Eligibility Established Traders as well as new ventures started by established business concerns.  Should have earned pre-tax profits in the previous year. Purpose Any general Trade purposes, viz. holding stock/book debts, acquisition of land and building, construction of building, upgradation/renovation of owned/leased showrooms/offices/godowns etc., purchase of equipment, furniture, vehicle etc., repayment of long term deposits/advances for payment to suppliers, shoring up of Net Working Capital or any other genuine trade purposes.

Nature of facility

Term Loan

Quantum of finance

Small Business Firm /Small Scale industries  – Rs.3 lacs to Rs.25 lacs

Rate of Interest

Competitive rates based on credit rating of proposal

Margin

25%

Security

Primary:

Hypothecation of assets

Collateral:

Immovable property/other tangible assets for a minimum of 100% of the loan amount.  Personal guarantee of partners/promoters.

Processing charges

As per bank’s norms.

Period of repayment

Monthly / quarterly instalments, 3 to 5years – pre-payment can be considered.