Target group


Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc established as Proprietorship / Partnership firms, Limited Companies


  • Engaged in the business line at least for the last 3 years
  • Having Audited Financial Statements
  • Entry level credit rating should be SBS 5. No deviation to be considered.



For meeting working capital needs

Nature of facility


Line of Credit by way of fund based working capital limit, Bank Guarantee/ letters of credit


Quantum of Limit


Minimum Rs.10 lacs and Maximum Rs.500 lacs

Appraisal of loan

  • 30% of last two years average turnover.
  • Of this, 2/3rd will be used for Fund Based facility and 1/3rd for Non-fund based facility such as BG/LC.



Minimum 20% for fund based facility. Though the limit will be treated as unsecured, contractors will have receivables which should be charged to the Bank and a margin of 20% maintained thereagainst.

Minimum 15% cash margin for non-fund based facility


Rate of Interest

As per prevailing rate of interest structure in terms of HOBC:104/94 dt. 15-11-2010

No collateral security/third party guarantee to be obtained.

Processing Fee, Documentation charges, Commitment charges etc


For accounts falling within regulatory definition of MSME : In terms of HOBC : 102/218 dt. 20-03-2009. (MSME accounts within regulatory definition are exempt from commitment charges)

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.



Primary :

  • First charge on the unencumbered assets of the company/firm both current and fixed assets.
  • Margin on non fund based limits.

Collateral :

Suitable collateral to be obtained so that asset cover of 1.50 is maintained.