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MSME

Target

 

Educational institutions i.e Universities, Colleges and Schools

 

Eligibility

 
  • The institutions must have got necessary approval from Government/Government agencies for running the educational insitutions
  • They should submit 3 years audited financial statements
  • They should be profit making for continuous 2 years
  • New and upcoming educational institutions can also be considered in which projections, both financial and non-financial, must be reasonable and justifiable
  • Entry level credit rating is SBS 5. No deviation to be allowed.
 

Purpose

 
  • Construction, repair and renovation of building, purchase of Furniture & Fixtures and Computers.
 

Facility

 

Term Loan

 

Quantum

 

Minimum Rs. 10 lakhs, maximum Rs. 500 lakhs

 

Margin

 

Minimum 20%

 

Rate of Interest

As applicable

 

Security

 

Primary :

  • Hypothecation of assets, if loan is considered for machineries/equipments
  • Mortgage of land & building over which construction is proposed
 

Collateral :

Suitable collateral to be obtained so that minimum Asset Cover of 1.50 is available. Guarantee of key person/promoter/trustee must be taken

 

Repayment Period

Term loan to be repaid in maximum 8 years inclusive of initial moratorium of 12 to 18 months. Periodicity of instalment to be determined on the basis of cash flow

 

Processing & other charges

As applicable