| Purpose |
For working capital needs of MSME units |
| Assessment of limit |
Depending on the Working capital requirement of the unit assessed as per Turnover Method/ MPBF System/ Cash Budget System
Drawings from the account shall be against Drawing limit arrived based on Stocks such as Raw materials, work-in-process, finished goods and Book debts/ receivables not older than 180 days with sub limit under cash credit limit |
| Minimum Margins |
20% to 25% in case of Stocks and 30% in case of Book debts/ Receivables not older than 180 days. |
| Security |
Primary security: Stocks and receivables
Collateral security:
Upto Rs.5 lakhs : Nil
Above Rs.5 lakhs Land &
Buildings, Plant & Machinery,
other fixed assets as per Bank
norms. |
Co-obligation/
Guarantee |
Upto Rs.5 lakhs : Not required
Above Rs.5 lakhs : Suitable Third party guarantee as per Bank norms. |
| Repayment |
Limits are renewable every year |
| Guarantee |
d) Up to Rs.5 lakhs are covered under CGTMSE.
e) Loans above Rs.5 lakhs and upto Rs.100 lakhs can be covered under CGTMSE subject to no collateral security and third party guarantee.
f) Guarantee fees and Annual service fees of CGTMSE have to borne by the borrower
|
| Eligibility |
Existing MSME borrowers having overall fund based credit facility upto Rs.10 crore |
| Purpose |
To meet need based adhoc working capital requirement |
| Quantum |
20% of the existing fund based limit |
| Margin |
Same as existing margins to present working capital limits |
| Security |
Primary: Stocks and receivables
Collateral: Continuation of existing collateral securities |
Co-obligation /
Guarantee |
Continuation of existing Co-obligation/Guarantee |
| Repayment |
One year with a provision of moratorium of six months, during which only interest will have to be serviced. |
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