4.Rejection of applications not to be done without the approval of the next higher authority
Photo of Borrowers : Free of cost for weaker section
Collaterals are not require up to 100 lac.
Composite loan up to 100 lac through single window.
Specialised financing branches renames as SME branches.
Norms for computation of limits up to 5.00 crore working capital by turnover method.10.Where CGTMSE guarantee coverage has not been taken, Securitycoverage in case of loan above Rs.10.00 Lac will be based on theRisk Rating status of the borrower AB-1
2.00:1METHODOLOGY FOR CALCULATION OF BANK FINANCE-
W C limit up to Rs. 5.00 crore to be computed on the basis of min20% of estimated annual turnover ( T/O method ),
Incase of borrower applying for W C limit higher or lower thanthe W C computed as above, shall be assessed as per actualrequirement,
For W C requirement above Rs.5.00 crore, traditional method of computing MPBF as per 2nd method of lending to continue.TERM LOAN FINANCE—Some important points— •Cash flow statement will be required from the clients, seekingfresh term loan.•Actual availability of cash is considered towards repayment of the term loan.•Apart from computing DSCR, it is suggested to observe theexpected cash surplus•Projected closing cash balance at the end of each year must be atleast 50% of proposed repayment of installment of termliabilities for the respective year.