IB CONTRACTORS
IB CONTRACTORS
| Particulars | Guidelines |
|---|---|
| Target Group | Individual / Proprietor / Registered Partnership / Limited Liability Partnership (LLP) / Pvt & Public Limited Companies under Micro, Small & Medium Enterprises (MSME) as per extant definition of Government of India
Well established contractors (civil, mechanical, electrical etc.), performing contracts for Central / State Govt. / reputed PSUs / reputed Corporates. Contractors / Sub-Contractors should be in the line of business for 3 years & has earned continuous profit for last 2 years. Sub-Contractors are eligible for finance GST registration of the borrower is mandatory, wherever applicable. Applicant Should have certificate under MSME Act, 2006 |
| Purpose | To finance contractors carrying out work orders from various Central / State Govt departments /reputed PSUs/ reputed Corporates covers all aspects like purchase of machinery, working capital requirements etc. |
| Types of Facility | Fund Based: Secured OD / OCC / Term Loan / BP
Non-Fund Based: Bank Guarantee / LC |
| Loan Amount | Minimum Loan Amount: Above Rs. 10 lakh per borrower
Maximum: Rs. 10 Crores per borrower (FB+NFB) Rs. 20 Crores per group (FB+NFB) |
| Margin (Promoter’s contribution) | 50% on EM property for Secured OD
20% on Stock and Book Debts 20% on equipments / Term Loan 15% for Bill Finance. 10% against Guarantees / LC |
| Security | Primary Security:
o SOD – EM of property (Min. 200% of the limit). o OCC – Stock and Book Debts o MTL – Hypothecation of equipments purchased by availing MTL. o BG- Counter guarantee by applicant. o Cash margin by way of FDR. Portion uncovered by cash margin should be covered with value of security. o LC- Cash margin by way of FDR and Hyp. of stocks procured against LC. o BP- Undertaking from the debtors to make payment directly to the Bank. Collateral Security: In case of OCC, 100% collateral security coverage in the form of immovable property / liquid security to be obtained. |
| Repayment terms | Term Loan shall be repayable in maximum of 84 months, including holiday period. |
| Processing & other charges | All Charges are at Card Rate |
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