| SN | PARAMETERS | PARTICULARS |
|---|---|---|
| 1. | Purpose/ Objective | ❖ To provide hassle free credit for working capital requirement ❖ To augment long term margin ❖ For Purchase/Construction/Renovation of Business Premise/Office/Godown/Shop/ Unit /Expansion of business etc. ❖ For acquiring/creation of fixed assets needed for business purpose ❖ To tide over temporary liquidity mismatch ❖ To repay debts (i.e. Business Loans of other Banks/FIs) |
| 2. | Eligibility | All MSMEs and Non MSMEs for business purpose except certain exclusion |
| 3. | Type of facility | Overdraft (General/Reducing)/ Term Loan/Non-fund based facility |
| 4. | Loan Amount | Need based. |
| 5. | Assessment of Loan | 25% of projected annual sales or receipts, whichever is lower, or on the basis of Cash Budget (Cash flow Based) method as per business activity or 4 times of average cash profit of last 3 years or maximum prescribed LTV, whichever is lower subject to minimum prescribed LTVIf the borrower is not maintaining proper financial statements such as Doctors, Lawyers, Architecture, other professionals, self-employed etc. MPBF can be given as 4 times of their annual income. |
| 6. | Tenure of Loan/ Repayment | ❖ OD reducing & Term Loan: 180 months ❖ Overdraft General: One Year, subject to annual renewal. |
| 7. | Loan to Value Ratio(LTV) | ❖ Residential Property: Maximum upto 65% of R.V. of the property. ❖ Other than Residential Property: Maximum upto 60% of R.V. of the property. |
| 8. | Rate of Interest | Above ₹0.50 lakh upto ₹ 25.00 lakh – RLLR+BSP+2.40% Above₹ 25.00 lakh & Upto ₹ 5.00 Cr – RLLR + BSP+1.10 % Above ₹5.00 Cr – As per Card rate linked to RLLR+BSP subject to capping of RLLR+BSP+ 1.60% |
| 9. | Process Fee /Upfront Fee | a) Overdraft: Process Fee @ 0.25% p.a. of the limit b) Term Loan :Upfront Fee @0.50% of the loan amount |