Author: sanjeevn

b. For outright purchase of ready built / existing office premises or premises under construction in commercial complexes / independent buildings and construction of office premises in the land already owned OR for purchase of site/ land and construction of office premises thereon.

c. Where loan is for purchase of site/ land and construction of office premises, value of the land shall not exceed 50% of the total project cost.

d. Loan for purchase of office furniture & fixture, solar water/ electricity systems shall be considered only for the office premises acquired under the Scheme.

e. In case of ready built property the age of the property shall not be more than 30 years (i.e. at the time of sanction of loans). Further, the residual life of the property should be at least 10 years more than the repayment tenor of the loan (Certificate of Residual age of the security to be obtained from empanelled valuer prior to sanction of loan).

f. Loans for repair/ renovation/ improvement/ extension of Office premises may also be considered against the security of Office premises or any other immovable property /other financial assets after maintaining prescribed margin on respective security

No other collateral security should be insisted upon, other than the primary security. All Eligible Loans up to Rs 2.00 Crores can be covered under CGTMSE. Hybrid model of CGTMSE may also be utilized. Payment of annual guarantee fee, claim procedure, etc to be ensured as per extant guidelines.

Property Location Rural Centres Semi urban Centres Urban Centres Metro Quantum of loan Rs 10 lac Rs 50 lac Rs.2 Crore Rs.5 Crore However the loan amount is determined on the basis of financial viability and income / repayment capacity of the professional concerned.

➢ Uniform margin of 35% on Cost of Construction/Purchase consideration [the agreement value inclusive of stamp duty/ registration, etc.]

➢ 40 % for furniture and fixtures etc. [Only if office premises is acquired under the scheme]

➢ Where loan is for purchase of site/ land and construction of office premises, value of the land shall not exceed 50% of the total project cost.

• SC/ST and/or woman entrepreneurs, above 18 years of age.
• Loans under the scheme are available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
• In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
• Borrower should not be in default to any bank/financial institution

The loan is repayable in 7 years with a maximum moratorium period of 18 months.

·        Proprietorship, partnership concerns (including LLP), Limited Companies etc belonging to Micro and Small Enterprises.

·        Units should have in place all necessary statutory approvals / NOCs from respective authorities.

·        All new as well as existing accounts can be covered under this scheme.

·        Credit Rating of the borrower should not be below UBI-5 in case of new connection and UBI-4 in case of takeover advances

Repayment period Working Capital – One year / Term Loan – Maximum 84 months including moratorium period of maximum 12 months

·        In case the exposure is covered under CGTMSE, no collateral security is to be obtained upto Rs.100.00 lacs.

·        In cases where the exposure is not covered under CGTMSE, minimum collateral as acceptable to the Bank to be as under

In case of Working Capital only: Minimum 25% of the loan value.
– In case of Term Loan for purchase / construction / renovation of shops / godown: Minimum 15% of the loan value.
– In case of composite loan (Both working capital and term loan): Minimum 15% of the loan value

Maximum: – Rs.500.00 lakhs (in cases where the bank is having tie up with vehicle manufacturer)

Rs.200.00 lakhs (where the bank is not having tie up with vehicle manufacturer)

Above Rs.2.00 Lakhs to Rs.500.00 lakhs

Additional interest

Rate of interest is inclusive of Tenor premium for account having tenor period upto 36 months. However, if the tenor period is beyond 36 months and upto 60 months additional interest of 0.25% over and above the ROI as mentioned above to be charged to borrower.

Repayment will be in form of Equated Monthly Installment (EMI) with Maximum up to 60 months including moratorium of maximum 3 (three) months in case of HCV/HMV only, since additional time is required for body/trailer building. In case of LCV/LMV 1(one) month moratorium to be given.