This loan helps businesses in the Micro, Small and Medium Enterprises sector purchase machinery or equipment required to run the business. Unsecure loans of up to Rs. 1 crore can be availed under this scheme. The maximum loan amount for this scheme is Rs. 20 crore.

Features of Maha MSME Project Loan Scheme

Why this Loan?

·        The Maha MSME Machinery/Equipment loan is meant for all types of businesses in the MSME sector who need financial assistance to purchase machinery/equipment

·        Unsecured loans of up to Rs. 1 crore can be availed under this scheme

Loan Amount

·        The maximum loan amount sanctioned for this loan is Rs. 20 crore

Interest

·        The interest rate for Bank of Maharashtra Loans is defined as the sum of three factors, namely: One-year Marginal Cost of Funds based Lending Rate (MCLR), Business Strategy Spread (BSS) and Strategic Premium

·        Loans up to Rs. 25 lakh: MCLR + BSS + Strategic Premium of 1.75%. As of April, the one year MCLR is 7.50% bringing the effective interest rate to 9.25%

·        Loans Above Rs. 25 lakh up to Rs. 5 crore: MCLR + BSS + Strategic Premium ranging from 2.00% to 5.00% based on the Internal Credit Risk Rating

·        Loans Above Rs. 5 crore: MCLR + BSS + Strategic Premium ranging from 2.00% to 5.00% based on the External Rating and Internal Credit Risk Rating

Note: Currently, the one-year Marginal Cost of Funds based Lending Rate (MCLR) is 7.50% and the Business Strategy Spread (BSS) is 0.25%. The Strategic Premium is different for each loan and depends on the loan amount and/or the Internal Credit Risk Rating and/or External Rating. Please check the Bank of Maharashtra website for the latest interest rates applicable on MSME loans.

Interest Concession

Bank of Maharashtra offers concession on the interest rate applicable to select MSME loans as an incentive for collateral securities.

·        Collateral Equivalent to 50% to 75% of Loan Amount: The reduction in rate of interest offered by the bank is 0.25%

·        Collateral Equivalent to 75% to 100% of Loan Amount: The reduction in rate of interest offered by the bank is 0.50%

·        Collateral Equivalent to more than 100% of Loan Amount: The reduction in rate of interest offered by the bank is 0.75%

Repayment

·        These loans need to be repaid within 7 years after the moratorium ends. You may have to check the moratorium period for this loan with the bank as the details are not mentioned on the bank’s website

Security Needed

·        The bank asks for hypothecation of assets purchased or created under the loan as prime security

·        The bank offers collateral-free loans up to Rs. 1 crore

Eligibility

·        This term loan is for businesses in the MSME category. As of now, the exact eligibility criteria is not available on the bank’s website. Please check with the bank for details

Borrower Contribution to Total Cost (Margin Money)

·        The bank charges a minimum of 25% of the total loan amount as margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing and Other Charges

·        As of October 2020, this information is not available on the bank’s website. We suggest you visit your nearest bank branch to get the requisite details

Documents Needed for Individuals

·        Loan Application Form duly filled and signed by the applicant and co-applicant, if any

·        Two Passport Size Photographs of applicant and co-applicant

·        Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issuing Letter is must

·        Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport

·        Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement

·        Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant

·        Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

Documents Needed for Proprietorship and Partnership Firms

·        Loan Application Form duly filled and signed

·        Partnership Deed and Partnership Registration Certificate

·        ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter

·        Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement

·        Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors

·        Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account

·        Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

·        Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Documents Needed for Private Limited and Public Limited Companies

·        Application Form duly filled and signed

·        Company ID Proof: Company’s PAN Card

·        Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement

·        Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change

·        Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate

·        Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account

·        Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

·        Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References