Bank of India Star Weaver Mudra Loan Scheme lso known as the handloom scheme, this loan helps weavers get the funds to meet their working capital and capital expenditure needs. The maximum loan amount is Rs. 5 lakh.

Features of Bank of India Star Weaver Mudra Loan Scheme

Why this Loan?

·        The loan is meant for weavers in the MSME sector get funds to meet their working capital and capital expenditure needs

·        The Bank of India Star Weaver Mudra Loan is extended as a working capital loan or term loan based on the needs of the borrower

Loan Amount

·        Working Capital (Cash Credit): The maximum loan amount sanctioned under this loan is Rs. 1 lakh

·        Term Loan: The maximum loan amount sanctioned under this loan is Rs. 2 lakh

·        Composite Loan: The maximum loan amount sanctioned under this loan as a composite scheme, Working capital + term Loan, is Rs. 5 lakh

Interest

·        The interest rate for this loan depends on three factors namely, one-year Marginal Cost of Funds-Based Lending Rate (MCLR), Business Strategy Spread and Credit Risk Rating of the borrower. Please check the bank’s website for details

Repayment

·        Working Capital Loan: This loan must be repaid within 12 months and can be renewed on an annual basis subject to terms

·        Term loan/Composite Loan: These loans need to be repaid within 7 years after the moratorium ends

Security Needed

·        The bank asks for hypothecation of assets created with the bank loan

·        The bank asks for CGTMSE coverage as security for this loan

Borrower Contribution to Total Cost (Margin Money)

·        Bank of India takes 20% margin for these loans

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank covers 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 Charges

·        The processing charges for this loan depends on the extant guidelines under the Pradhan Mantri Mudra Yojana (PMMY) set by the government

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