M.S.M.E. OverDraft

Purpose of Loan       To meet Working capital Requirement of Micro, Small and Medium Enterprise or Service Unit.
Eligibility of borrower ·         Industrial or Service units engaged in the manufacturing or Service activities for the last 2 years.·         New unit to be set up by our existing borrowers.

·         Existing borrowers having Cash Credit limits can convert their Cash Credit to MSME OD limit.

·         Borrower wants to avail MSME OD cannot avail Cash Credit limit for the same unit from any Bank.
Quantum of finance ·         Industrial Unit: 20% of projected annual Sales / Turnover OR 75% of realizable value of mortgaged property OR maximum Rs. 75.00 Lacs, whichever is less.·         Service Sector Unit: 20% of projected annual gross receipt OR 75% of realizable value of mortgaged property OR maximum Rs. 25.00 Lacs, whichever is less.
Share Linkage Purchase of Bank’s share is optional to the borrower.
Repayment period 12 Months ( Subject to annual review)
Rate of Interest 11.50%  p.a. (Up to Rs. 25.00 Lacs )11.70%  p.a. (Above Rs. 25.00 Lacs to Rs. 50.00 Lacs)

11.80%  p.a. (Above Rs. 50.00 Lacs to Rs. 100.00 Lacs)
Security ·         Equitable mortgage of immovable Property.·         Hypothecation of Stock / Book debts as collateral security.

·         Personal guarantee of two financially sound guarantors having property value of 1.5 times more than the Loan amount.
Documentation 1.       D.P. Note2.       Letter of Continuing Security

3.       Acceptance Letter of Loan Amount

4.       Letter of Consent

5.       Letter of Guarantee

6.       Letter of Lien and set off

7.       Hypothecation Agreement (Stock/Book Debt)

8.       Equitable Mortgage of immovable Property

9.       Letter of Undertaking ( as per Prescribe format )

10.    Letter of sanction duly acknowledged by the borrower and guarantors.