| 1. Target Group |
All MSMEs involved in Manufacturing / Service / Trading activities as per extant definition of Government of India. |
| 2. Purpose |
To meet Working Capital requirements, Purchase of Assets meant for business, Repayment of debt taken from Non-Institutional lenders for business purpose |
| 3. Nature of facility |
Term loan only |
| 4. Eligibility |
Existing and New Customers. |
| 5. Quantum of Limit |
· Minimum Loan Amount: No Limit
· Maximum Loan Amount: Rs. 25 Lakhs |
| 6. Assessment |
- Limits should be assessed based on Business requirement of the applicant, subject to loan to value of jewels (as per the existing guidelines for loan against Gold Ornaments and Jewellery)
- The eligible amount must be determined based on purpose and the assessment model specified in the revised application, ensuring the requisite margin in business/activity.
|
| 7. Margin |
| Loan Type |
Loan Term |
Margin |
LTV |
| For loans to be repaid in Bullet repayment mode |
Up to 6 months |
30% |
70% |
| Above 6 months to 12 months |
32% |
68% |
| For loans to be repaid in EMI mode |
Above 12 months to 35 months |
30% |
70% |
- Declaration regarding maintenance of the requisite margin must be obtained from the borrower.
|
| 8. Disbursement |
The loan proceeds to be credited to the SB/CA/CC/OD account of the borrower maintained with our Bank |
| 9. Maximum no. & amount of Jewel Loans per customer |
Maximum of five jewel loans can only be availed by a customer at any point of time including Agri, Retail and MSME.
The ceiling for maximum amount under jewel loan which can be sanctioned to any customer including Agri, Retail and MSME at any point of time is as under:
(₹ in Cr.)
| Vertical |
Bullet Repayment product |
EMI product |
Overall limit |
| Vertical wise |
Per Customer |
Vertical wise |
Per Customer |
| Agri |
0.25 |
0.50 |
0.25 |
0.50 |
0.50 |
| Retail |
0.25 |
0.25 |
| MSME |
0.25 |
0.25 |
|
| 10. Repayment Period
|
| Bullet payment mode (Upto 6 months)
(Repayable at the end of the term along with interest accrued) |
Minimum Tenor: 1 month
Maximum Tenor: 6 months
|
| Bullet payment mode (above 6 months to 12 months)
(Repayable at the end of the term along with interest accrued) |
Minimum Tenor: 7 months
Maximum Tenor: 12 months
|
| EMI Mode
(Repayable in EMIs commencing from the subsequent month of disbursement of loan) |
Minimum Tenor: 12 months
Maximum Tenor: 35 months
|
|
| 11. Security |
Primary Security: Pledge of Jewels. |
| 12. Rate of Interest |
| Limit |
ROI |
| For loans upto Rs.20.00 lakhs |
Repo (6.50%)+ Prime Spread (2.70%) – BSD (0.40%) i.e. 8.80% at present |
| For loans above Rs.20.00 lakhs and upto Rs.35.00 lakhs |
Repo (6.50%)+ Prime Spread (2.70%) – BSD (0.20%) i.e. 9.00% at present |
| For loans above Rs. Rs.35.00 lakhs |
Repo (6.50%)+ Prime Spread (2.70%) i.e. 9.20% at present |
|
| 13. Processing charges & other Charges |
Upto Rs.100000/- : NIL
Above Rs. 100000/- : Rs 100 per lakh or part thereof (0.10% of the limit). |
| 14. Take Over |
Not Permitted |
| 15. Appraiser Fee |
- Branches in Metro cities: @ Rs.6 per thousand subject to a minimum of Rs.50/- and maximum of Rs.500/- per loan plus applicable GST.
- Branches located in all other centers: @ Rs.4 per thousand subject to a minimum of Rs.25/- and maximum of Rs.300/- per loan plus applicable GST.
- No charges to be levied for priority sector advances upto Rs.25000/- including jewel appraisal fee. All priority sector advances sanctioned to the applicant along with proposed new loan to be considered to arrive the ceiling of Rs.25000/-.
|
| 16. Documents to be obtained |
- GST registration copy / Udyam Registration Certificate / Shop establishment license / any documentary proof of Business to be obtained.
- In case of informal Micro Enterprises, branch must obtain a consent form and required data from borrower, to generate the Udyam Assist Certificate (UAC) to be captured in CBS.
- For MSME Jewel loans income proof of the applicant to be obtained for assessing the repayment capacity of the borrower as below
- MSME Jewel Loans up to ₹1.75 lakh: Can be sanctioned based on the borrower’s declaration of annual income up to ₹3.00 lakh. If the declared income exceeds ₹3.00 lakh, income proof (ITR, other documents if any) must be obtained.
- MSME Jewel Loans above Rs 1.75 lakh: Obtention of income proof (ITR, other documents if any) is mandatory.
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