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MSME

 

Target Group

 
  • Manufacturers and suppliers of medical oxygen,Oxygen cylinders.
  • Existing Hospitals/ Nursing homes.
  • Borrower should be registered under MSMED Act.2006

Purpose

 
Term Loan:
  • Set up of oxygen plant with power back up in the hospital for medical use.
  • To finance units engaged in manufacturing of liquid oxygen, oxygen cylinders etc.
  • Non-Fund (Letter of credit)
  • LC: For Capex LC (front ended): For import of Capital Goods

Quantum of loan

 

Overall exposure including Term Loan and LC should not exceed Rs.2 Crs.

Margin

 

Term Loan for setting up of Oxygen Plant:

In case of existing customers 100% financing can be considered with Nil Margin

In case of New to Bank Customers, 15% margin. Margin may be waived

  • If Guarantee Cover is offered by the Government in lines with the ECLGS.
  • Hospital agrees to maintain escrow a/c for capturing cash flow.
  • The manufacturer is having a firm buying agreement from Govt/hospitals and agrees to maintain the escrow A/c.

Rate of Interest

 

RBLR +0.65% presently effective 7.50% (if Guarantee scheme on the line of ECLGS is available)

RBLR +1.30% presently effective 8.15% (if covered under CGTMSE)

Primary Security

 

Hypothecation of the assets financed by the Bank (Current assets, Fixed assets, consumables, debtors). In case of Multiple Banking/ Consortium, Loan facility shall rank pari-passu with the existing credit facilities, in respect of underlying security as well as cash flows for repayment.

Collateral Security

 

Loans to be covered under CGTMSE.

RepaymentPeriod

 

Term Loan:

Maximum period of 5 years including moratorium period of 6 months.

LC:

On due date by debit to Term Loan.

Processing & other charges

 

Processing charges- Waived. All other charges as applicable to MSME accounts

 

Validity

 

Up to 31.03.2022