum 84 nos of EMI with gestation period of 3 to 6 months . For cash Credit Loan Daily Sales proceeds will be deposited and repayment will be on demand.
  9. Primary Security: Hypothecation of Stock and Goods/ Plant and Machinery with insurance @1.67 times value of the stock/ Limit whichever is higher , with approve insurance company of the Bank .
  10. Additional Security : @15% of liquid security in the name of applicant or Guarantors. 5% liquid security if it is backed by mortgage of land and building.
  11. One/Two personal Guarantee having sufficient net worth.
  12. Equitable mortgage of Landed property valued @125% of the loan amount for loan above ₹10.00 Lakhs. However loan upto ₹25.00 Lakhs mortgage can be waived if liquid security offered @40% of the loan amount.
  13. Linking Share : @2.50% of the loan amount.
  14. Process Fees : @ 1% of the loan amount.
  15. Disbursement : Disbarment should be made through account of the borrower to the Supplier .
  16. Loan sponsored under DIC and Central and State Govt. sponsored proposal with subsidy may preferred .
  17. N.B.: Medium Enterprise loans cannot be considered by our Bank since individual/ Group exposer not permitted .
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