Lab Grown Diamond Scheme

·         Proprietorship, Partnership, LLPs, Private Ltd Companies, Public limited Companies engaged in the above activity

·         All MSME units – existing (with good track record) as well as new (with satisfactory promoters’ track record, group affiliation and viable project).

·         It shall be ensured that the account is not a restructured / rescheduled one, none of the group accounts are NPA with other banks / FIs and due diligence has to be made.

·         Satisfactory Track record of the unit / borrower / group units / promoters.  In case of existing units, operations in the account should be satisfactory.

Ø  CMR of the customer should be 1- 4. Wherever CMR is not applicable/ available, CIBIL score of main promoter should be 730 and above or equivalent other CIC score.

Ø  Borrowers should not be categorized as SMA 1 in last -12- months.

Ø  The borrower should be externally rated with minimum external rating as ‘A’ for exposure of Rs.25.00 Cr and above.

Ø  Internal combined RAM rating should be A and above.

Ø  Minimum 100% of the collateral security by way of EM of immovable properties/liquid securities.

Maximum Exposure: Rs.50.00 Cr

Land and Building: 30%

Plant and Machinery: 25%

Second Hand Machinery: As per Bank norms

Working Capital facility:

Margin: 25% on Stock & 30% on Book Debts up to 90 days.

Valuation of Inventory/Stock:

v  Cut & Polished (C&P) Lab Grown Diamond (LGD) stocks are certified for cut, clarity, colour and carat by agencies such as Gemological Institute of America (GIA) or other such similar agencies. Hence, in the stock statements, cut and polished lab grown diamonds are to be shown as two categories as below:

ü  C&P Diamonds – Certified.

ü  C&P Diamonds – Non-certified.

v  For the purpose of calculating margin and drawing power, only Certified portion of Cut & Polished Diamonds shall be considered.

NFB: As per Bank guidelines

*At present-6.50%

Any concession beyond the approved rate including BSD can be considered by Competant authority at CO on case to case basis.

Any concession can be considered on case to case basis as per discretionary powers

ü  Collateral security:

v  Minimum 100% of loan amount to be secured by way of EM of immovable properties in the form of Residential/ Commercial / Industrial Land & Building (Realizable value)/ liquid security etc.

Ø  For domestic Sales, GST Returns to be obtained and verified as per extant guidelines. With regard to export-import transactions, extant bank guidelines shall be adhered by field functionaries.

Ø  At the time of assessing limits, dependency on single buyer as a percentage of annual sales is to be critically examined by the sanctioning authority while permitting the limits.

Ø  Bench Mark ratios as per MSME policy to be complied. Any deviation can be considered in line with delegated authority.

Ø  Takeover of existing liabilities from other Banks/FIs of entities which are in the same line of activity can be permitted subject to compliance of takeover norms of the bank, other guidelines under this scheme.

Ø  All other extant guidelines, circulars issued from time to time, procedures, manual of instructions etc., will apply to these sectors also.

Ø  All credit policy guidelines with respect to stressed sector financing must be followed for this product.

Ø  Any deviation in the product features will be considered by COLCC (GM) and above.