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Nature of Facility Term Loan Only
Purpose Purchase of Earth moving, construction and mining operation equipment from BEML
Target Group Earth moving contractors, Railway, Road and Canal work contractors etc. and Business Units other than trusts, who want to avail loan facility for manufacturing and services activities.
Quantum of loan Minimum – 20 Lakhs
Maximum – 300 Crores.
Margin Loan up to 100 Lakhs – 15%
Loan above 100 Lakhs – 20%
85% or 80% on road price of the equipment/vehicle
Repayment Period Maximum Repayment period of 5 to 7 years repayable in EMI.
Security

    New customers:

    A) From ₹20.00 Lakhs and up to 200.00 Lakhs: Loans covered under CGTMSE:

    • Proprietor, Partners and Directors shall be taken as guarantors without fail.
    • Hypothecation of equipment’s/ machinery / vehicle purchased / assets created out of Bank finance.
    • No collateral security and/ or third party guarantee shall be obtained.
    • B) For loans not covered under CGTMSE: In addition to primary security, minimum 75% collateral security in the form of mortgage of immovable property/ Financial Securities (Such as TD with the Bank /NSC/ KVP/ SV of LIC policy/ RBI relief bonds/ Government/Trustee Securities/IVPs) shall be obtained.

      For Existing Customers:

    • Suitable decision regarding collateral security based on satisfactory dealings/credit history of the customer will be taken.
Coverage All eligible loans to be covered under CGTMSE/CGFMU.
Processing Charges As per Extant Guidelines
  • 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.
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Last updated on 03-12-2024 03:11 PM

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