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.

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.
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.
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.
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