IND Professional Special

ü  Units/ Individuals must have valid license to conduct such business / profession.

ü  Minimum 3 years of experience in the respective field of profession.

ü  The existing Professional / Firm should be an assessed under Income Tax. Professional receipts to be verified from ITRs.

ü  Existing facilities availed if any should not have appeared in SMA-2 & above during last 12 months.

ü  Purchase / Acquisition / Construction / Renovation of property for Business purposes.

ü  Purchase of Office furniture & fixture, Equipment’s etc

Overdraft: Bonafide business purpose.

Maximum Loan for Term loan:

ü  Max up to Rs 3.00 Cr in case of Metro & Urban Centres*

ü  Max up to Rs 2.00 Cr in other Centres*.

*based on location of the unit.

For OD : Max up to Rs 1.00 Cr

Secured Overdraft: Based on Cash budget method and RSV of immovable Properties

Term Loan:   Total Cost of Project less (-) applicable Margin subject to maximum 5 times of Annual Cash Profit (last 2 Years average) and compliance to DSCR.

Bank’s appraisal format for MSME to be used for assessment.

·         Over draft against Book debts: Hypothecation of Book debts.

·         Secured Overdraft: Mortgage of Immovable properties.

·         In case of ODBD & SOD, Minimum security coverage by way of immovable property/ liquid security of 50% to be ensured.

·         Term Loan: Hypothecation/ Mortgage of assets created out of term loan.

Collateral Security:

Personal Guarantee:

• Personal Guarantee of property owner/s whose security has been considered.
• Corporate Guarantee of group concern/s which had offered the security.
• Personal Guarantee of Partners / Directors as per extant guidelines.

Maximum loan repayment for purchase of Furniture & Fixtures, equipment’s is upto 3 years (including moratorium period)

Maximum loan repayment for purchase/ acquisition/ construction/ renovation of property for business purposes shall be upto 7 years (including moratorium period).

Method of Repayment:

o   Principal in equal Monthly Instalments.

o   Equated Monthly Instalments (EMIs)

o   Negotiated repayment of principal – Ballooning repayment based on repaying capacity

Interest to be serviced during holiday period.

Working Capital : On Demand

Based on ICON rating / Scoring Model (Upto Rs.1 Cr) as applicable

b) Accounts with CGTMSE Coverage:

**Any deviation in benchmark ratios to be dealt as per delegated powers.

·         Sanction letter of existing banker to be obtained to verify the loan repayment is in order as per sanction terms.

·         Accounts should have Standard Asset Classification with the existing banks and recorded net profit after tax in the previous year and at least two years out of last 3 years, unless the account is in operation for less than three years.

·         All facilities of the borrower (instead of select facilities) should be taken over from the existing banks.

·         Repayment terms are same as per existing loan taken over from other banks / financial institutions. I.e. no extension from the original repayment

·         Security of assets charged for the facilities (Primary, Collateral, Personal / Corporate Guarantee) will continue as security to our Bank.

·         Liquidation of liabilities of loan from FIs / banks may be consider, provided those liabilities were / are in order.

·         For detailed guidelines , please refer Credit Policy:2023-24, Page no: 52 to 56

ü  Other Constitution based documents and applicable documents as per documentation manual.

ü  Promoters’ contribution should be brought up front/ proportionally.

ü  Pre-Release Audit/legal Audit are to be conducted as per extant guidelines of Credit Policy.

ü  A Declaration from the borrower that the loan amount has been utilized for the purpose/s for which it is sanctioned, to be obtained, to ensure end use of loan.

ü  While extending loans construction purposes, Land cost (acquired through own sources) can be considered as margin, provided it is upfront purchase. Loan for purchase of land not permitted under the scheme.

ü  Group exposure guidelines to be followed meticulously while according sanction of loans under the scheme.

ü  Balance sheet/ financial statements for last two years to be obtained to verify the annual receipts based on average of last 2 years.

ü  Agricultural properties should not shall not be accepted as Collateral Security under the scheme.

ü  Annual receipt for assessment of quantum of loan shall be based on the last two years Audited Balance sheet.

ü  Book Debts up to 90 days, (180 days on case to case basis) can be considered for calculation of drawing power under the scheme.

ü  In case of existing securities, where the residual value to be considered, the valuation report should not be fresh valuation and neither it should be more than 3 years old.

ü  Charges to be registered with ROC/SRO as per extant guidelines.