MSME Financing in Ahmedabad Circle

AREA SPECIFIC SCHEME FOR FINANCING MSMES ENGAGED IN BOTH CERAMIC AND VITRIFIED TILE INDUSTRIES IN AHMEDABAD CIRCLE

Nature of Facility	Working Capital Term Loan (Both Fund-Based and Non-Fund Based facilities)
Purpose	"To provide credit for business requirement of MSME borrowers engaged in Ceramic and Vitrified Tile business(Manufacturing) for Term loan / working capital requirements."
Target Group	Unit’s engaged in the activity related to Ceramic industry(Manufacturing). Availability of mortgage of Land and Building for Individuals/Partnership firm (other than partnership firms where HUF is a partner)/ company (excluding NBFC)/ proprietary firms. The Scheme shall be applicable for accounts of risk rated up to Moderate Risk.
Quantum of loan	Minimum: Above Rs.10 Lakhs Maximum: Rs.50 Crores Term Loan: Maximum up to Rs.30 Crores.
Margin	Term Loan: 25%. Working Capital: 25% against Stock and 30% against Book Debts. Non fund based limits ( LC/BG/ Trade Credit): 20 %
Security	Primary: Assets created out of loan proceeds. Collateral: Minimum security comfort by way of primary & collateral (Land & Building and Approved securities, viz. LIC Policies, NSCs, KVPs, PSU Bonds except share & debenture standing in the name of borrower only) should be more than 50% of loan/limit. However, in the case of recently purchased Land, which is within one year from date of purchase, minimum security comfort by way of prime & collateral (Land or Land & Building alone) shall be 40% or more of the loan/limit. It is subject to the condition that the market value of the Land or Land & Building alone shall be more than 50%.
CGTMSE Coverage	Not Applicable.
Processing Charges	50% of the applicable upfront fee/ processing charges.
Processing Charges	Working Capital: Tenable for one year Term Loan: 5 to 7 Years including moratorium.

Applicable PAN India with present applicability in Ahmedabad circle.

Individuals/ Proprietary Concern/Partnership Firms (other than Partnership Firms where HUF is a Partner) /Company (excluding NBFC).
The Scheme shall be applicable for accounts risk rated up to Grade V /Moderate Risk /BB.

31.03.2025 (subject to performance review of the scheme as on 30.09.2024)

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 and Internal 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.