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1.
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Purpose/Objective |
To provide hassle free credit to meet working capital requirementsrelatedtobusinessactivityorforexpansionof business.
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2.
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Eligibility
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a) Business entities which are individuals, firms, companies,Limited Liability Partnership, co-operative societies, dealingin those business activities, whicharenotprohibitedbylaw.
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b) GSTregisteredunitswhichhavefiledGSTreturnsatleastforthe last six months. Branch needs to ensure onlineverificationofGSTreturnsubmittedbythecustomerforitsAuthenticity.
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3.
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Typeoffacility
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CashCredit
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| 4. |
LoanAmount
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Above ₹10.00 Lakh to ₹ 100.00Lakh.
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| 5. |
AssessmentofLoan |
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a) MPBF for Cash Credit Facility shall be allowed based on 25% of the sales reported in the GST returns in the last one year (last 12months).
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b) WhereverGSTreturns havebeenfiledforlessthanoneyear,MPBFshallbearrivedbasedon25%oftheannualsalesafter annualizing GSTreturnsfiledforthatperiodprovidedcustomerhasfiledminimumGSTreturnsofthelast6months.
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(Method of assessment of loan under the scheme is annexed as Appendix-I and the same shall form part of the appraisal note)
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| 6. |
Margin
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Not stipulatedforarrivingMPBF.
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| 7. |
BenchmarkRatio
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Nospecificbenchmarkratioisstipulatedasthereis no requirement of submitting financial statement undertheScheme.
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| 8. |
Tenureof Loan
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One Year. However,limit shall be renewedeveryyear.
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| 9. |
PrimarySecurity
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HypothecationofassetscreatedoutoftheBankfinancealongwithentirecurrentassetsandnon-currentassets(Present&Future) oftheunitshall be ensured. |
| 10. |
CollateralSecurity
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a) Minimum 100%CollateralsecurityintheshapeofSARFAESI compliant immovable property or Bank approved liquid security.
Forimmovable property, Realizable Value shall be taken ascollateral value. For NSCs/KVPs/ FDR/CDR, Accrued Valueand for LIP, Surrender Value shall be taken as collateralcoverage.
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b) Guarantee of owner of property shall be obtained invariably in case of security standing in the name of third party.
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| 11. |
Rate of Interest
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As per Bank’s guidelines.
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| 12. |
Collateral Linked Concession
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Collateral Linked Concession:
Concession shall be linked as per collateral security as under:
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SecurityCoverage
(%of TotalExposure)
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Concession inApplicableInterest Rate
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Above 100% and up to
150%
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0.75% |
| Above 150% |
1.00% |
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b) Guarantee of owner of property shall be obtained invariably in case of security standing in the name of third party.
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| 13. |
ProcessingFee
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As per Bank’s guidelines.
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