Pre Approved Business Loan
Pre Approved Business Loan
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Particulars |
Guidelines |
| Target Group | All MSME Units having Current account (CA) with our Bank. |
| Eligibility | · Constitution type: Individuals (excluding staffs) and Proprietorship concern.
· Customers having CA and satisfactory transactions in the past 12 months. · Applicant (Individual/Proprietor) CIF should be Re-KYC complied, CIF status is active and having valid mobile number and PAN. · Entry Age: 21 years to 70 years · The CIF/Accounts of firm and individual must not be classified as NPA/ SMA-1/SMA-2 presently and NPA in last 12 months. · Must not have any existing PAPL A/c. |
| Purpose | To provide hassle free finance to our existing customers for meeting their multiple business requirements. |
| Nature of facility | Term Loan |
| Quantum of Limit | Minimum Loan Amount: Above Rs.1,00,000/-
Maximum Loan Amount: Rs.10,00,000/- |
| Assessment of Loan Amount | The Maximum Loan eligible amount for each customer is pre-defined based on the transactions in the current account in past 12 months. |
| Tenor of loan | Fixed 36 Months |
| Repayment Terms | Equated monthly instalments, Repayment will start from subsequent month of Loan Account Creation.
Irrevocable Standing Instruction (SI) for recovery of the EMI from the existing Current account with us. NACH mandate/ ECS mandate from customer, if business account is maintained with other Bank. |
| Security | Hypothecation of assets created out of Bank’s finance. |
| Margin | Stocks and Book debts: 20%
New Plant & Machinery / Equipment and vehicle: 25% |
| Insurance | The Assets acquired out of Bank finance to be covered with adequate Insurance with Bank’s Clause at borrower cost. |
| CIBIL / CIC Score | · CMR Rank 1- 4, In case of Non – Individuals.
· CIBIL score 730 & above, In case of Individuals and with no CMR score · DPD not more than 30 days in the past 12 months. · Other CIC Score – Equivalent to CIBIL Score.
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| Rate of Interest | Based on CMR Rank and Rate of Interest.
Presently Repo rate is 5.25% and Prime Spread is 2.70% |
| Charges to be recorded at the time of disbursement. | Ø Processing Charges: Nil
Ø Documentation Charges: Nil Ø CIBIL Charges: Rs.30 Ø Commercial CIBIL Charges : Rs.805 Ø NESL e-sign and e-stamp charges: As applicable according to the state act, if documentation is executed digitally through NESL. |
| Documentation | Ø Sanction Ticket
Ø Key Fact statement Ø Loan Agreement – D 36 Ø Hypothecation Agreement – D 101 Ø Declaration F – 82 (applicable for Proprietorship firm only). |
| Prepayment/ foreclosure | Ø The loan may be prepaid / foreclosed at any point of time within the repayment tenor
Ø No prepayment/foreclosure charges to be levied. |
| CGTMSE | CGTMSE coverage is mandatory and Credit Guarantee fee will be borne by Bank. |
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