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SME Short Term Loans

PURPOSE:

  • To meet temporary shortfall / mismatch in liquidity, for meeting genuine business requirements only.

ENTERPRISES GROUP:

  • Micro, Small & Medium Enterprises as per Regulatory definition and all other entities with annual sales turnover up to Rs. 150/- crores.

ELIGIBILITY CRITERIA

  • Satisfactory credit rating for the last three years.(BOB-5 & ABOVE)

  • Latest Balance Sheet etc. should be available.

  • Satisfactory financial performance in terms of sales / turnover and profits. Negative variance, if any, should not be more than 10%.

  • Satisfactory dealings with the Bank for at least three years.

LOAN AMOUNT:

  • Upto 25% of the existing Fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 10 Lakhs and maximum of Rs. 250 Lakhs.

PERIOD:

  • To be repaid in 12 months including moratorium period.

SECURITY

  • First charge / Equitable mortgage of fixed assets of the company / firm or extension of existing first charge / equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.25.
  • Extension of Charge on current assets for the additional facility ensuring that adequate drawing power is available.

  • Extension of all existing guarantees of Directors / Third party guarantees to cover the additional facility.

RATE OF INTEREST:

  • As applicable to existing working capital facilities.

PROCESSING CHARGES:

  • 25% concession in applicable charges.