Eligibility

• Individuals, Proprietary / Partnerships / Private Limited Companies / Limited Companies. The applicant contractor needs to be registered with Central Government/ state Government authorities.

Purpose

• To provide financial support to

(1) Contractors of good reputation engaged in contract works on behalf of Central Government Department / State Government Departments/PWD/PUBLIC Sector Undertakings and reputed and highly rated Private Sector organizations.

(2) Reputed Sub-Contractors executing the works on behalf of main contractors

Loan Amount

• Above Rs. 10.00 Lacs and subject to a maximum Rs. 500.00 Lacs (FB + NFB)

Margin

• For Fund Based Limits: As per MSE Loan Policy
• For Non-Fund based Limits For SME-1 to SME -3 rated borrowers:

LG - Financial - Minimum 15 %

Performance - Minimum 10 %

• For others: As per MSE Loan Policy

Rate of Interest

• As per bank rate applicable to MSME loans based on RLLR

Collateral Security

• Collateral security by way of immovable property/liquid securities having FSV/Market value not less than 120% of limit sanctioned (FB + NFB)

Repayment Period

• Cash Credit: Annual Review/Renewal
• Term Loan: Maximum 5 Years

Holiday Period

• Three to six months depending on the need

Processing Fee

• For SME-1 to SME -3 rated borrowers:
• Upfront fee for Term Loan - 50% of applicable rate Processing Fee for Term Loan and Cash Credit -- 75% of applicable rate For others -- As per prevailing guidelines