Scheme for financing MSMEs for setting up Biomass Pellets manufacturing units

Target Group & Eligibility

Ø  Minimum of CIBIL Score of 700 or Experian /Equifax/CRIF Highmark Score of 650).

Ø  Udyam Registration Certificate is Mandatory.

·         NFB facility ( BG) for submission to NTPC towards tender for supplying Biomass Pellets

Facility

Quantum of loan

Working Capital: As per Credit Policy guidelines.

Limits Upto Rs. 5.00 Crs – Turnover method

Limits above Rs. 5.00 Crs – MPBF II Method / Cash Budget.

NFB Facilities: Need based

Margin (Promoter’s Contribution)

Working Capital: 25% (Minimum)

LC: 10%

BG:10% for Performance & 25% for Financial Guarantee.

v  Hypothecation of Stocks / Book debts / Machineries

v  EM of factory Land & Building

v  Charge on assets created out of Bank finance.

Collateral:

v  CGTMSE coverage up to Rs. 200 lakhs. Option will be available with field level functionaries for taking collateral if justified/needed/preferred/advantageous for Bank.

v  Credit exposure of above Rs. 200 lakhs to be secured by immovable security minimum to an extent of 50 % of un covered credit exposure and the same to be considered by ZLCC and above on case to case basis.

v  The account will also have coverage under CGTMSE Hybrid security.

There should be exclusive charge over assets of entire including immovable assets and movable assets.

Guarantee: Personal Guarantee of all the Promoters and Property owners.

*REPO 6.50% at present

Finer Rate of Interest : Delegation – As per Discretionary Power Booklet

For exposure less than Rs.100.00 Lakhs: ROI to be charged as applicable for IB BBB (Combined Rating Grade).

Cash Credit: To be Renewed Annually.

During Moratorium period Interest to be serviced as and when debited.

As per power booklet, up to their Discretionary Powers.

Credit limits above Rs 10 Crores will be considered / approved by COLCC GM at Corporate Office

Upfront fees / Processing

charges

50% Concession in Processing fee & Commission for NFB from card rate

Prepayment Penalty

2.    In case of Cost overrun it should be met by Promoters from their own source.

3.    CGTMSE to be obtained wherever applicable.

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

5.    Bench Mark norms as per MSME policy to be complied. Deviation approval powers as per extant guidelines.

6.    All Statutory Approvals/Clearances required for setting up plant is to be obtained.

7.    Funds to be utilized for business purposes only and not for speculative purpose.

8.    Branch / ZO to take up with NTPC and ensure that the payment towards supply of Biomass Pellets are routed through our bank account.

9.    Working Capital to be released only after ensuring commencement of commercial production of the Project.

10.  All guidelines issued from time to time and Credit policy to be complied with.