| SN | PARAMETERS | DESCRIPTIONS |
|---|---|---|
| 1 | Purpose | To provide hassle free credit to meet finance requirements related to business activity or for expansion of business. Note: This facility is not available for purchase/construction of immovable property. |
| 2 | Eligibility | ✓ Business entities which are individuals, firms, companies, Limited Liability Partnership, co-operative societies, Trust, engaged in business activities, which are not prohibited by law or speculative in nature. ✓ GST registered units which have filed GST returns at least for the last one year. |
| 3 | Type of facility | 1. Cash Credit for Working Capital 2. Term Loan for purchase of fixed assets |
| 4 | Loan Limit | From Rs.1.00 lacs to Rs. 25.00 lacs. |
| 6 | Security | Primary Security: Hypothecation of assets created out of Bank finance along with entire current assets and non-current assets (Present & Future) of the Unit shall be ensured. Collateral Security: All Loans should invariably be covered under CGTMSE / CGTSSI. For obtaining guarantee coverage having loan above Rs. 10 lacs under CGTMSE, permission from Circle Head be obtained as per guidelines contained in MSME Policy. |
| 7 | Tenor of Loan | 1. Cash Credit limit: One Year subject to annual renewal. 2. Term Loan: Upto 7 Years (Including moratorium period of maximum 6 months however next higher authority can extend the moratorium period upto 1 year.) |
| 8 | Rate of Interest | As per Bank’s Policy guidelines |
9. Permissible Bank Finance
Calculation of MPBF:
Permissible Bank Finance shall be calculated by psbloansin59minutes.com portal based on the in-built method of computation of MPBF.
For Working Capital:
- X = Actual sales during last 12 months as per data fetched from GST portal.
- Y = Projected sales derived by the portal based on the sales during the last 12 months.
- MPBF = 20 % of Y.
For Term Loan: The loan amount shall be calculated by psbloansin59minutes.com portal based on the cash accrual, margin, tenure of loan, applicable ROI etc, with the help of in-built parameters.
10. Margin (%)
Minimum 25 %