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The scheme is available to cover credit facilities to eligible borrowers in MSE sector (Manufacturing & Services).All types of unorganised service and manufacturing sector including small shop owners like those engaged in mobile / TV repairing(Not Selling), small garage, juice shop, bakery owner, Sweet Meat / Farsan Shop etc will be eligible. However, the following category will not be eligible under the scheme:
Ø Retail Trade (categorized as small services)
Ø Educational/Training Institutions
Quantum of Finance
Maximum Rs.100.00 lacs per borrower for MSE sector (Manufacturing & Services).
Mode of Assessment
UPTO RS. 10.00 LAKH (INCLUSIVE RS.10 LAKH)
For those borrowers who are not filing income tax returns the income can be assessed on the basis of income and expenditure statement and other financial papers. Limit assessment to be done as per the annual income generation method i.e., 48 times of monthly income or 4 times of annual income can be considered for sanction of OD/CC limit.
ABOVE RS. 10.00 LAKH
Overdraft/Cash Credit working capital limit is to be assessed as per turnover method, i.e., 20 % of projected annual turnover. The working capital limit shall be for a period of 12 months and to be renewed/ reviewed annually.
Term loan limit for purchase of plant, equipments & machinery can also be considered on the basis of cash flow subjected to minimum DSCR of 1.5:1.
Nature of Finance
1. The facility may be either Overdraft / Cash Credit working capital limit or Term Loan.
2. In case of loans up to Rs.10 lacs, Over Draft limits may be allowed without insisting for Stock Statements, particularly for Service Sector.
The Term Loan amount will be repayable in Equated Monthly Instalments subjected to a maximum period of 84 months.
No collateral security & guarantee required up to a loan of Rs. 100.00 lacs, as the loan for MSE sector (Manufacturing & Services) will be covered under CGTMSE, however Primary security i.e. hypothecation of stock and receivables or charge on Fixed assets to be kept as security. (Please note that apart from Land & Building purchased/ built out of Bank Finance, existing Land & Building on which the proposed activity will be run will also be considered as Primary Security under CGTMSE Scheme.)
The full value for the hypothecated stock and fixed assets will be insured for fire, riot & where ever required against other appropriate hazards with bank clause.
Rate of Interest
BR + 0.50% upto 10.00 lakh (10.25+0.50=11.75%)
BR + 1.00% for more than 10.00 lakh & upto 100.00 lakh (10.25+1.00=11.25%)
Upto Rs.50,000---Rs.100 per proposal
For more than Rs.50,000 upto Rs.5.00 lacs-----Rs.1000 per proposal
For more than Rs.5.00 lacs & upto Rs.100.00 lacs-----0.5% of the loan amount (maximum Rs.25,000)
Renewal charges @ 0.10% of the loan amount (maximum Rs.15,000)
Details of Forms /Documents required
1. Application Form.
2. Details of Primary securities
4. Documents for KYC verification.
5. Constitution of the borrower i.e. individual, proprietorship, partnership, limited company, with supporting documents.
6. Usual OD/CC/ Term Loans documents of the bank