Adv 159/2012-13 dated 30 03 2013
SLP – MSME SectorSl NoName of the Product
1 Ind SME Secure
2 IB Doctor Plus
3 IB My Own Shop
4 IB Vidya Mandir
5 IB Contractor
6 IB Star Rice Mill
7 IB Bal Commercial Vehicle
8 IND Auto
9 IB Micro
Ind SME Secure
All MSME – Manufacturing / Service
Existing & Fresh Units
Not a restructured / rescheduled account
Group Accounts not NPA with other Bank / FI
Quantum of LoanExposure
Minimum – Rs 10 lakhsMaximum – Rs 10 Crore Per Borrower Rs 25 Crore Per GroupWorking CapitalSec OD - Rs 25 LakhsOCC - Above Rs 25 lakhs
SecuritySec ODPrimary Security – Land Building – 30% MarginCollateral - Hypothecation of Stocks
Option for sec OD / OCC for limit <= Rs 25 lakh
Unit Inspection – Monthly Stock statement – AnnualDP Based on Security Value
OCC
Limit above Rs 25.00 lakhs
Security
Primary – Hypothecation of Stocks / BD
Collateral – Factory Land – Free Hold / Lease
Other modificationResidual Lease Period shall not be < Rpt
Period + 5 YearsProperty offered as EM should be in
possession of mortgagorSanctioning authority can decide on quantum
of NFB limitNeed based limit(LC/DP/DA) may be
considered on merit
Doctor PlusTo Whom
Individual / Regd Firm / Ltd CoKey promoter / Spouse should be qualified
medical practitioner
PurposeClinic / Clinic cum residence / Lab / Medical
Store / Vehicle / Ambulance / Expansion / Renovation of clininc / Modernization of existing premises
Doctor PlusLimit Minimum 1 lakh Maximum – as per discretionary powers
Repayment 120 months with max 12 months holiday period
Explore possibilities of Insurance Policy of key man duly assigned to the bank
Security
Sanctioning Powers
IB ContractorContractors of Central / State Govt / reputed
PSU / reputed corporateSub – Contractors of Central / State Govt /
PSU selectively – sanction by ZMIn Business for 3 yearsNet Profit for last 2 years / IT return analysedTake over is permittedIndividual / Proprietary / Regd Partnership /
P Ltd
Facility
Fund Based – Secured OD /BP Term Loan NFB – LC / Guarantee
Limit
Min Rs 10 lakhs Max Rs 500.00 lakhs per borrower
Max Rs 1000.00 lakhs per Group
MarginSec OD – EM of Property – 50%
TL – Equipment – 40%
Bill Finance - 15%
NFB - 10%
SecurityMTL – Hypothecation of equipments
SOD – EM of Property – 200%
No Agricultural / Rural Property accepted
3rd Party with ZO approval
2 Valuation report from Panel Engineer
Legal Audit irrespective of Limit
Other T & CRepayment – 84 Months
Commission on BG – 0.60% per quarter or part thereof
Sanction Powers – 120% of power booklet
Application form – MSME Form
WC Assessment – TO method
Other T & CMTL - Payment direct to equipment supplierTO monitoring monthlyBooks of accounts to be scrutinized once in
3 monthsSOD brought to credit once in a yearBP after getting letter from debtorEM property to be inspected halfyearlyInsurance with bank clauseNo QIA/CMA/Stock AuditPre-payment charges applyOption to avail under Ind SME Secure
My Own ShopIndividuals / Professional / SE / Firms3 years in the activity / 2 years By ZMAge <= 50 years / upto 60 years by ZM
PurposeNew Commercial Space / Shop / Second hand purchase – residual life = Repayment + 2 years / Take Over similar purpose / Own use / Letting
outon rent – rental income to be routed to loan a/c
Quantum36 times gross / 60 times netIncome of co-borrower includedFirm – 5 times of cash profit of preceding
yearOr 4 times of average cash profit of last 3 yearMaximum Rs 50 lakhs / ZM 75 lakhsSE – Gross income net of tax before
depreciation may be considered
Other T & CMargin – 25% - ready built – full margin in advance Construction – margin on pro rata basisRepayment – max 10 yearsHoliday Period – Max 12 monthsInterest to be serviced during holiday
period3rd party Gtee need not be insisted if
margin is => 40%Upto 10 lakhs under CGTMSE
Vidhya MandirReputed Edn Institute / ZM – TTE
PurposeConstruction of pucca building with RCC
roofing Upgradation – asbestos sheet / fibre glass / GI sheets / red mud plastic sheetsSecurity Equipment / Fire Alarms / Fire Extinguisher
Vidhya MandirQuantum – Max 3 Crore – Term Loan
Margin Upto Rs 2 lakhs - Nil> 2 lakhs - Equipment – 10% Building - 25%Repayment - 10 years Instalments / No EMI
SecurityUpto Rs 2.00 lakhs – Personal Gtee of
Promoters> Rs 2.00 lakhs - EM of school building /
Other collateral
Powers - Scale I – 5 Scale II – 10 Scale III – 25 Scale IV – 75Administrative clearance - CRE
Star Rice MillFresh / Existing Rice Mills Consistent net Profit – 2 yearsTake OverAcquisition of new machinery / factory building for
modernizationWorking capital needsWC – Upto 5 Crore TO / > 5 Cr – MPBFMargin on Term Loan – 25%Margin on WC - stocks– Upto 1 Cr 20% / 25%Margin on WC – BD – 25% (90 days)Margin on NFB – As per normsTL – Repayment – Max 7 yearsSanctioning Powers – 120% regular powersSecurity – 100% of loan amt / 50% by ZM
IB BAL Commercial Vehicle:-Target Group:- Existing / New transport
operators for purchase of new commercial vehicles manufactured by M/s Bajaj Auto Ltd(BAL) for transportation of passengers or goods
Purpose:- to finance transport operators in MSME sector.
Eligible amt:- max. one commercial vehicle (Auto rickshaw /Comm.three wheeler) per borrower.
Two commercial vehicles per group or Rs.10 lac whichever is lowerRepayment: Max. 60 EMIs(holiday max. 3 months)Margin: 15% on road price.
IND Auto:-Existing / new transport operarors for
purchase of new comm. Vehicles mfg. by M/s TVS motor comp. Ltd.Borrower below 45 years of age.
Purpose:- To finance trasport operators in MSME sector for purchase of TVS Auto rickshaw /Public carrier vehicles.
Eligible amt:- Max. one comm. Veicle(up to 2 lac) per borrower. Two comm. Vehicles per group or Rs 4 lac which is lower.
Repayment:- Max. 60 EMIs incl. 3 months holiday period. Margin: 15%
IB MICRO:-Coverage & Eligiblity:-All micro mfg. & service
units. RAM rating waived. No take over allowed.CGTSME cover not available for RT/ Edu.
Inst./SHGsConstitution:- Individual, Proprietary, Partnership,
Pvt.Ltd.Exposure ceiling:- Rs 20 lakhs, Composite loan.Quantum of loan:- 20% of estimated annual turn
over as W.capital & Term loan with margin 25%.Security:-Primary: Assets created out of loan,
CGTMSE cover mandatory. No collateral.
Repayment: 60 EMI after a holiday period of 6 months. Total repayment period:66 months
Sanctioning auth:Scale 1: Rs 7.5 lakhs, II-Rs 10 lakhs, III & above-Rs 20 lakhs
Int: BR+1+ 0.50 TP now 11.75% for women 0.50% concession .
Processing charge: Up front fee at 0.57% incl. of serv. Tax. No prepayment charge.
CMA data, MSOD and periodical stock statement need not be obtained.
Activities not eligible for CGTMSE cover (like retail trade, educational institutions, SHG etc;) should not be financed under this product.
RAM rating is waived. However, entry level rating based on scoring model as per CRM Policy should be complied with
No take over of borrowal accounts is permitted under this product
Promoter’s contribution should be brought upfront
Application form as per our circular ADV : 45 dtd 17.07.13.
Stock statement for the first month after disbursement should be obtained and kept alongwith documents as a proof of enduse of working capital component and stamped receipt in respect of term loan component.