Eligibility

• Existing MSME borrowers under Sole Banking/ Multiple Banking/ Consortium arrangements with good track record and whose existing credit limits are sanctioned by Branch/RO/CO are eligible after satisfactory completion of 12 months from the date of first disbursement.

• The customer must have a valid Udyam Registration Number.

• All accounts of the borrower should be regular, standard and performing as on the date of sanction.

• Accounts under SMA1 & SMA2 category in last 6 months are not eligible.

Purpose

• Term loan for purchase of Plant and Machinery and Equipment.

Loan Amount

• Maximum - Rs. 2.00 crore

Margin

• Minimum 20%

CIC Report

• Minimum CIC score is>=700 for all the Partners/Directors/Proprietor.

• Applicants having CIC score "-1" or NTC scores are also eligible under the scheme.

• CIBIL MSME Rank should be CMR-5 and above i.e. CMR-1, CMR-2, CMR-3, CMR-4 and CMR-5.

Rate of Interest

• Applicable interest rate for MSME advances as per the circular in force.

Security

Prime:

• Hypothecation of assets created out of loan.

Collateral:

• Existing collateral securities to be extended for the fresh loan or the loan to be covered under CGTMSE scheme if existing collateral security is not adequate to cover the loan under this scheme.

• Suitable Collateral securities may be obtained for the fresh loan, if borrower is not willing to cover the loan under CGTMSE.

Repayment Period

• Maximum repayment period of 72 months.

• Maximum moratorium period up to 03-06 months from first disbursement in case machinery is procured locally and up to 09-12 months in case of import of machinery.

Other Conditions

• Financing of second-hand machinery/equipment is not permitted under the scheme.

• Credit facilities, where Partners/Directors/Proprietor CIC is 680 to 699 can be sanctioned by RLCC & above.