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

*Terms & Conditions apply. For further details, Please contact your Nearest Branch

• Engaged in the business line at least for the last 3 years
• Having Audited Financial Statements
• Entry level credit rating should be SBS
• No deviation to be considered

Margin

• Minimum 20% for fund based facility. Though the limit will be treated as unsecured, contractors will have receivables which should be charged to the Bank and a margin of 20% maintained there against
• Minimum 15% cash margin for non-fund based facility

Appraisal of loan

• 30% of last two years average turnover
• Of this, 2/3rd will be used for Fund Based facility and 1/3rd for Non-fund based facility such as BG/LC.

*Terms & Conditions apply. For further details, Please contact your Nearest Branch

As applicable

Processing Fee, Documentation charges, Commitment charges etc

As per Extant guidelines of the Bank

*Terms & Conditions apply. For further details, Please contact your Nearest Branch

*Terms & Conditions apply. For further details, Please contact your Nearest Branch

*Terms & Conditions apply. For further details, Please contact your Nearest Branch