oriental sme development

  • Eligibility

    Proprietorship, Partnership firms, Private / Public Ltd. Cos., falling within the definition of SME as per MSMED Act.

    • Business unit should have been established in their line of business minimum for 3 years and profit making concern.
    • Entry level rating should be minimum IMACS 5 .
    • CIBIL report to be obtained /generated and branch to ensure that the same is satisfactory as per bank guidelines.
  • Finance
    Nature of facility Term Loan to be repaid in 60 months exclusive of moratorium. Interest to be repaid as and when due.
    Purpose To provide hassle free credit to SME’s for purchase of machinery/equipments, to meet the cost of preliminary expenses related to business activity of the borrower, to meet cost of setting up R& D facility, marketing and advertisement expenses.
    Moratorium Maximum 12 months as per the requirement of the borrower.
    Size of Loan Minimum Rs 10.00 Lacs , Maximum Rs 250.00 lacs
    Permissible Bank Finance In shape of Term Loan: 50% of unencumbered value of property under offer or 75% of actual requirement whichever is less.
  • Security/Margin
    • Primary – Assets created out of the loan. (In case the facility is clean, then loan may be sanctioned under the powers of Regional Head). However, if the facility is clean, the maximum loan shall ne capped at ₹ 100.00 lac.
    • Collateral-Mortgage (Registered or Equitable) of factory land and building and / or any other property (Land & Building but not agriculture land/plot of land/ partially constructed property) belonging to promoters or in the name of Guarantors, viz. Proprietor/ Partners/Directors/or in the name of the firm/company or Guarantor.
    • Personal guarantee of directors and owners of property offered as collateral security.

    Note: Before sanction of any loan verification of property about its clear, marketable, enforceable title must be undertaken by the Branch Head/ Credit In-charge and kept on record. Extant guidelines about valuations of Property, title clearance and Inspection by branch to be strictly adhered to.

    Upfront fee 0.50 % of the loan amount in case of term loan.
  • Rate of Interest and Repayment
    ROI MCLR+2.00% for limits up to Rs 25.00 lacs and as per rating for SME accounts above Rs 25.00 lacs.
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