Target Group:

• All new / existing Rice Mills, Dhal Mills, Oil Mills and Flour Mills.

Objective:

• Acquisition of new machinery / factory building / modernization and Working capital needs.

Eligibility:

• For New Units: Satisfactory promoters’ track record, group affiliation and viable project for new units.
• For Existing Units: Consistent Net profit making units for a minimum period of two years.

Type of Facility:

• Term Loan.
• Cash Credit.

Quantum of finance:

• Based on Project cost.

Margin Norms:

Term Loan: 25% for new machinery and 30% for landed property and building

Working capital:

• Stocks of goods
• For Limits less than Rs. 1 Crore – 20%
• For Limits Rs. 1 Crore & above – 25%
• Book Debts – 25% (upto 90 days duration) NFB Margin – as per norms.

Repayment Period:

• Term Loans – Upto 7 Years with maximum holiday period of 12 months.
• Working capital: One year with yearly renewal.

Processing Charges:

Term Loan:

• Upto Rs. 25000/- : NIL.
• Above Rs. 25000        : 0.50% of the limit sanctioned

Working Capital:

• Upto Rs. 25000 NIL
• Above Rs. 25000/- up to Rs. 50 Lakh: Rs. 250 per lakh or part thereof Min. of Rs. 250
• Above Rs. 50 Lakh: Rs. 350 per lakh or part thereof.

Rate of Interest:

• Please refer the Lending Rates link on home page in our Bank’s Website www.indianbank.in.

Credit Guarantee:

• Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DACFW.

Security Norms:

• Primary: Hypothecation of stocks / book debts / machineries / EM of factory land & building / charge on assets created out of Bank finance.
• Collateral: No collateral for limit up to Rs. 10 Lakhs.
• For Limit above Rs. 10.00 Lakhs: Additional Security cover by way of EM property / In the form of MMD/FD/LIC/NSC, etc., belonging to borrower / guarantor for limits sanctioned (both FB & NFB) should be 100% of loan amount