|
 |
Business Loans & Advances SME |
SME Medium Term Loans
PURPOSE:
To augment enterprise’s working capital gap and to help in improvement of current ratio and also for meeting genuine business requirements. The facility will also be available for repayment of secured and unsecured Loans of other banks or institutions, but not for any purpose, which is not related to the enterprises activity.
Enterprises Group:
Small and Medium-sized corporates, business and trading houses (including partnership firms).
Eligibility Criteria
- Satisfactory credit rating for the last three years.
- Latest Balance Sheet etc. should be available.
- Satisfactory financial performance in terms of Sales/turnover and profits. Negative variance, if any, should not be more than 10%.
- Debt-equity ratio should not be higher than 2.5:1 and average DSCR should be not less than 1.5:1.
- Satisfactory dealings with the Bank for at least Three years.
Loan Amount:
Upto 25% of the existing fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 25 Lakhs and maximum of Rs. 500 Lakhs.
Period:
Not exceeding –36- months, to be repaid in equal quarterly or half-yearly installments.
Security
First charge / Equitable mortgage of fixed assets of the Company / firm or extension of existing first charge/ equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.50.
Rate Of Interest:
- 0.5% - 1.0% over the Bank’s BPLR, only for the additional Loan to be granted under the Scheme.
- Prepayment penalty of 1%, if loan is prepaid within -24- months of drawdown.
Processing Charges:
- 0.1% of the amount of loan, with a minimum of Rs. 25,000/- and maximum of Rs. 50,000/-.
Small Scale Industries and Ancillary Units (SSI Units)
A Small Scale Industrial Unit, is one which is engaged in the manufacture, processing or preservation of goods or is a servicing and repair workshop undertaking repairs of machinery used for production, mining or quarrying or custom service unit (except water service units), having investments in plant and machinery (original cost) not exceeding Rs. 1 Crore.
Bank of Baroda has special Loans and Advances for the purpose of fixed capital investment and also for working capital requirement.
Key Benefits
The loans and advances offered by Bank of Baroda for SSI Units can be used for the basic needs of:
- Acquisition of factory, land and construction of building spaces.
- Purchase of plant and machinery including lab equipment, testing equipment, etc.
- Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills.
- Temporary additional assistance for meeting the urgent needs of raw material.
- Additional monitory assistance for any eligible purpose.
|
|
|
