| Target group |
Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc established as Proprietorship / Partnership firms, Limited Companies |
| Eligibility |
- Engaged in the business line at least for the last 3 years
- Having Audited Financial Statements
- Entry level credit rating should be SBS 5. No deviation to be considered.
|
| Purpose |
For meeting working capital needs |
| Nature of facility |
Line of Credit by way of fund based working capital limit, Bank Guarantee/ letters of credit |
| Quantum of Limit |
Minimum Rs.10 lacs and Maximum Rs.500 lacs |
| Appraisal of loan |
- 30% of last two years average turnover.
- Of this, 2/3rd will be used for Fund Based facility and 1/3rd for Non-fund based facility such as BG/LC.
|
| Margin |
Minimum 20% for fund based facility. Though the limit will be treated as unsecured, contractors will have receivables which should be charged to the Bank and a margin of 20% maintained thereagainst.
Minimum 15% cash margin for non-fund based facility |
| Rate of Interest |
As per prevailing rate of interest structure in terms of HOBC:104/94 dt. 15-11-2010 |
| Processing Fee, Documentation charges, Commitment charges etc |
For accounts falling within regulatory definition of MSME : In terms of HOBC : 102/218 dt. 20-03-2009. (MSME accounts within regulatory definition are exempt from commitment charges) |
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. |
| Security |
Primary :
- First charge on the unencumbered assets of the company/firm both current and fixed assets.
- Margin on non fund based limits.
|
| Collateral : Suitable collateral to be obtained so that asset cover of 1.50 is maintained. |