Objective

To provide assistance to the industries/units engaged in similar business activity under a particular geographical area.

Nature and
Purpose of
Advance

Term loan for capital expenditure / LC for purchase of machinery & Cash credit facility against stocks/book debts, BG, LC

Quantum of Loan

No Minimum & No Maximum

Identified Cluster

• Cotton
• Coconut
• Paddy
• Wheat
• Chilly
• Cold storage
• Mango
• Poultry
• Tea
• Sunflower
• Pulses
• Tobacco
• Tapioca

Eligibility

Project should generate sufficient income such that loan can be repaid from the financed activity, without relying on other income.

The projects/ activities considered under the scheme should have all requisite permissions/ licenses/ approvals from competent authorities wherever applicable

Security

Up to Rs. 2.00 Lakhs

Prime security:

Hypothecation/mortgage of assets created out of bank finance.

Collateral Security: Nil

Above Rs.2.00 Lakhs

Prime Security:

Hypothecation/mortgage of assets created out of bank finance.

Collateral Security:

The credit facility should be fully secured by liquid assets such as Life Policies of LIC of India and private companies approved by IRDA, NSC/KVP etc. and / or immovable property or deposits.

While fixing the value of the immovable property provided as security Fair Market value of the property is to be considered.

Overall collateral coverage should not be less than 100% of the loan amount.

However, RLCC and above committees can sanction credit facilities with less than the above stipulated value of collateral security to the best of their judgment and risk perception with due justification.

Margin

Up to Rs. 2.00 lakhs - Nil 

Above Rs. 2.00 lakhs -

Minimum 20% irrespective of the quantum. However, lower margin can be prescribed as per the Delegation power issued from time to time.

For LC/LG: Applicable margin as per Loan Policy Document to be followed

Repayment

Maximum repayment period can be considered up to 10 years depending upon the repaying capacity including holiday period.

Holiday Period

Maximum holiday period will be 36 months

Rate of Interest

*3Month MCLR at 8.45%

Processing Charges

0.40% of loan amount +GST to be collected (FB & NFB).

Other conditions apply

*For more details, please contact our nearest branch