An Area Specific Scheme for financing MSMEs engaged/proposed to engage in Manufacturing of Pharmaceuticals, API (Active Pharmaceutical Ingredients) & API Intermediate) /Trading of Pharmaceuticals (Wholesale/Retail/C&F Agents

Nature of Facility

Working Capital Limits (Fund Based and Non-Fund Based)
Term Loan

Purpose

“To provide credit for business requirement of MSME borrowers (as defined under MSMED Act 2006 with further revision in definition of MSME effective from 01.07.2020, as per Gazette Notification dated 26.06.2020 with relevant modifications communicated subsequently), by way of Fund Based/Non Fund Based Limits and Term loans to borrowers engaged/proposed to engage in Manufacturing of Pharmaceuticals, API (Active Pharmaceutical Ingredients) & API Intermediate/Trading of Pharmaceuticals (Wholesale/Retail/C&F Agents)”

Target Group

To Micro Small and Medium Enterprises engaged in manufacturing of Pharmaceuticals, API & API Intermediate/Trading of Pharmaceuticals (Wholesale/Retail/C&F Agents) (as defined under MSMED Act 2006 and complying with the revised definition of MSMEs effective from 01.07.2020, as per Gazette Notification dated 26.06.2020 of MoMSME with relevant modifications/clarifications communicated subsequently in such regard).

Quantum of loan

Minimum : Above Rs. 10.00 Lakhs
Maximum : Rs. 50.00 Crores
In case of Traders: For Working Capital: Maximum Cap is Rs.10.00 Crores.

Security

Primary:
"Primary security" in respect of a credit facility shall mean the assets created out of the credit facility so extended (movable & immovable assets).
"Primary security" has to be invariably encumbered to our loan.

Collateral Security:
"Collateral security" means the security provided in addition to the primary security, and can be in the form of properties (land/land and building) and/or approved financial securities.

CGTMSE Coverage

Not eligible under the said scheme.

Processing Charges

The following concession in Upfront fee, Processing Charges, Commission on NFB limits, TEV/Project appraisal charges and Commitment Charges may be extended to the borrower:

Rating of the Borrower	% Concession in the applicable charges
Low	50%
Normal	25%
Moderate	Nil

Repayment

Working Capital: Tenable for One year.
Term Loan: Repayment period up to a maximum of 10 years including moratorium.
Maximum Moratorium: 2 Years.

Margin

Term loan -20% of the hard cost of the Project Cost
Fund Based Working capital – Against Stocks & Book Debts: 25%.
Export limits: Pre Shipment : 10%, Post Shipment: Nil
NFB – 15% (as per extant guidelines)

Scheme shall be applicable PAN India. However, the scheme shall presently be implemented in the following Circles:

Ahmedabad Circle
Bhopal Circle
Chandigarh Circle
Karnal Circle

Eligible Individuals/Proprietary Concerns, Partnership Firms (other than Partnership Firms where HUF is a Partner)/ Company / Traders/ Businessmen/LLPs may be considered under the scheme.
MSMEs should be registered in UDYAM portal and should have valid Udyam Registration Certificate.
Borrowers with SMA1 or SMA2 during the last Year (i.e. last 12 months) in respect of liabilities with our/Other Banks/FIs as per credit bureau report are not eligible. However, Credit Card Overdue shall be exempted under the scheme.
Defaulters (NPA) with any lending institution may not be considered under the scheme.
The Scheme shall be applicable for accounts risk rated up to Moderate Risk /BB only as per the applicable Risk rating models.
CIBIL MSME Rank (CMR) guidelines shall be applicable as per extant guidelines.
Switchover of existing accounts to the said scheme shall not be permitted.

Customer Identification proof along with NF998 MSME application.
Address Proof of unit and promoters.
License/permissions.
Financial papers for the last 3 years with ITR and projections.
Details of Guarantor with proof of assets.
Stock Statement.

Rate of Interest is linked to the value of security/approved collaterals, Internal and External Risk Rating/Grade.

Penal interest of 0.25%/0.50% may be chargeable as the case may be, from previous sanction to current renewal period, in case of lesser turnover routed through the account.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.