All existing SME units, as per new definition, run by Individuals, Proprietorship / Partnership firms, Limited Company, Trust, Society
The unit / borrower should have sufficient net worth/source of funds to pay for the margin and initial recurring expenses. Conduct of the existing account must have been satisfactory.
Entry level credit rating should be SBS 5. No deviations to be allowed in entry level norms.
To purchase transport vehicles for delivering their products / Services. Educational institutions also eligible for transport vehicles for providing transportation services to students / faculty / staff. Only new vehicles will be considered. Second hand vehicles not permitted under the scheme.
Chassis + Body building costs + registration , insurance , road tax, accessories AMC etc.
To be repaid in 84 equated monthly installments inclusive of moratorium of maximum 3 months.
The economic viability should be worked out as per the overall income generated and surplus for loan installment / interest payment from the existing business operation of the unit.
Average DSCR should be minimum 1.25.
Margin will be 20% of the cost of vehicle on road (chassis, body building and initial insurance, registration ,Road Tax & AMC).
The rate of interest shall be applicable to existing credit rating of the account as well as aggregate credit limit arrived at after clubbing proposed finance for vehicle .
|For accounts falling within regulatory definition of MSME :
In terms of HOBC : 102/218 dt. 20-03-2009.
|For accounts not falling within regulatory definition of MSME but within the new definition of SME :
In terms of HOBC: 102/119 dt.19-09-2008.