LAGHU UDHYAMI CREDIT CARD SCHEME (LUCC)

Transcription

1 LAGHU UDHYAMI CREDIT CARD SCHEME (LUCC) FACILITY Cash Credit/ Overdrafts PURPOSE To make credit delivery system simple by waiving cumbersome procedural aspects relating to renewals, submission of balance sheet and periodical stock statement and introducing simplified application form based on Scoring Model eligibility. ELIGIBILITY All existing small/ medium enterprises, retail traders, artisans, SSI (Now MSE) units, tiny units and Professionals and self employed persons etc. availing working capital requirements upto Rs lacs and with satisfactory dealing for last two years. However, units which do not enjoy credit limit with our Bank / other Banks for the present, with excellent performance may also be considered. PROCESSING CHARGES Processing charges will be recovered at the time of limit sanctioned and then recovered on annual basis at the time of renewal/review the limit. It will be recovered at the rates applicable on SIB segment from time to time. VALIDITY Credit card limit will be valid for a period of 3 years subject to satisfactory conduct of the A/c. Internal review based on last 12 months turnover in the account and conduct of account will be done annually. STOCK STATEMENT Waived. However, annual stock statement as on February end is to be submitted for arriving at Drawing power for statutory audit purpose (for all working capital accounts). FIXATION OF LIMIT (i) In case of Artisans, Retail Traders, Small Entrepreneurs and Businessmen: 20% of annual turnover declared for tax purposes OR last 12 months turnover in the operative account, whichever is higher. In case of parties with good track record where sales tax returns are not available - limit to be fixed based on actual turnover in the account during the last 2 years. (ii). For Professionals & Self Employed Persons, 50% of gross annual income as per Income Tax return will be considered as the limit for issuing LUCC. (iii). For SSI (Now MSE) units including Tiny sector units, assessment norms in vogue as per Nayak Committee recommendations would continue. Margin A 25% margin shall be stipulated for credit facility covered under LUCC scheme.

2 SCHEME FOR PROVIDING SPECIAL CONTINGENCY LOAN FACILITY TO RETAIL TRADERS AND SMALL BUSINESS "TATKAL VYAPAR SUVIDHA" FACILITY OVERDRAFT IN CURRENT ACCOUNT PURPOSE To meet additional funds requirements over and above the normal requirements for various purposes such as for maintaining higher stocks, for making advance payment to suppliers, payment of sales tax and other taxes etc. ELIGIBLE BORROWERS All traders and small businesses falling under SBF sub-segment enjoying credit facility with the Bank. QUANTUM OF FINANCE & PERIOD 20% of fund based working capital limits for a maximum period of 45 days in each instance, to be extended only twice a year to a borrower that too after a gap of two months. If the outstanding under the facility is not liquidated within 45 days, the facility will be treated as irregular. SANCTION At the time of renewal of working capital facilities. RATE OF INTEREST - As applicable to clean advances. AVAILMENT Through a separate account Tatkal Vyapar Suvidha A/c. No cheque Book to be issued. Drawings to be permitted against a single letter of request mentioning purpose and source from which drawings would be adjusted. Not to be availed by borrowers as a matter of right but to be released by Branch Manager at his discretion to meet certain exigencies.

3 GENERAL PURPOSE TERM LOANS TO SSI (Now MSE) SECTOR FACILITY TERM LOAN PURPOSE Any general commercial purpose such as shoring up of NWC, capital expenditure, substitution of high cost debt, research and development expenditure, quality up gradation to ISO standards, etc. ELIGIBILITY i. Existing SSI (Now MSE) borrowers with "Excellent' credit rating / CRA rating SBBJTL-3 and above ii. Should have earned pre-tax profits in each of the immediately preceding 3 years. iii. The unit should not have any history of default in payment of interest/installments. INDICATIVE FINANCIALS Minimum gross DSCR: 1.75, TOL/TNW: Max. 3:1 Total long term Liability to Equity: Max. 2:1 Current Ratio: Minimum 1. QUANTUM OF LOAN : Upto Rs.50 lacs. MARGIN Minimum margin of 25% for loans for acquisition of land and building, construction of building, up gradation and renovation of offices, showrooms, godowns, purchase of equipments, vehicles,etc. INSPECTION: Quarterly. SECURITY Primary - Extension of hypothecation charge over current & fixed assets. Collateral - (i) Extension of charge over existing collateral. (ii) Additional collateral security to be explored. (iii) Personal guarantee of Prop./Partners/Promoters. (iv) Modification charge with ROC if applicable. RATE OF INTEREST Rates for SSI (Now MSE) Advances applicable from time to time as per CRA rating. REPAYMENT The General Purpose Term Loan shall be repayable normally in three years, and upto 5 years in deserving cases in monthly, quarterly installments as per normal cash generation cycle. ******

4 SME SMART SCORE" SCHEME FACILITY Cash Credit for working capital Term Loan for fixed Assets Purpose To simplify the loan approval process. To cut down the delays in loan approval. To introduce consistency in approvals and eliminate subjective assessments. Eligibility Small and medium industrial and trading enterprises under SIB and C&I segment. The model is based on a set of characteristics, which are grouped as Personal, Business & Collateral with maximum score of 100. An eligible borrower should get minimum score of 60 out of 100 and 50 % in each group. For renewal, minimum score should be 60%. Personal details - Max. 30 points. Business details - Max. 50 points. Collateral - Max. 20 points. Scheme is available only if: - -- Chief promoter s age is below 60 years. -- He belongs to local area or his antecedents can be verified with satisfaction. -- He is not defaulter of the bank in loans/guarantee. -- All clearances including Environment clearance have been obtained. Nature and Quantum of Loan Minimum of 20% of projected sales for working capital and 67% of project cost for term loans within the overall limit of Rs.5 lacs to Rs.25 lacs. Higher quantum can be fixed based on subjective assessment. However, if the borrower is unwilling to take up minimum, the loan amount can be lowered but in such case, the branch should get fully satisfied about the ability of the borrower to bring the needed funds. Non-fund based facilities can also be sanctioned on best judgment basis within the discretionary powers delegated to the Sanctioning Authority. Credit Rating & Pricing CRA rating not required. Rate of interest will be as applicable for SSI (Now MSE) loans upto Rs lacs. Loan Repayment & Renewal

5 Repayment period of term loan not exceeding 5 years (excluding maximum Moratorium period of 6 months) and subject to renewal every year for working capital loans. Working Capital loans can also be renewed and term loans could be reviewed if the credit score is 60 and above. Override In case of ineligibility under the model, the loan can be sanctioned under existing assessment and appraisal method. Benefits of scoring pattern i. Transparent- Loan assessor know want the Bank looks for. ii. Marketing of loan become easier. Uncertainties regarding sanction of loan will be avoided. iii. Reduce Accountability Phobia. >>><><<<

6 "ARTISANS CREDIT CARD" SCHEME Facility Term Loan & Cash Credit Purpose To provide adequate and timely credit facility to small and tiny units of artisans for their Investment as well as working capital needs. Eligibility Artisans, not benefited under other Govt. loan schemes, involved in production /manufacturing process would be eligible for finance under the Scheme. - Thrust on clusters of Artisans and SHGs. - Preference to Artisans registered with Development Commissioner (Handicraft). - Existing Artisan borrowers enjoying credit facility upto Rs.2 lac and having satisfactory dealings with the Bank also eligible. Amount of Loan Maximum Rs.2.00 lac (TL +WC). Security Collateral Security will not be insisted upon. However, obtaining proper security documents will hypothecate assets financed. Rate of Interest As applicable to SIB segment advances from time to time. Validity - Three years, with annual review. Margin - Upto Rs.25000/- - Nil. Over Rs.25000/- - 20%. Inspection - Quarterly. Submission of Stock Statement - Waived. Fixation of Credit Limit - i. Term Loan Cost of tools and equipments. ii. Working Capital As per Nayak Committee recommendations (20% of anticipated turnover). Repayment:- Repayment schedule can be fixed for purchase of tools & equipments. Credit Guarantee Scheme of CGTSI

7 Under the scheme Guarantee fee & annual service charges payable to CGTSI for obtaining guarantee cover will be borne by the office of the Development Commissioner (Handicrafts). The Development Commissioner (Handicraft) has placed advance funds with the CGTMSE from which the amount of guarantee fee and annual service fee will be appropriated by CGTMSE for guarantees issued / validated. Other Benefits i. After sanctioning the loan, credit card, which would be valid for three years, will be issued to the borrower subject to an annual review. ii. Borrower would not be required to submit financial statements for the purpose of annual review and no fee would be charged for that purpose. iii. Borrowers registered with Development Commissioner (Handicrafts) would be eligible for coverage under Group Insurance Scheme. Further, one time guarantee fee and annual service fee is born by the Development Commissioner (Handicrafts) in case the account is covered under credit guarantee scheme of Credit Guarantee Fund Trust for Small Industries & the artisans are identified by the office of the D.C. (Handicrafts). iv. Cost of photo to be affixed on the credit card will be borne by the Bank.

8 SCHEME FOR SBBJ SHOPPE/SUPER SHOPPE FACILITY TERM LOAN PURPOSE For purchase of new / old shops / establishment / offices. Modernisation and renovation of shops/ establishments/offices./face lifting of shops Expansion / addition / alteration to shops. Building for Training Centre, service Centres Repairs Centre / Garage. Building for Consultant / Chartered Accountants. All furniture / fixtures / /electrical fittings and other accessories required for the showroom /offices / shops. Dealers showroom/dealer's showroom under tie up arrangement with the reputed industries (viz. Bajaj, Hindustan lever Mahindra etc. Construction of shop, Office and establishment for their own use. ELIGIBILITY Individuals / Firms / Partnership / Trust / Franchises. Take over from other banks is permitted subject to observance of take over norms laid down by the Bank. Super Shoppe scheme is available for financing shops at Urban/ Metropolitan cities. QUANTUM OF LOAN Rs.20 lac (Maximum) under Micro and Small Enterprises (SSI (Now MSE) & SBF) Rs. 200 lacs (Maximum) under C&I (ME) MARGIN - For SIB segment 25% (in respect of purchase of old property margin will be charged as 40%). For C&I segment 35% (in respect of purchase of old property margin will be charged as 50%) DSCR - Minimum SECURITY (i). Primary Security - Hypothecation / pledge / mortgage / assignment of property purchased out of Bank's finances including non-industrial assets. (ii). In case of leased property:- Mortgage / assignment of leased hold property will be obtained, NOC from the lessor be invariably obtained. But in any case repayment period has to be within the lease tenure. Loan period needs to be lower than the remaining lease period. RATE OF INTEREST As applicable from time to time under SIB & C&I segment.

9 REPAYMENT - 3 to 7 years excluding moratorium period of 6 months. OTHER TERMS & CONDITIONS i. Viability to be ascertained. ii. Opening Current / SB A/c. is compulsory. iii. Clearance from local Govt. authorities. iv. Legal opinion on property v. Certificate from CA wherever required regarding completion of project. vi Approved map/plan, estimates and necessary permission from the concerned authorities. UPFRONT FEES 1.25% of the loan amount. >>><><><><<<

10 STAND-BY LINE OF CREDIT (SLC) FOR WORKING CAPITAL REQUIREMENTS OF SMEs ELIGIBILITY Borrowers rated SBBJ-3 and above. QUANTUM OF FINANCE 15% of the working capital facilities (Fund Based + Non-Fund Based) Maximum Rs.5.00 crores. SANCTION OF THE LIMIT AND ASSESSMENT Sanction of SLC is made on request for all eligible borrowers along with sanction of regular fund based/ non-fund based working capital finance by an authority having financial powers to sanction the aggregate of the regular credit limits and the SLC. No separate assessment / special justification is required for SLC. RELEASE OF THE LIMIT The release of SLC is to be approved by the head of the branch. SLC may be made available on the specific request of the borrower as stock limit, bills / receivable limit, letters of credit, bank guarantees limit for domestic operations / exports, depending on the need, after being satisfied about the requirement. Fund based SLC should invariably be covered by eligible drawing power. In case of SSI (Now MSE) units, SLC is not to be released where the unit has utilized SME Smart Score facility or already availed special contingency loan facility. PERIOD For a maximum period of 2 months at any one instance. No restriction on No. of occasions SLC may be made available in a calendar year. OTHERS Upfront fee: 1%, No commitment charge.

11 CAR LOAN TO SME UNITS Purpose To provide term loan to the promoters/partner of the SME units * having borrowing arrangements with the bank or their family members either in their own name or in the unit s name for purchase of new / old cars, jeeps etc. on attractive terms and conditions which are as under :- Eligibility Based on assessed annual income of Rs.75,000/- and above. i. Loan Amount No Ceiling for new vehicles. ii. Rs lac for used vehicle. Margin For loan upto Rs. 6 lacs 15% For loans above Rs. 6 lacs 30% Collateral No Collateral security required. Appraisal Simple, based on 2.5 times of assessed net annual income. Income of spouse can be added provided the spouse guarantees the loan. Processing charges Waived. Other benefits i. Sanction by the concerned authority without clubbing with other facilities provided to the unit. ii. No charge for issuing Demand Draft/ Bankers Cheque for making payment to the Dealer. * For the purpose of this Scheme SME units mean all units covered under SSI & MEsegments and all non- corporate Trade and Service sector units irrespective of segment. >>><><<

12 SME SARAL LAN SCHEME Purpose Providing hassle free finance to SME borrowers for their multiple requirements including working capital / capital expansion and other business requirements. Type of Loan Overdraft : For Working Capital requirements. Term Loan : For other requirements. Eligibility a) Small & Medium Enterprises. b) Retail & Wholesale Traders. c) Professional and Self employed. d) Transport Operators. Quantum of Finance Minimum - Rs.1.00 lac Maximum - Rs lacs Computation of quantum of finance (a) For Small & Medium Enterprises, Retail & Wholesale Traders & Transport Operators :- 75% of realizable value of collateral security by way of Equitable Mortgage. (b) For Professional & Self Employed : 75% of realizable value of collateral security by way of Equitable Mortgage. OR 4 times of net annual income as per Income Tax return. Security Primary: i) Hypothecation of stocks and receivables. ii) Assets created out of Bank finance in case of Term Loan. Collateral: i) Equitable Mortgage of land & building. (*) ii) Personal guarantee of All the Directors of the Company / Partners of the Firm / Karta & Major Co-parcners of HUF, depending on the type of borrower. iii) Personal guarantee of owner of the immoveable property to be mortgaged in case the property is in the name of third party. Submission of Financial Statement/ Review Review of the account will be on an annual basis. For review, financial statements will be examined in particular reference to the level of activity, cash accruals and credit summations in the account so as to satisfy the sanctioning authority on the general financial position of the borrower including their repaying capacity. Submission of financial statement will be stipulated as under:- i) No audited balance sheet required for turnover upto Rs.40 lac in case of firms. ii) In case of company, audited balance sheet will be obtained irrespective of turnover.

13 DSCR Term Loan : Minimum 1.75 (Gross) OD limit : It should be ensured that cash accruals of the unit are sufficient to service periodical interest to be levied in the account. However, DSCR will be only indicative factor and not the guiding factor as to determine the eligibility of the borrower under the said scheme. Sanctioning authority can permit deviations on selective basis after satisfying themselves on account of repayment capacity. Repayment Maximum 84 months including gestation period.

14 SBBJ TRANSPORT OPERATORS SCHEME Purpose Purchase of commercial vehicles by road transport operators for movements of goods or passengers. Eligibility Applicant should be able to run the business and having experience in this line of activity. Having valid route permit, wherever necessary. For loans exceeding Rs lacs, borrower and/or guarantor should possess some immovable property in their names having adequate value. In the case of second hand vehicle, it should not be old for more than 3 years and balance of its useful life should be more than sufficient to cover the repayment period of loan. Margin For New vehicles : 15% on invoice value cost of body, insurance for current year and registration charges. For Second Hand vehicles 30% in the case of second hand vehicle. Repayment 3 to 7 years Interest Security Interest rates as applicable to the SBF loans. Concession in rate of interest will be based on marks scored by the borrower. The marks will be arrived at based on details of personal, business and collateral parameters of the borrower as prescribed under the SME Smart Score model (As per annexure). The concession will be as per following table :- Period Score (60-80) Score (81 & above) Upto 3 years 0.50% below normal applicable 1% below normal applicable rate rate Above 3 years 0.25% below normal applicable 0.75% below normal rate applicable rate Primary - Hypothecation of vehicle purchased from Bank finance. Collateral a) Exposure not exceeding Rs Lacs: Nil. The advance will be covered under credit guarantee scheme of CGTMSE. (b) Exposure exceeding Rs lacs: (i) The advance will be covered under credit guarantee scheme of CGTMSE. OR (ii) Equitable mortgage / Registered mortgage of immovable property to cover at least 50% of the loan amount. OR (iii) Tangible collateral in the form of Bank's own deposits, NSCs, KVPs at least 50% of the loan amount. OR (iv) Third party guarantees having adequate worth and equitable mortgage of immovable property of at least 50% of the loan amount in the name of guarantor. Incentive Borrowers, who repay all installments on due date and there is no premature closure, will be entitled for 0.5% of loan amount and will be credited to the borrower's A/c as refund of interest at the time of closure of the loan account.

15 SBBJ SME CONNECT SCHEME * PURPOSE: Term Loan for funding requirements of Plant and Machineries / Equipments / Tools / Gen Sets and construction of factory building, educational institutions, hospitals and hotels etc. and for funding working capital requirements against Current Assets. ELIGIBILITY: 1. All existing accounts satisfactorily conducted and eligible for taking further exposure will be eligible for new term loan. 2. The existing term loan borrowers, who have not availed working capital facility during last one year, will be eligible for working capital facility under the scheme. 3. Take over from other Banks and potential borrowers, who have not availed any credit facility from our bank during last one year, will be eligible for existing as well as new term loans and working capital exposure. Other banks customers will be taken over subject to take over norms. 4. Existing borrowers who have availed loan under the SME Connect Loan Scheme may also take new term loans in SME Connect loan scheme at concessional rate of interest for one year/ upfront fees. The enhancement in working capital will not be permitted under the SME Connect Loan scheme and entire working capital will attract normal applicable rate of interest. NATURE OF FACILITY: Working Capital (Cash credit)/ Term Loan CRA RATING: 1. In case of new units- SBBJ-9 or better, and 2. In case of take over - SBBJ-7 or better LOAN AMOUNT: Minimum Rs lacs subject to Maximum of Rs crore (excluding existing exposure other than the proposed loan under the scheme i.e. existing exposure and loan proposed under the SBBJ- SME Connect product may exceed Rs Crore). Total exposure under the scheme i.e. term loan and working capital should be clubbed for the purpose. MARGIN: Minimum margin 20 to 25 %. Sanctioning authority may prescribe higher margin in case of book debts and construction of factory. SECURITY: Primary

16 First charge over entire current and fixed assets of the borrower. Collateral Security: In case of loan exceeding Rs. 1 crore: Collateral security as applicable to SME loans looking to loan amount and the credit risk category (CRA rating) of the borrower. In case of loan up to Rs. 1 crore, coverage under Credit Guarantee Scheme of CGTMSE or adequate collateral security as applicable to SME loans looking to loan amount and the credit risk category (CRA rating) of the borrower. In case of loan eligible for SME Saral Loan Scheme the criteria of collateral security (Mortgage), will be as per SME Saral Loan Scheme i.e. minimum 133% of loan amount. RATE OF INTEREST % per annum for first one year and there after normal rates as applicable from time to time as per credit rating and credit limit of the borrower. Conditions apply.

17 SBBJ- SME MARBLE PLUS SCHEME Purpose Type of Facility Eligibility Loan Amount Maximum Repayment Period Security Rate of Interest To provide hassle free finance to the Marble, Felspar, Quartz and other Stone Units for financing their multiple requirements including normal working capital / capital expansion (capex) requirements / other requirements related to their business activity. Term Loan, Cash Credit, LC & BG SME units engaged in Marble and other stone activity such as manufacturing, processing, carving, polishing and also trading. Existing and new units, Take over. Maximum Fund Base Credit facilities ( CC & TL) upto Rs. 5 Crore. The trading units will be permitted upto the exposure of Rs Lacs. In addition to this, need based Non Fund credit facility may also be extended. Term Loan based on project cost. For Term Loans : 84 months (A) Primary Security: (i) For working capital: Hypothecation. / Pledge of stocks, book debts and other current Assets.(ii) For term loan: Charge by way of hypothecation. / Pledge / Mortgage of entire assets created out of bank finance. (B) Collateral (for working capital as well as term loan) (i) Equitable mortgage of property / charge on tangible security belonging to borrower / guarantor.(ii) Personal guarantee of partners / promoters/owner of the property. (i) For Micro and Small Enterprises 3.00% above Base Rate (ii) For Medium Enterprises 3.50% above Base Rate Margin (a) Term loan: 20% (b) Working Capital: Stocks-52%, Book debts-50%, LC/BG-25% The scheme is available at all the branches of the Bank.