Purpose:
To provide need based funding to Individuals/ Units engaged in trade of any commodity / goods in physical form required by the community and trading in them is not prohibited by law or opposed to public interest.
Eligibility:
- The business units should be profit making for the last 2 years. Units having less than -2- year’s establishment can also be considered subject to prior approvals.
- Borrowers to comply with the Licensing requirement for the business.
Facility:
- Overdraft: Working capital requirements
- Non-fund based facilities (Letter of Credit & Bank Guarantee): Non fund facility can be considered over and above the Working capital / Term Loan limit.
Term Loan:
- For Traders: Development of shop - (Purchase of equipment, Computer, Air-Conditioner, Furniture etc.; but not for purchase of shop, for need based requirements.
- For other units – For Purchase of Plant and machinery/ Equipment; repair/renovation of factory land and building.
Limit:
| |
Rural |
Semi- Urban |
Urban |
Metro |
| Minimum |
Rs.2.00 lacs |
Rs.2.00 lacs |
Rs.5.00 lacs |
Rs.5.00 lacs |
| Maximum |
Rs.100.00 lacs |
Rs.300.00 lacs |
Rs.500.00 lacs |
Rs.1000.00 lacs |
Tenure:
- Loan: Maximum 60 months (depending on repayment capacity).
- Overdraft: 12 months, subject to annual review.
Rate of Interest
Competitive pricing linked to Repo rate/MCLR