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IND EQUIPMENT & WHEELS (CE/CV) scheme

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IND EQUIPMENT & WHEELS (CE/CV) scheme

S.No

Parameters

Product Features

Target Group

All MSME units having URC/ UAC ,engaged in Manufacturing, Service / Trading activities as per extant guidelines of Govt. of India.

Purpose

For purchase of various Machineries/ Equipment’s, E-Vehicles, Commercial Vehicles / Buses including Material handling equipment’s / Earth moving, Excavation, construction and mining equipment’s etc.
Only newly purchased machineries / equipment’s/ Vehicles are permitted for financing under the scheme.

Eligibility

MSME units with business vintage of minimum 2 years.
Net worth of the unit should be positive.
Existing facilities availed (if any), should not be appeared in SMA-2 & above during last 12 months.
CMR of 1 to 4 or equivalent CIC score.
In case of CMR 5-6 or equivalent CIC score / CMR-NA, Credit policy guidelines to be complied.
Units with business vintage of less than 2 years but group accounts having business vintage of 2 years and making cash profit, can be considered.

Nature of Facility

Term Loan, Capex LC (Inland / Import) as sub limit of TL.

Assessment

Based on Cash flows of the unit and compliance to DSCR.
New Units can be considered based on realistic projections.

Loan Amount

Minimum Loan Amount: Above Rs 10.00 Lakhs
Maximum Loan Amount:

No of Years of Business Vintage	Maximum Loan amount
Upto 2 Years	Rs.1.00 Cr
> 2 Year	Rs 2.00 Cr
>3 Year	Rs 5.00 Cr
>4 Year	Rs 10.00 Cr
>5 Years	Rs 25.00 Cr

Credit Proposals beyond Rs 25 Cr under the scheme can be considered at Corporate Office based on Single / Group exposure limits.

Margin (Promoter’s Contribution)

Machinery/ Equipment - 15%
Commercial Vehicles - 20%

Repayment Period & Holiday Period

Particulars	Max Moratorium	Door to Door Tenor
Commercial Equipment*	Up to 2 Months	Maximum 60 Months
Commercial Vehicle	Up to 2 Months	Maximum 60 Months

*Sanctioning authority may consider tenor upto 84 Months on case to case basis.

Interest during holiday period is to be serviced as and when debited.
Limit sanctioned can be availed in tranches as per the requirement of the borrower.
Borrower can be approved with credit line as per eligibility which is to be availed within a maximum period of one year from the date of sanction. (i.e. Initial availment of limit should be within 6 months and full availment of limit to be within 1 year from the date of sanction)

Security :

Primary: Hypothecation of Machineries/Equipment’s/ Vehicles / asset created out of loan proceeds.

*Collateral* Security Requirement
Existing Borrowers having Credit Limits covered by Immovable / Liquid Security	An undertaking from the borrower to be obtained taking their consent for non-release of existing securities till the closure of credit facilities sanctioned under the scheme as detailed in the Annexure – II
New to Bank Customers/ Existing Borrowers without any Immovable /Liquid security coverage	CMR 1-4 or equivalent other CIC score	CMR 5 & 6 or equivalent other CIC score, NA
	ü Nil collateral, if covered under CGTMSE. Guarantee Fee to be borne by borrower. Coverage under Hybrid model is also permitted as per extant CGTMSE guidelines. In case, the borrower is not willing to cover under CGTMSE, minimum 25 % of loan amount to be secured by way of immovable property/liquid security.	ü Promoter/ Partner have CIBIL score of 730 & above or equivalent other CIC score. Additional 10% collateral by way of immovable property/liquid security. Requirement of additional 10% collateral can be waived by Sanctioning Authority, if the proposed loan is covered under Hybrid model of CGTMSE.

Guarantee: Personal Guarantee of all the Promoters/partners/directors of the unit and Property owners are mandatory.

10.

Rate of Interest

a) Accounts having Immovable properties / liquid securities / Hybrid Security:

Rating

Repo

Prime

Spread

Business Spread

Total

A & above

5.25%

2.70%

0.30%

8.25%

BBB

5.25%

2.70%

0.50%

8.45%

b) Accounts with CGTMSE Coverage:

Rating

Repo

Prime

Spread

Business Spread

Total

A & above

5.25%

2.70%

0.50%

8.45%

BBB

5.25%

2.70%

0.80%

8.75%

11.

Upfront fees / Processing

Charges, Other Charges

50% Concession in Processing charges/ Upfront fee.
Other Charges as per Service Charges Circular.
Concessions in service charges may be extended as per delegated powers on case to case basis.

12.

Prepayment Penalty

As per latest service charge circular.

13.

Entry Level Barrier

Exposure of Rs 1 Cr & above	Combined internal rating IB BBB (Based on ICON Rating)
Exposure up to Rs 1 Cr	Internal rating BBB (Based on Scoring Model)

14.

Take Over Guidelines

Not Permitted.

15.

Other Conditions

Pre-Approved line of credit can be considered to the eligible borrower for 12 months based on annual purchase plans and other factors.
Amount should be remitted directly to the dealers / suppliers by DD / NEFT / RTGS.
Due diligence of the suppliers to be ensured.
Units should have necessary approvals from the statutory/ regulatory authorities (wherever applicable)
All securities should be adequately insured with Bank Clause– Premium to be borne by the borrower.
Charges to be registered with ROC/SRO/Vahan Portal/ others as per extant guidelines.
Promoters’ contribution should be brought up front/ proportionally.
Pre-Release Audit/legal audit have to be conducted as per extant guidelines of Credit Policy.
Loans covered under CGTMSE having obligor rating of BBB(-) are not to be financed under the scheme.
Preference under the scheme to be given to borrowers with obligor rating of BBB+ & above having tie-up arrangements with cash flows.
For NTB customers, customer due diligence and CKYC to be verified for creating new CIF.
Customer Due Diligence guidelines to be adhered including SMA/ NPA status of customer, Wilful Default / Suit Filed / Non Suit Filed / CIBIL default checks etc.