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rice shelling units

  • Finance
    Nature of facility

    Cash Credit , Term Loan, NFB(LC & BG), Packing Credit

    MPBF Calculation

    The present system of calculating MPBF on Turnover basis for limits upto ₹5.00 crores & Traditional Method in respect of limits above ₹ 5.00 crores may be continued. However, in view of the seasonal nature of activity, the Branches are permitted to apply traditional method taking into account holding period in respect of limits below ₹ 5.00 crores

    Rating The sanctioning authority shall comply with the guidelines relating to the compilation of internal credit rating in each and every borrowal accounts. However, its impact shall be applicable in those accounts, where collateral coverage is below 30%, in deciding rate of interest and in such cases rate of interest shall be applicable as per MSME guidelines as circulated by RMD. Further, external rating in all eligible cases be got done as per bank’s policy. In case of default penal interest shall be levied @ 1% over and above normal rate of interest for non compliance of guidelines of external rating as per Bank’s policy .
  • Security and Margin
    Primary Security

    Hypothecation of stock, work in progress. Finished goods, Bi products & Book debts and all other Current asset of the Company. Hypothecation of plant and machinery created out of Banks Finance.

    Security

    Mortgage of immoveable property. Wherever collateral security is not available, the eligible units should be invariably covered under CGTMSE.

    Margin

    Branches shall apply a uniform margin of 25% on stocks and book debts within their powers

  • Rate of Interest and Repayment
    ROI
    Collateral Coverage Rate of Interest
    100% or Above RBLR+0.85%
    Less than 100%-upto75% RBLR + 0.85%
    Less than 75% -upto 50% RBLR+1.35%
    Less than 50%-upto30% RBLR+1.60%

    Bellow 30%- The ROI applicable to MSE Borrowers.

    Repayment Period

    The season for the Rice-Shelling Units varies from place to place depending upon the arrival of paddy of different types/varieties.
    Keeping in view the above, we have to provide flexibility in the timing of granting credit facilities and its liquidation. Accordingly, the outstanding in working capital limits sanctioned to Rice-Shelling Units are to be liquidated to the extent of 50% at the end of the 9th month from the date the facility has been allowed in the new season. The policy in regard to the period of sanction shall remain unchanged, however, between the 9th month and the 11th month from the date the facility has been allowed, the drawings power (DP) shall be permitted only against prime security of finished goods, by-products and bardana (packing material).
    The quantity of bardana and by-products taken for calculation of drawing power should be of reasonable level. The facility shall be liquidated to the extent of 100% at the end of 11th month from the date the facility has been allowed.

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