Limits up to ₹5.00 Crores shall be computed on the basis of 20% of their realistic projected turnover subject to the condition that a minimum margin of 5% of turnover shall be brought in by the promoters/borrowers as their own contribution. However, wherever the nature of business activity so warrants, the branches may apply traditional method of lending (based on holding levels of Inventory, receivables and Creditors) and sanction need-based limits.
# The MPBF system (traditional method) shall continue to be followed for all borrowers with working capital limit above ₹5.00 Crores.
Term Loan: 80% of Project Cost
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