|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.
|Processing Charges || |
- Waiver of charges for loans upto Rs. 5 Lakhs as per RBI norms.
- All other cases – 75% of applicable charges, i.e., 25% concession.