Applicable to |
This special scheme is offered to MSME borrowers in five Zones of Bank, namely Ahmedabad, Baroda, Chennai, Jaipur and Rajkot. |
| Nature of facility |
Term Loan/Demand loan, Cash Credit and
Non-Fund based limit ie LC & Bank Guarantees |
| Limit |
Minimum: Rs. 25 lacs, Maximum: Rs. 25 crores. |
| Purpose |
- Working Capital requirement both Fund Based and Non-Fund Based.
- Financing new project i.e. acquisition / construction of land and building and plant and machinery (including second hand plant and machinery as per Bank 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 MSME Segment.
The following textile activities may be covered under the scheme:
A) Regulatory:
i) Manufacturing of :
- Cotton Fabrics
- Cotton Yarn
- Worsted Fabrics
- Readymade Garments
- Denim
- Jute Textiles
- Viscose Staple Fibre
- Viscose Filament yarn
- Acrylic Fibre
- Texturizing
- Fibre Intermediates (polyester)
- Blended yarn
- Manmade Fibres
- Warp knitting
- Circular knitting
- Dyeing or/and printing unit
- Grey cloth weaving
- Embroidery Unit
- Jari badla/ Jari thread/ malai Dhori
- Spinning of cotton / synthetic yarn
- Synthetic-Fabrics
- Man Made Fibres
B) Baroda SME Gold Card: Borrower accounts with ‘Standard’ category for the last 1 year subject to internal credit rating of Bank. The constitution of borrower can be Proprietorship / Partnership concerns / LLP / Private Limited Co. / Ltd Co. HUF are not eligible. |
| Method of assessment of working capital limit |
As per Bank Guidelines.
Note A: Assessment of limit should be independent of TUFS subsidy ie while calculating DSCR and Margin, projected TUFS subsidy should be excluded. |
| Rate of Interest |
The interest rate under this scheme is applicable as per Table A, subject to certain conditions mentioned in Note A:
TABLE A |
|
Sector
|
Rate of Interest
|
| Micro and Small Enterprise |
BRLLR + SP + 1.50% or as per credit rating whichever is lower, subject to Minimum Obligor rating accepted in Bank. |
| Medium Enterprise |
BRLLR + SP + 1.50% or as per credit rating whichever is lower, subject to Minimum Obligor rating accepted in Bank. |
| SME Expanded |
MCLR + SP + 2.00% or as per credit rating whichever is lower, subject to Minimum Obligor rating accepted in Bank. |
Note A :
- Internal Credit rating should be carried out and only the accounts with internal rating accepted as per Bank Guidelines, shall be considered for financing.
- Bank reserve the right to refix the spread as and when deemed fit without prior intimation.
- For the Exposure upto Rs. 5 crores borrower may opt for ROI Linked to CMR Rating.
- Bank offers special concessional ROI and allows higher exposure limit for borrowers in Baroda & Jaipur Zone.
|
| Margin |
|
Type of Facility
|
Type of Primary Asset
|
Margin
|
| Cash Credit |
Stock and Book Debts |
25% (minimum). |
| Term Loan |
Factory Land & Building |
30% |
| New Plant & Machinery and other misc. fixed assets |
25% |
| Second hand Plant & Machinery (under TUF scheme) |
30% |
| Second hand Plant & Machinery (imported) |
30% |
| Second hand Plant & Machinery (indigenous outside TUF scheme) |
40% |
|
| Period |
- For working capital facilities : 12 Months
- For Term Loan: Maximum 9 years (including moratorium period), subject to review every year.
|
| Repayment of Term Loan |
- In suitable monthly Instalment after Initial Moratorium period.
- Interest to be serviced every month even during moratorium period.
|