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Star MSE Term/Demand Loan

 
Target Group Micro & Small Enterprises in rural, semi urban, urban and metro branches
Type of Loan Demand/Term Loan
Purpose Purchase Plant & Machinery/Equipment/Other Moveable Assets.
Quantum of Loan
For units located in Maximum Amt of Loan
Rural Areas Rs.5,00,000/-
Semi-urban Areas Rs.10,00,000/-
Urban Areas Rs.50,00,000/-
Metro Areas Rs.100,00,000/-
Margin 15%
Rate of Interest

Note:
I-Term Loans under the scheme will not attract term Premium as approved by ED/26.07.2010

II-ROI is linked to Base Rate (Floating).
Limit ROI Maximum Amt of Loan
Upto Rs.50,000/- 10.20% I-Concession of 0.50% in ROI on account of CGTMSE Guarantee cover has already been factored. II-No other concession including those meant for Priyadarshini, SME rating etc., will be extended under the scheme. III-No further account specific concession to be considered.
Above Rs.50,000/- upto Rs.5,00,000/- 11.20%
Above Rs.5,00,000/- upto Rs.10,00,000/- 12.20%
Above Rs.10,00,000/- upto Rs.100,00,000/- 12.95%
Repayment

Loan is to be repaid in maximum 5 years with a moratorium of 3 to 6 months to be determined on the merits of each case.

Security

1. Hypothecation of Assets created out of bank finance as well as existing unencumbered assets of the MSE unit.
2. Equitable Mortgage of Land/ Land & Building which is part of the business activity such as business premises.
3. Guarantee Cover under CGTMSE Guarantee Scheme.

No collateral security/third party guarantee to be obtained.
Processing Charges
Limit Processing Charges
Upto Rs.1,00,000/- Rs.500/-
Above Rs.1,00,000/- upto Rs.5,00,000/- Rs.1,000/-
Above Rs.5,00,000/- upto Rs.10,00,000/- Rs.1,500/-
Above Rs.10,00,000/- upto Rs.50,00,000/- Rs.5,000/-
Above Rs.50,00,000/- upto Rs.100,00,000/- Rs.10,000/-
Documentation
  1. Demand Promissory Note.
  2. Deed of Hypothecation CHA 1/CHA 2 as the case may be..
  3. Installment Letter.
  4. Documents for fulfillment of KYC norms.
  5. Other connected documents applicable for Demand/Term Loans as per extant guidelines.
  6. Equitable Mortgage as Primary Security wherever applicable.
Processing
  1. Simplified Application cum Proposal Forms given in the annexure to be used.
  2. Turnaround time for sanction of limits upto Rs.5 lacs will be 5 working days and for limits above Rs.5 lacs, 7 working days after all relevant information is obtained.
Implementing Agency The scheme will be implemented directly by the Bank. No outside agency whether Government or otherwise will be involved in the implementation
Classification Advance under this scheme will be classified MSME advance with Sector Code 32, Scheme Code (New Code being allotted) and Special Category Code from 150 to 173 depending upon the original cost of investment in plant & machinery/ equipment. BSR Code will depend upon the activity.