Andhra Bank

Term Finance

Purpose

For setting up new units/ Increasing the capacity of existing units/ Diversification/Modernization.

Assessment of limit

Based on Technical viability and economic feasibility of the project to service the debt

Components eligible for finance

Land, Building, Plant & machinery and other fixed assets with suitable margins.

Security

Primary: First charge on assets created out of Term loan.

Collateral: No collateral for credit limits upto Rs.10 lakhs in case of stand alone Term loan/Composite loan.

For credit limits above Rs.10 lakhs as per guidelines of the Bank

Co-obligation/ Guarantee

No third party guarantee for credit limits upto Rs.10 lakhs in case of stand alone Term loan/Composite loan.

For credit limits above Rs.10 lakhs as per guidelines of the Bank

Repayment

5-7 years excluding holiday period.

In case of schemes formulated by RBI/ Govt.of India the repayment schedule shall be as per the schemes formulated.

Standby Term Loan

Purpose

For acquiring additional machinery like, Lathe machines, Generator, Balancing equipment,Vehicles etc

Eligibility

“A” and above rated MSME borrowers satisfying the availability of long term funds for repayment of the loan

Quantum of finance

20% of the Fund based limits(Term loan & Working capital) subject to a cap of Rs.20 lakhs

Security

Primary: Assets to be purchased out of the loan
Collateral: Existing collateral securities continue

Co-obligation/ Guarantee

Existing Co-obligation/third party guarantee continue

Validity

The sanction will be in force upto due date of regular working capital limits, where working capital limits are existing or For a period of one year from date of sanction in case of stand alone Term loan

Repayment

Maximum 5 years repayable in Monthly/quarterly installments