||Proprietorship / Partnership firms, Limited Companies falling within the new definition of SME, engaged in the business for the past 3 years with audited financial statement of accounts |
- The borrower should have known source of funds to pay for the margin and initial recurring expenses.
- Should be profit making for the last 2 years
- Entry level credit rating SBS 5. No deviation to be permitted.
||General purpose term loan for SME constituents Viz., for R & D activity, marketing and advertisement expenses Purchase of machineries / equipments, Preliminary expenses etc. |
|Nature of facility
The safety of this advance will substantially depend on cash flow arising out of activity being financed. It should be ensured that the profits generated / anticipated to be generated turns into liquid cash to service the loan.
|Quantum of Loan
||Minimum Rs.10 lacs and Maximum Rs.500 lacs|
||To be repaid in 84 installments within a period of 7 years inclusive of moratorium period of up to 12 months. Interest to be serviced as and when debited. |
|Appraisal of loan
50% of unencumbered value of the property under offer or 75% of actual requirement for the stated purpose which ever is less Minimum : Rs.10 lacs Maximum : Rs.500 lacs.
Note : Extant guidelines with regard to valuation of property, title clearance and inspection by two different officials etc., must be strictly adhered to.
Average DSCR should be minimum 1.25.
||As stated above|
|Rate of Interest
||As per prevailing rate of interest structure in terms of HOBC:104/94 dt. 15-11-2010. |
|Processing Fee, Documentation charges etc
|For accounts falling within regulatory definition of MSME : In terms of HOBC : 102/218 dt. 20-03-2009.
||For accounts not falling within regulatory definition of MSME but within the new definition of SME : In terms of HOBC: 102/119 dt.19-09-2008. |