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29 Apr 2023

SME open Term loan

Purpose : 

The main feature of the product is that the disbursal of limits need not immediately follow its sanction; but can take place at a point of time chosen by the borrowers subject to the same being within the currency of sanction. The borrower can avail the facility multiple times within the currency of sanction subject to the total utilisation being within overall sanctioned limit.

Any genuine commercial purposes in the same line of activity, with regular business, of the customer are funded.

Features

  • Target Group: ·
    • All units under manufacturing sector and;
    • Under Service Sector: Healthcare Industry (Hospitals, Doctors, Pathological Labs and Nursing Home), Hospitality Industry Hotels, Restaurants, etc), and Transport operators with minimum 25 vehicles
  • Quantum of loan (Min/Max): Both manufacturing and services sector enterprises: 25% of total limit sanctioned with a minimum of Rs 25.00 lakhs and maximum of Rs. 10.00 crores (For expansion, modernization, technology up-gradation and for the purpose of creation of tangible assets only).
  • Margin (%): 25%
  • Pricing: 
    • For MSMEs: As per the credit rating (CRA /CUE) of the borrower linked to EBLR.
    • For Non-MSMEs: As per the credit rating (CRA /CUE) of the borrower linked to 6 months MCLR.

  • Repayment Period : Repayment period not to exceed 8 years including a moratorium period.

  • Upfront Fee: 

    For all term loans other than Micro units:UpfrontUpfront fee (Excluding GST) fee (Excluding GST)

     CRA SB /CUE 1 to SB 4 

    0.90 % of the Loan amount

     CRA SB /CUE 5 to SB 7

    1.10 % of the loan amount

     CRA SB /CUE 8 to SB 10

    1.30 % of loan amount

     CRA SB /CUE 11 and below and Unrated  

    1.40% of loan amount

  • Eligibility

    • The product will be extended to existing customers having CRA rating up to SB-6/ CUE-6 and better or ECR of BBB (if available) and above.
    • However, in respect of customer banking with us for more than 5 years with satisfactory track record, i.e. the account has not slipped to category SMA-1 and below in the previous 12 months (irregular for 31 to 60 days) will also be eligible for finance under SME Open Term Loan subjected to 2) CRA rating of SB-8 / CUE-8 & better or ii) ECR of BB & above.

    Non-customers /Units not having borrowing arrangements with us shall not be eligible.