| 1 |
Eligibility |
- Individual
- Proprietorship firm
- Partnership firm
- Limited liability partnership firm
- Private limited co.
- Public limited co.
- Association of persons
|
| 2 |
Purpose |
To purchase machinery / shop / godown / construction of premises for own business purpose / establishment of industry / purchase of commercial vehicle etc. |
| 3 |
Maximum loan |
75% of project cost, maximum as per exposure limit. |
| 4 |
Margin |
25% – 35% (as per project type / activity type) |
| 5 |
Security |
Primary security: Assets created out of Bank finance.
Collateral security:
- NIL, if loan is to be availed by an existing borrower / customer for the purpose mentioned in point 2, with satisfactory track record.
- For new entrepreneur:
- Nil, if the immovable asset is created out of Bank finance and 30% margin is maintained.
- Minimum 25% of loan if other than immovable asset is created out of Bank finance.
|
| 6 |
Linking share |
2.5% of sanction limit. |
| 7 |
CIBIL |
The CIBIL reports of applicant(s) / guarantor(s) should be scrutinised, and any adverse observation in the CIBIL report should be scrutinised and commented on suitably. |
| 8 |
Guarantor |
Two guarantors, individually good for the amount involved and acceptable to Bank (should be share holder of the Bank). |
| 9 |
Repayment |
- As per project / maximum 7 years including moratorium period (moratorium period 15 days to maximum 18 months as decided by Bank as per project).
- For creation of immovable asset for business purpose out of Bank finance, repayment will be as per project / maximum 10 years including moratorium period (moratorium period 15 days to maximum 18 months as decided by Bank as per project).
|
| 10 |
Rate of interest |
| Category |
Base Rate (%) |
Premium (%) |
Effective ROI (%) |
- For new entrepreneurs where immovable asset is created out of Bank finance and collateral security is 40% or more.
- For new entrepreneurs where other than immovable asset is created out of Bank finance and collateral security is 60% or more.
- For existing borrower / customer with satisfactory track record.
|
9.25 |
0.00 |
9.25 |
- For new entrepreneurs where immovable asset is created out of Bank finance and collateral security is less than 40% or no collateral.
- For new entrepreneurs where other than immovable asset is created out of Bank finance and collateral security is 25% or less than 60% of loan amount.
|
9.25 |
0.50 |
9.75 |
|
| 11 |
Type of loan |
Term loan |
| 12 |
Insurance |
Insurance against all risks covering assets created out of Bank finance and collateral security, at borrower's cost with Bank's charge on policy.
The premium amount of life insurance to protect the liability against life, if applicant opts, can be considered without margin in project cost. |
| 13 |
Processing fee |
0.50% of sanctioned limit + GST (maximum Rs. 1.00 lakh) |
| 14 |
KYC |
Mandatory for all types of customers. |
| 15 |
Prepayment charges |
NIL, if paid from own funds; otherwise 3% of outstanding amount. (If the loan is taken over by another institution, prepayment charges will be applicable.) |
| 16 |
Other |
- Security valuation and search of the property should be obtained from the panel valuer and panel advocate. For third-party security, the property holder should be guarantor and should be share holder of the Bank also.
- Discretion for reduction in collateral security is with Board of Directors.
- Takeover of loan is permitted; however, the margin to be maintained on value of existing asset created out of Bank finance will be book value.
- Financial parameters should be as per loan policy; the one stage above the sanctioning authority is empowered to consider deviation with justification.
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