MSME Capex Loan and Capex Card

Purpose

The loan to be considered for the following capital expenditure related to the regular business activity:

• Replacement of old machinery, purchase of balancing equipment, modernization, investment in research and development, installation of captive power plants and upgradation of technology, alteration in the layout of factory/office, acquisition of software, hardware, and tools, jigs, fixtures etc. forming part of plant and machinery, purchase of cars, passenger cars for staff and other vehicles for use of business purpose.

Eligibility

MSME borrowers (Regulatory) and SME (Expanded) rated BOB-5 and above. The manufacturing/service sector units should have been established in the line of activity for a minimum period of two years, Account running with satisfactory dealings for the last one year and above and no adverse features are reported in the conduct of the account.

Limit

• 25% of gross block of plant and machinery for MSME (Manufacturing) as per last audited balance sheet or 10% of the working capital for service sector based on DSCR and subject to cap
• Baroda MSME capex card: Minimum 25 lakhs and maximum Rs. 5 crores
• Baroda MSME capex loan: Minimum 25 lakhs and maximum Rs. 2 crores
• The facility is made available as fund-based/non-fund based limits (i.e., the establishment of LCs), ensuring that aggregate exposure does not exceed the overall limit.

Margin

Land and building- 30%, plant & machinery- 25%

Repayment

3 to 7 years including the moratorium period.