Purpose

To provide timely, hassle-free and adequate credit delivery to meet the liquidity mis-matches and expenses incurred on activities like R&D, Product Development, Marketing and Branding, stocking the seasonally available raw material etc.

Eligibility

• Micro, Small & Medium Enterprises engaged in the manufacturing and services sector.
• The existing MSMEs with good track record as well as new MSMEs having satisfactory Due Diligence Report.
• The MSMEs may be an Individual, Proprietor, Partnership firm, Private/Public Limited Company, Co-operative Society.

Credit facility against agricultural property is strictly not permitted. Credit facility shall not be permitted against security of immovable property wherein Educational/ Religious Institutions are located. Vacant land may preferably be not taken as security under the scheme.

• The property of following close relatives may be considered subject to becoming of their co-borrower in the facility

• With a view to restrict the practice of diversions of funds and misutilization of the credit facilities availed from the Bank by the business concerns to strengthen their financials with other banks, it is advised that for the customers availing credit facilities under the PSB SME Liquid Plus Schemes, the precondition shall be to maintain the Working Credit Limit accounts with our Bank only and not with any other bank/financial institution

Quantum of Finance

Minimum: above Rs 10 lacs ,Maximum Rs.500 lacs

Quantum of Finance is subject to margin available

• Need based credit facility with maximum of 75% of realizable value of immovable property.
• The running account component is restricted to Rs 2 Cr within the overall limit, however term loan as single component can be considered upto Rs 5 Cr.
• Security in the form of NSCs (Margin 25%) /Bank’s Own Deposits (Margin 10%) /LIC Policies (Margin 10%) may be taken to supplement the overall security requirements.

Rate of Interest

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Processing Charges: 

For Term Loan:  @1% of the loan amount with Minimum of Rs.2000/-

For Overdraft Facility: @ 0.50% of limit sanctioned and to be collected on sanction and at the time of renewal every year.

Repayment

For Term Loan: Maximum upto 7 years.
 

For Overdraft: Repayable on demand. Interest shall be recovered immediately when due.

Guarantee

Personal guarantee of owners of property, spouse/ major son of prop., directors/partners

Concession in ROI for MSME Only

• Concession of 1.00% in RoI for cases, where realizable value of security offered as primary security to the credit facility is available to the tune of 200% or more.