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Star Bio Energy Scheme (SBES)

Purpose

For financing to Compressed Bio Gas projects.

Eligibility

Entrepreneurs, who have been awarded Letter of Intent (LoI) by Oil Marketing Companies (OMCs) for supply of CBG under SATAT Scheme.

Quantum of finance

There is no minimum or maximum credit limit stipulated.

Security

Primary Security:

Hypothecation / Mortgage of Assets created out of Bank finance. The facilities shall be secured by way of first charge on assets created out of Bank finance.

Collateral Security:

As decided by bank from time to time

Margin

Minimum 30%

Book Debts – Minimum 40%.

Repayment

Term Loan:

Repayable within 10 to 15 years period (including the moratorium period of maximum 36 months) depending upon the purpose of investment, economic life of assets and cash flow of the activity

Working Capital: Repayable on demand. To be reviewed/ renewed annually

Rate of interest

Interest Rates as decided by the Bank from time to time.