Purpose

a) Working capital: Fund Based & NFB facilities limits to meet day to day requirement / materials / labour payment / statutory payments.

b) Term Loan: For purchase of Plant & Machinery / Equipment / Transport Vehicles to be used for the execution of contract work.

c) Bank Guarantee: For bidding of tenders, mobilization of advance money, performance of the contract, guarantee in favour of Central / State Govt & its various departments and reputed Pvt. / Ltd. companies, guarantee for release of retention money.

Eligibility

• MSME units engaged in the Contractor/ Subcontractor activity.
• Sub-contractors executing work on behalf of main contractors are also eligible under this provided sub letting is through registered agreement and all required permission and licenses / registration are available.
• Borrowers can be Individual(s) / Sole Proprietorship / Partnership firm/ HUF/Joint Venture/Joint Stock Company or any other entity engaged in this line of activity.

Nature of Credit facility

Working Capital facility: Overdraft against property (ODP).

Term Loan

Non Fund:   Bank guarantee

Quantum of Finance

Minimum:              Rs 10.00 Lakh

Maximum:             Rs 2000.00 Lakh

80% of the realizable value of the property mortgaged

Rate of Interest

Security

Equitable mortgage of  immoveable property . 80% of the realizable value of the property mortgaged

Repayment

ODP                : On demand.

Term Loan     : Repayment in maximum upto 10 years

BG                   : Tenor of BG not to exceed 10 years.

Processing charges:

Type of facility

PSB Flexi Term Loan is a pre approved term loan, bundled with PSB Contractor Plus, with an aim to provide term loan assistance to contractors in a smooth and hassle free manner.

Eligibility

• All MSME credit constituents having satisfactory credit history of minimum 1year with bank and having working capital facility backed by property as primary or collateral.
• PSB flexi term loan will be sanctioned with working capital limit under PSB Contractor Plus of Rs.1.00 Crore and above.

Purpose

Term loan for purchase of machinery, equipment, commercial vehicles, furniture & fixture.

Quantum of Finance

Term loan of maximum 25% of the working capital limit.

Margin

25%

Repayment Period

 5 years (60 EMI).

Processing Charges

One time charges of 1.00% at the time of disbursement.

Rate of Interest

One Year MCLR + 2.00%