Loan to Small and Medium Enterprises

Purpose

  • To finance working capital and/or capital expenditure requirement for businesses involved in trading, manufacturing/production/processing, service.

Eligibility

  • “Small and Medium Enterprises” means any industries/business/trading units having paid-up capital up to Rs. 100.00 lacs including Micro and Cottage Industries.

    For existing (operating units):

    • Registered in concerning government authorities/municipality / rural municipality
    • Minimum 2 years of profitable operation, cash profit can also be considered

    For Start-Up business:

    • Start-up businesses with the existence of less than 1 year
    • Registered in concerning government authorities/municipality / rural municipality 
    • Minimum 2 years of experience in the similar business of proprietor/ partners/ directors or key persons

Facility

  • Working Capital Loan by way of OD/STDL/DL/TR/LC/BG
  • Term Loan for capital expenditure

Limit

 

For Existing Business

For Startup Business

Working Capital (including FB & NFB) & Term Loan

Below Nrs. 500.00 lacs

Upto Nrs. 250.00 lacs

Interest Rates

Competitive rate and charges

Security

Primary security:

  • For Working Capital:

                          Hypothecation of stocks, debtors, assignment of current assets, bills and receivables                              of the business.

  • For Term Loan: 

                         Hypothecation of Fixed Assets financed

  • For NFB facilities:

                         Reasonable Cash margin to be sought

Collateral Security:

For existing unit: Immovable Property (land and building) covering 125% of loan amount under branch power

 

For start up business: Immovable Property (land and building) covering 150% of loan amount under branch power

Repayment Options

  • Working Capital – 1 year revolving, renew subject to satisfactory conduct
  • TL – Upto 10 years

Insurance

  • Comprehensive policy as per banks’ clause.