Canara MSME Bills Discounting

To pay off the bills raised by the PWD Contractors/ Contractors/ Suppliers / Accredited Agencies of all other Departments/ Institutions / Local state Government Department on Government of Kerala (GOK).

Nature of Facility	Working Capital – Bill Discounting For the Branches coming under Trivandrum Circle.
Purpose	To pay off the bills raised by the PWD Contractors/ Contractors/ Suppliers / Accredited Agencies of all other Departments/ Institutions / Local state Government Department on Government of Kerala (GOK).
Target Group	Commission agents holding Mandi Board License for minimum one year The scheme shall be applicable for accounts Risk rated up to Moderate Risk.
Quantum of loan	No Higher/Lower Ceiling
Margin	NIL
Security	Primary: Hypothecation of Book debts. Collateral: I) Existing clients with credit limits: Securities available to the existing exposure to be extended to the subject limits also. However, the same may not be factored into while arriving at security comfort in respect of existing limits in view of availability of promissory notes of GOK, guaranteeing such limits. II) For the new clients: Collateral securities may be explored depending on the type of customers and need for the proposal.
Tenability	Maximum of 5 Months from the date of discount.

Trivandrum Circle

Circle Head is permitted to designate the branches in their Circle wherein the scheme to be implemented.
Circle shall intimate the list of designated branches to HO along with quarterly performance report.
Circle has to ensure that the facility is being extended only through the designated branches.
If the branches wherein, presently the facility has been extended, are not proposed to be designated by the circle as per (a) above, then the present outstanding liability under the scheme in those branches is to be cleared as per the guidelines and non-designated branches should not extend the subject facility to any contractors.

Scheme available to the existing as well as new creditworthy clients under MSME category with KYC compliance and due diligence, who are in the approved list of contractors of Government of Kerala (GOK) with satisfactory dealings, subject to ensuring that they are not enjoying any working capital limit with other Banks/FIs.

Till 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.
As per extant guidelines as applicable to such Scheme. Supportive documents: As per Scheme devised by GOK, Form I, II, III, IV, V and Promissory Note.

Minimum ROI: RLLR p.a, Maximum ROI: RLLR+1.55 p.a subject to risk rating and collateral value.

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.
Discounting of bills should be strictly for works carried out/completed works in accordance with the work order of GOK and not towards advance payments.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.