Canara Msme BEML

Nature of Facility	Term Loan Only
Purpose	Purchase of Earth moving, construction and mining operation equipment from BEML
Target Group	Earth moving contractors, Railway, Road and Canal work contractors etc. and Business Units other than trusts, who want to avail loan facility for manufacturing and services activities.
Quantum of loan	Minimum – 20 Lakhs Maximum – 300 Crores.
Margin	Loan up to 100 Lakhs – 15% Loan above 100 Lakhs – 20% 85% or 80% on road price of the equipment/vehicle
Repayment Period	Maximum Repayment period of 5 to 7 years repayable in EMI.
Security	New customers: A) From ₹20.00 Lakhs and up to 200.00 Lakhs: Loans covered under CGTMSE: Proprietor, Partners and Directors shall be taken as guarantors without fail. Hypothecation of equipment’s/ machinery / vehicle purchased / assets created out of Bank finance. No collateral security and/ or third party guarantee shall be obtained. B) For loans not covered under CGTMSE: In addition to primary security, minimum 75% collateral security in the form of mortgage of immovable property/ Financial Securities (Such as TD with the Bank /NSC/ KVP/ SV of LIC policy/ RBI relief bonds/ Government/Trustee Securities/IVPs) shall be obtained. For Existing Customers: Suitable decision regarding collateral security based on satisfactory dealings/credit history of the customer will be taken.
Coverage	All eligible loans to be covered under CGTMSE/CGFMU.
Processing Charges	As per Extant Guidelines

Customer Identification proof along with NF998 MSME application.
Address Proof of unit and promoters.
License/permissions.
Financial papers for the last 3 years with ITR and projections.
Details of Guarantor with proof of assets.
Stock Statement.

Rate of Interest is linked to the value of security/approved collaterals, Internal and External Risk Rating/Grade.

Penal interest of 0.25%/0.50% may be chargeable as the case may be, from previous sanction to current renewal period, in case of lesser turnover routed through the account.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.