Purpose:
Financing working capital requirements for New project i.e. acquisition / construction of land and building and plant and machinery (including second hand plant and machinery as per guidelines) based on the project cost.
Eligibility:
All new/existing units (including taken over from other banks) engaged in textile activity including Job worker /Traders falling under SME Segment as per regulatory definition.
Limit:
- Minimum Rs. 25.00 lacs
- Maximum Rs. 25.00 crores
- Assessment of limit will be independent of TUFS subsidy
Margin:
For cash credit:
25% on Stock and Book Debts (minimum)
For Term Loan:
- Factory Land & Building: 30%
- New P & M and other misc. fixed assets: 25%
- Second hand P & M (under TUF scheme): 30%
- Second Hand P &M (imported): 30%
- Second hand P & M (indigenous outside TUF scheme): 40%
Pricing:
Competitive rate of interest linked to MCLR