MSME & Project Loans

Eligibility

A business unit with valid permissions and licenses

Limit

• Working Capital: limit will be calculated on the basis of calculation of MPBF and bank policy
• Maximum up to 75% of project cost/asset cost subject to satisfaction of DSCR and other conditions

Repayment

• Working Capital (CC): Yearly review/renewal of limit
• Term Loan: Generally for 7 years (Balance repayment period in existing bank incase of take over)

Margin

Minimum 25%

Security

• Primary Security:
  • Working Capital: Hypothecation of inventory and book debts
  • Term Loan: Asset that is being created through our finance
  • The value of primary security should be atleast 120% or more of the loan amount
• Collateral Security:
  • Working Capital/Term Loan: Registered mortgage of NA property/lien deposits whether in the name of borrower or guarantors or assignment of insurance policies in the name of borrower
  • The value of collateral security should be atleast 50% or more of the loan amount

Interest Rate

• Starting from our Base Rate of 10.75%, based on CRR rating of the unit ( a reduction of 0.50% in applicable ROI if in case the collateral security provided is 100% or more).

Fees

• For Working Capital:
  • Processing Charges: 0.35% + GST
  • Documentation Charges: 0.20% + GST, maximum Rs 50,000/-
  • Inspection/Supervision charges: 0.25% + GST, maximum Rs 10,000/-
• For Term Loan:
  • Processing Charges: 0.85% + GST
  • Documentation Charges: 0.20% + GST, maximum Rs 50,000/-
  • Inspection/Supervision charges: 0.25% + GST, maximum Rs 10,000/-