1. Purpose/Objective To provide hassle free credit to meet working capital requirementsrelatedtobusinessactivityorforexpansionof business.
2. Eligibility
a) Business entities which are individuals, firms, companies,Limited Liability Partnership, co-operative societies, dealingin those business activities, whicharenotprohibitedbylaw.
b) GSTregisteredunitswhichhavefiledGSTreturnsatleastforthe last six months. Branch needs to ensure onlineverificationofGSTreturnsubmittedbythecustomerforitsAuthenticity.
3. Typeoffacility CashCredit
4. LoanAmount Above ₹10.00 Lakh to ₹ 100.00Lakh.
5. AssessmentofLoan
a) MPBF for Cash Credit Facility shall be allowed based on 25% of the sales reported in the GST returns in the last one year (last 12months).
b) WhereverGSTreturns havebeenfiledforlessthanoneyear,MPBFshallbearrivedbasedon25%oftheannualsalesafter annualizing GSTreturnsfiledforthatperiodprovidedcustomerhasfiledminimumGSTreturnsofthelast6months.
(Method of assessment of loan under the scheme is annexed as Appendix-I and the same shall form part of the appraisal note)
6. Margin Not stipulatedforarrivingMPBF.
7. BenchmarkRatio Nospecificbenchmarkratioisstipulatedasthereis no requirement of submitting financial statement undertheScheme.
8. Tenureof Loan One Year. However,limit shall be renewedeveryyear.
9. PrimarySecurity HypothecationofassetscreatedoutoftheBankfinancealongwithentirecurrentassetsandnon-currentassets(Present&Future) oftheunitshall be ensured.
10. CollateralSecurity
a) Minimum 100%CollateralsecurityintheshapeofSARFAESI compliant immovable property or Bank approved liquid security. Forimmovable property, Realizable Value shall be taken ascollateral value. For NSCs/KVPs/ FDR/CDR, Accrued Valueand for LIP, Surrender Value shall be taken as collateralcoverage.
b) Guarantee of owner of property shall be obtained invariably in case of security standing in the name of third party.
11. Rate of Interest As per Bank’s guidelines.
12. Collateral Linked Concession Collateral Linked Concession: Concession shall be linked as per collateral security as under:
SecurityCoverage (%of TotalExposure) Concession inApplicableInterest Rate
Above 100% and up to 150% 0.75%
Above 150% 1.00%
b) Guarantee of owner of property shall be obtained invariably in case of security standing in the name of third party.
13. ProcessingFee As per Bank’s guidelines.