Parameters Features
Nature of Facility Drop-line Overdraft facility
Purpose General purpose loan for business such as for build-up of current assets and fixed assets needed for business purpose
Target Group All Business units engaged in manufacturing, services activities along with self-employed and professional individuals, wholesale/retail trade.
Eligibility Criteria
  1. Existing business for at least 5 years in the same locality/area.
  2. Should be owner of the premises OR should have valid tenant agreement with the owner of the shop (In case of rented premises, residual period of minimum 3 year)
  3. Current account holder at any bank for at least 2 years (proprietorship, partnership & corporate concerns).
  4. Min Avg. Monthly balance of more than Rs 1 lac in last 12 months, with monthly threshold balance of Rs 10,00
  5. The borrower should also fulfil the eligibility criteria as per Go/No Go Criteria. If any of the parameters get response as ‘No’, the unit will not be considered eligible under this scheme and no deviation to be permitted.
Quantum of loan (Min/Max) 10 times of average monthly balance in current account in previous 12 months subject to:
  • Min: Above Rs. 10 lacs
  • Max: Less than Rs. 25 lacs.
Margin (%) 10% which will be ensured through stocks and receivable statement
Pricing Competitive Pricing Linked to MCLR
Collateral Security Minimum collateral of 40%
Repayment Period upto 60 Months
Unified Charges Rs. 7500/- (comprising of processing fee, EM charges, documentation charges, Inspection, commitment charges and remittance charges)
Assessment The need based assessment for the requirement of credit limits has to be done.
  • Financial statement not required.
  • 10 times of average monthly balance in current account in last 12 months subject to minimum above Rs. 10 lacs and maximum less than Rs. 25 lacs.