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KVB MSME Easy Loan

KVB's MSME Easy Loan is a specially designed loan for Micro and Small Manufacturing units whose turnover is less than Rs. 100 Lakhs in the previous year.

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3 - 7 Years

Max repayment tenor

10 Lakhs

Max BG Limit

20 Lakhs

Max HPL(M) limit

Features and Benefits

Eligible for existing Micro & Small manufacturing & service units (other than traders), whose turnover is less than Rs. 100 Lakhs in the previous financial year (with minimum one year of existence).
For Manufacturing units - OCC / SOD-RE / LC / BG / HPL (M).
For Services sector units - SOD-RE / HPL(M) (For Services sector enterprises OCC should not be sanctioned).

Charges and Limits

Purpose	OCC / SOD - Re-working capital purpose. LC- For purchase of raw material. HPL(M)- For purchase of machinery. Second hand machinery not older than 3 years with 50% margin is permitted.
Validity / Tenor	OCC / SOD/ LC / BG - Valid for one year and renewable once in a year. HPL(M) - 3 to 7 years (including holiday period) depending on cash flows.
Limit	OCC / SOD-RE / LC - Maximum Rs. 20 Lakhs. BG - Maximum Rs. 10 Lakhs. HPL(M) - Maximum Rs. 20 Lakhs. (All the three put together should not exceed Rs. 50 Lakhs).
Margin	OCC - 25% on stocks / 40% on Receivables. LC / BG - 15% cash margin. HPL(M) - 20% on new machinery / 50% on old machinery (not older than 3 years) to be purchased out of bank finance. SOD-RE - 33.33% (against 40% for others) on primary security i.e. residential / commercial / industrial land and building property.
Primary Security	OCC / LC - Stock of raw material, stock-in-process, semi-finished & finished goods & Receivables. HPL(M) - Machinery to be purchased out of bank finance. SOD-RE - Residential / commercial / industrial land and building property with a minimum cover of 150% of the limit.
Collateral Security	OCC / LC / BG - Residential / commercial / industrial land and building property with a minimum 100% of aggregate exposure or CGTMSE cover. HPL(M) - Residential / commercial / industrial land and building property with a minimum 100% of aggregate exposure or CGTMSE cover. SOD-RE - Entire current assets. If immovable properties are not sufficient to cover the required margin, Term Deposits / NSCs / Life Insurance Policies (all or any of them) may also be accepted to cover the difference amount. However, third-party instruments are not acceptable. Leased industrial property may also be accepted if the lease period is 30 years and above (perpetual lease) with mortgage rights in the lease deed.
Guarantor/s	Partners / Directors / Title Holders of the property given as security and husband of lady guarantors / proprietrix as per credit policy provisions.

Note: For processing charges & other charges, contact nearby branches.

Interest Rate

The Rate of Interest for each nature of the facility depends on various factors such as Credit Score, Coverage score, Internal Risk Rating, Priority or Non-Priority sector and so on.
To know the best ROI please contact the nearest KVB Branch.