||Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc established as Proprietorship / Partnership firms, Limited Companies
- 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.
||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.
||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.
- 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.