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Union Bank of India

Union MSME Suvidha

Bank Union Bank of India
Scheme Union MSME Suvidha
Description • To meet need based working capital (Fund Based & Non-Fund Based) requirement for Business Activity.
• Term Loan for own business use, which is detailed as under:
• Purchase/ Construction / Renovation of Business Premises, Factory / Offices / Shop / Godown / Plant & Machinery / Equipment etc for business activities areeligible.
• Purchase of equipment like Computers, air-conditioner, furniture & fixtures and other fixed assets like commercial vehicles forbusiness.
• Any other purpose whereby asset is created out of Bank’s finance for the purpose of running the business.
Eligibility All units engaged in the Manufacturing/ Services/ Trading activity, eligible to be classified under MSME.
Rate of Interest & Repayment Repayment:

Working Capital: On Demand.
Term Loan: As per Loan Policy, the maximum period for repayment of term loan shall normally be 84 months (including moratorium), except for projects with longer gestation periods, infrastructure projects etc. Hence, the maximum door to door repayment period shall be limited to 7 years including maximum moratorium period of 12 months.
Interest to be recovered during the moratorium period. Working Capital: On Demand.
Term Loan: As per Loan Policy, the maximum period for repayment of term loan shall normally be 84 months (including moratorium), except for projects with longer gestation periods, infrastructure projects etc. Hence, the maximum door to door repayment period shall be limited to 7 years including maximum moratorium period of 12 months.
Interest to be recovered during the moratorium period.

Collateral  
Composite /loan Limit Min: Above Rs.10 Lakh
Max: Up to Rs.50 Crore with TL restricted upto Rs. 10.00 crores in case of Trade accounts.
Also, exposure below Rs. 10.00 lakhs sanctioned previously may be continued till the closure of limit / loan.
Margin
FBWC 20% [Stock (excluding dead stock) & book debtsaged up to 90 days]
NFBWC 25% (Cash/ FDR Margin)
Term Loan Plant & Machinery / Equipment: 25%
Detail Link  
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