Target Group

Existing MSME Business enterprises engaged as Solar vendors/Channel Partners/Sub-Contractors registered with MNRE, handling execution of Residential Solar Power Projects.

Purpose

To extend Bank finance on easy terms to the target Group.

Eligibility

1.   The Solar Vendor/ Channel Partner/Sub-Contractor should be registered with Ministry of New & Renewable Energy (MNRE)/DISCOM. Blacklisted vendors on MNRE site shall not be eligible. List of backlisted vendors is available on Ministry of New and Renewable Energy (mnre.gov.in).

2.   The registered Solar Vendor/Channel Partner/Sub-Contractor should have vintage of at least 6 months of registration and should have handled at least 10 projects in the preceding 6 months period.

3.   Solar Vendor should have the valid 'Udyam Registration Certificate' and registered with GST.

4.   CIC Score of all Promoters should be a minimum of 680. Wherever the promoters have NIL credit history, even CIBIL Score of "-1" on account of this reason is considered acceptable and may be permitted.

Type of Facility

Working Capital (fund based/non-fund based) under Sole Banking only. Banking under MBA is not permitted under the facility.

Quantum of Finance

Minimum: Rs. 10.00 Lakhs

Maximum: Rs. 5.00 Crores

Margin

25% on stocks;

and 25% on receivables (receivables only from institutions/firms) for a period of 90 days;

Primary Security

Hypothecation of Stocks & Receivables.

Credit Guarantee

• All loans to be covered under CGTMSE.
• Annual Guarantee fee to be borne by the borrower.

Interest Rate

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

Processing Fee

0.50% of the loan amount plus GST @ 18%

Insurance

Comprehensive insurance cover as per extant guidelines.

Other Conditions

• URN Registration is mandatory to avail loans under the scheme.
• Undertaking to be furnished by Vendors for routing of entire sales turnover through the loan account.
• The Quotation/Invoice of the Solar Vendors must contain the Cash Credit Account No., IFSC of the lending Bank with clear instructions in the invoice that the proceeds of the invoice must be remitted to the Cash Credit Account only.