Target Group:

• Traders who are individuals, firms (Proprietorship/Partnership), companies, co-operative societies dealing in any lawful trading activity i.e. trading in goods & services, which is neither restricted nor prohibited by RBI/Govt.
• Business concerns/agencies providing services such as Xeroxing, dry cleaning, licenses to deal in petroleum products/LPG, auto service centers, ISD/STD PCO Booths etc.

Eligibility

• Traders having Registration/ License as applicable under local laws (i.e. Shops & Establishments Act). The registration/ license may be as under:
  • Sales Tax Registration/ VAT Registration
  • Drug License for Retail Trade of Drugs/Medicines(where ever applicable)
  • Trade license for Ration & Civil supplies etc.
• Business concerns/agencies providing services as mentioned above should have relevant licenses from the appropriate authorities.
• The proponent should preferably be engaged in the line of business for at least 1(one) complete financial year.. The unit should be a profit making one.
• New units may also be considered selectively in deserving cases.

Purpose

For Working Capital Requirements
To meet day to day working capital requirement
For Term Loan
Acquiring/construction of premises, go-downs on ownership basis required for running the business.
For repair, furnishing, renovating existing business premises and/or purchase of furniture & fixtures.
For purchase of brand new equipments, business tools, computers, UPS etc.
For Clean Term Loan (Term Loan where no tangible asset is created)
For payment of Security Deposits and/or long term revenue expenditure like, advertisement, cost of franchisee, licenses etc.

Nature of Credit Facility

• Term Loan Finance:
Term loan may be sanctioned for the purpose(s) mentioned above. The repayment of term loan would be up to a maximum period of 7 years (including moratorium).

• Working Capital Finance:
 The working Capital Finance will be extended in various forms depending upon the purpose of finance/ nature of requirement and will be repayable on demand.

Quantum of Loan

up to Rs. 5.00 Crores.

Security

Primary:
Exclusive hypothecation charge on stocks, book debts & other current assets.
Exclusive hypothecation charge on all fixed assets such as, equipments, business tools, computers, furniture & fixtures etc. of the unit. In case of loan sanctioned for acquiring/ construction of premises on ownership basis, the property should be mortgaged in favour of Bank .
Collateral:
For existing units :
Collateral security in the shape of NSC’s, LIP (Surrender Value) or any other tangible security with realizable value at least equivalent to 75% of the total exposure
For New units:
Collateral security in the shape of NSC’s, LIP (Surrender Value) or any other tangible security with realizable value at least equivalent to 100 % of the total exposure.

Margin

a) 25% on  stocks
b) 30% on receivables upto 90 days only
c) 25% on term loan sanctioned for equipments, tools, furniture & fixture, computer hard-wares etc.
d) 50% on term loan sanctioned for acquiring/construction of premises, go-downs.
e) 25% on Clean Term Loan
f) 20% cash for Letter of Credit/ Bank Guarantee.

Tenure/ Repayment

Term Loan: Maximum of 84 months (including moratorium) which shall be subject to review every year.
Clean Term Loan: Maximum tenure of 3 years depending on cash flows.
Working Capital: The working capital limits shall be subject to review every year.
LC/Guarantee: The working capital limits shall be subject to review every year

Click here for Rate of interest

Click here for Processing Fees, Prepayment Penalty, Documentation Charges, Mortgage and other charges

Documents /Information to be provided by the applicant

• Proof of identity, address proof of the applicant i.e. individual, firm/company and constitutional documents e.g. Partnership Deed, Memorandum and Articles of Association, Certificate of Incorporation/ Commencement of Business, share holding pattern, list of Directors, etc.
• PAN Card
• Proforma Invoice of machine/ equipment etc to be purchased
• License/ approvals/ clearances required, if any, for carrying on the business activity
• Details of existing machinery, if any.
• For acquiring premises/ construction on ownership basis for running the business- proof of ownership/letter of allotment/Agreement to sell, construction plan duly approved by the competent authority, necessary approvals from statutory bodies, estimate of cost of construction/ renovation from architect.
• Income Tax Returns & Financial statements for the last two years (Actual), Estimates for the current year and projections for future period as per repayment period should be obtained in case of existing units. In case of new units, estimate for the current year only and projections for the future period should be obtained.
• Bank statement of account for last six months.
• Documentary proof of security offered including proof of ownership of immovable collateral securities offered with complete chain of title deeds, latest house tax receipts, income tax & other statutory dues clearance certificates.
• Photographs of the authorized signatories and guarantors, if any along with proof of their identity and address.