Small Business Enterprises Loan
Eligibility
a) Loan shall be granted to individual & all forms of business constitutions
b) Applicant must satisfy KYC Norms.
c) Applicant should not be a defaulter of any bank.
d) Minimum CIBIL rating shall be 700 (Credit Vision & Personal Loan Score)
Scope
All Retailers & Whole sellers (irrespective of Goods/Products), Manufacturers & Service Providers
Nature of Facility
Term Loan
Purpose of the Scheme
Term loan for procuring business related assets
Maximum limit
as per banks exposure
Margin
Term Loan: 30 % of Quotations/Estimates
Security/ies
Prime Security for Term Loan: Fixed Assets Built up from the Loan Funds
Collateral Security-Distress Value-Minimum 100% of Loan Amount as acceptable to the Bank
Repayment Period & Terms
Collateral Security-Distress Value-Minimum 100% of Loan Amount as acceptable to the Bank
For Term Loan- Maximum 180 Months ( including Moratorium Period, not more than 18 months) (Subject to Yearly review)
Rate of Interest (% P.a.)
a) Loan amount upto Rs.100.00 Lakh: 13.00% p.a & 1.00 % Rebate on Regular Repayment
b) Loan amount above Rs.100.00 Lakh 13.00% p.a. & 2.00 % Rebate on Regular Repayment
Note: Bank reserves its right to revise the rate of interest as per its Board’s Policy/RBI Policy from time to time.
Nature of Charge on Security/ies
Hypothecation Charge/ Pledge/Registered Mortgage/Equitable Mortgage/Lien/Assignment (depending on the security)
Visit
Visit to be done on yearly basis.
Guarantors
Two Creditworthy guarantors acceptable to the bank.
Share Linkage
Linking Shares of 2.50% of Total Loan amount should be subscribed by the borrower.
Penal Charges
2% over & above the normal rate of interest on overdue portion.
Disbursement
For Term Loan- Direct Payment to Vendors/Reimbursement to account on production of money receipts of evidence of payment.
Processing Fee [on loan amount]
For Fresh Loan- @ 1.50% of Sanctioned amount + GST
For a review of term loans: 0.50% of outstanding amount as of the date of review+GST
Other Conditions
This Scheme will be governed as per our Credit Policy & applicant has to submit
Last 3 years Final / Audited financial statements [Profit & Loss A/c, Balance sheet with all Schedules/annexure. (for existing activity). (if applicable)
Last 3 years Income Tax Returns along with Computation of applicant borrower & guarantor Individual / Proprietor /Trust & Trustees / Partnership firm & its Partners / Company & its Directors / Karta of HUF etc., as
Tentative financial statement if Tax Audit date is not completed, this exception is only for current year.
Reason for increase/decrease in sales/profit/loss, erosion of capital.
