Purpose & Nature of Facility

Term Loan mainly for purchase of equipment/machinery

Loan Amount

Loan amount shall not exceed Rs. 100 crores (for guarantee coverage)

Note: Project cost could be of any amount, however, minimum cost of equipment/machinery must be 75% of project cost.

Based on the above, loan quantum may also exceed Rs. 100 Crores, however, guarantee coverage will be available only up to Rs. 100 Crores.

Eligible Borrower

(i) The borrower should be an MSME with valid Udyam Registration Number.

(ii) The borrower should not be an NPA with any lender.

(iii) Minimum cost of equipment /machinery is 75% of project cost.

Rate of Interest

Rate of interest as applicable to MSME enterprises as per extant norms.

Margin

25% of the cost of Equipment/Machinery

Security

Primary Security: Hypothecation of assets created out of Bank finance.

Collateral Security: As per extant norms/policies. FMV will be considered while obtaining collateral security.

Repayment

Loan up to Rs. 50 crore under the Scheme shall have repayment period of up to 8 years with up to 2 years moratorium period on principal instalments.

For loans above Rs. 50 crore, higher repayment schedule and moratorium period on principal instalments can be considered.

In case loan amount exceeds Rs. 100 crore, two different repayment schedules will be drawn (one for Rs.100 crore loan and the second for balance amount of loan), repayment schedule shall be pro-rata and receipts/repayments will be distributed proportionately.