Individuals, partnership firms or companies engaged in the
manufacture / processing / preservation of goods (including ancillary
industries) whose total investment in plant and machinery does not
exceed Rs. 1 crore
Security :
Hypothecation of Plant & Machinery/Mortgage of Industrial Shed, any tangible asset owned by loan applicant/proposed sureties, having sufficient value commensurate with the amount of loan and which are easily marketable (immovable property, deposits, LIC policies, NSCs, KVPs, vehicles, etc.)
Sureties :
Two
Margin :
As mentioned under separate sub-heading herein
Amount of Loan :
Upto 75% of the project cost and subject to credit exposure limit
Rate of Interest :
As decided by the Board and HO circulars
Repayment Period :
Normally 5 years maximum. However, the repayment period may be
changed depending on the feasibility of the project / cash flows
Working capital limits :
May be allowed if found necessary
Other requirements :
Experience in the concerned line of activity.
Project Report/quotations/estimates, permission/license/approvals
from competent authorities like Health Dept., Water/Electricity Dept.,
Municipality/Panchayat, Pollution Control Dept. – wherever applicable
Proof of arrangements for marketing the products of the unit
Copies of B/S, P/L A/c, I.T. Returns for last 3 years in case of
already existing unit
Documentation :
Loan Application in the appropriate Form
Joint & Several Demand Promissory Note
Agreement for loan
Agreement for Mortgage/Hypothecation/Assignment of LIC Policies or any other tangible security acceptable to the Bank
Agreement for salary deduction u/s 49 of MCS Act if borrower/surety
is / are salaried persons
Triparty Mortgage deed involving IDC, if the unit is/is to be set up
in Industrial Estates set up by IDC
The financed unit/securities should be comprehensively insured
against all possible risks
Letter of Continuing Security (in Form L- 4) for OD / CC limits
Valuation of assets to be hypothecated/mortgaged
Any other relevant document depending on the purpose and security of
the loan
