| FINANCIAL ASSISTANCE:
The growth of SME units largely depends on their proper financial management. They should closely monitor their funds flow and cash flow at every stage to avoid mismatch, which will dampen their operational activities. Our Bank provides total financial solutions to SME units by way of various schemes to support the financial needs of SME units.
Term Loan:
Term Loans are extended for the purpose of acquisition of fixed assets. viz., land, building, plant and machinery for setting up of new industrial units or expansion/modernisation of existing units Financing for the purchase of second hand machinery (both indigenous as well as imported) can also be considered subject to certain conditions .
Margin:
Bank will normally finance upto 75% of the value of fixed assets and the balance amount should be brought by the applicant as margin. However depending upon the activity and quantum of advance the bank may either increase the margin or decrease the margin.
Security / Third Party Guarantee:
Bank will not insist for collateral security / Third Party Guarantee for total credit limits upto Rs.5 lakhs for SME borrowers. In respect of credit limits above Rs.5 lakhs and upto Rs.25 lakhs Collateral Security / Third Party Guarantee may be waived for deserving cases and those limits will be covered under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
Repayment:
The repayment of term loan will be fixed based on the cash generation of the unit and gestation period. Suitable holiday period will be allowed for repayment of the term loan.
Interest Rates:
The details of interest rates for various categories of SME advances are available separately.
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