SME COLLATERAL FREE LOAN Details Eligibility

New and existing Micro and Small Enterprises engaged in Manufacturing and Service sector. For Manufacturing sector, original investment in plant & machinery should be upto Rs 5 crore and for Service sector, original investment in equipment upto Rs 2 crore.

Purpose
• Working capital needs (Fund Based+ Non Fund Based). • Term loan for construction of Building, office, acquisition of machines / equipments including expansion and modernization of the unit.

Facility
• Cash Credit • Term Loan • Letter of Credit • Bank Guarantee

Quantum of Finance
Total Exposure to the unit : Upto Rs. 1.00 crore (All facilities WC, TL & NFB facilities)

Interest Rate
Attractive rates of interest*

Service Charges
• concession in processing and service charges. • Other charges as applicable.

Security
• Primary Security:- • Assets created out of bank finance • Existing assets of the borrower as per definition of CGTMSE • No collateral • No third party guarantee

Repayment Period
• Working Capital (WC): One year, repayable on demand. Working capital limits will be renewed every two year. However, performance of the unit and conduct of account will be reviewed annually for continuation of limits. • Term Loan: Maximum Seven Years including moratorium period.

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