STAR SME CONTRACTOR CREDIT

For meeting working capital needs

Target group

Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors etc established as Proprietorship / Partnership firms, Limited Companies

Nature of facility

Line of Credit by way of fund based working capital limit, Bank Guarantee/ letters of credit

Quantum of Limit

Minimum Rs.10 lacs and Maximum Rs.500 lacs

Security

Primary

• First charge on the unencumbered assets of the company/firm both current and fixed assets
• Margin on non fund based limits

Collateral

• Suitable collateral to be obtained so that asset cover of 1.50 is maintained.

Insurance

Assets charged to the bank to be comprehensively insured covering various risks including civil commotions and riots. The policies should be renewed from time to time and copy retained on branch record. Bank’s interest to be got noted in the insurance policy. Separate insurance policy to be obtained for the mortgaged property