| Eligibility | a. Unit shall be Micro Service Enterprises b. Existing units seeking finance for expansion is also eligible. c. Units having valid license to conduct hotel business by Municipal/ Local Administration. d. Units in Own premises/units in leased premises with registered / un-registered un-expired lease covering the repayment period. |
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| Purpose | Term Loan- a. To set up a unit/business of Hotels/Restaurants and Lodges /Fast Food centres/motels (Dhaba)/Bakeries/High Way Inns / Pizza Centres (Franchises)/ Mess/Canteen/Catering Service/Service Apartment – enterprises qualifying under Micro, Small and Medium Enterprises b. To Upgrade/Renovate/Expand existing units by purchase of Furniture and Fixtures/ Machineries/Equipment’s/Vehicles etc Overdraft: |
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| Loan Amount | Maximum of Rs 10.00 lakh | |
| Margin | 20% | |
| Interest Rate | At present upto Rs.5.00 lakh 11.50%, Above Rs.5.00 lakh 12% subject to change from time to time as applicable to MSME loans. | |
| Security (For loans not covered under CGTMSE) | a. Hypothecation of stock & Mortgage of assets as Primary Security AND b. For Loans above Rs.0.50 lakh &upto Rs.2.00 lakh: Collateral security by way of Mortgage / charge of Non Agricultural property / NSC/KVP, Deposits LIC policies / Vehicles: Valued not less than 25% of loan amount (in addition to the Hypothecation of stocks / Mortgage of Assets as mentioned in”a” above). c. For Loans above Rs.2.00 lakh &upto Rs.10.00 lakh: Collateral security by way of Mortgage / Charge of Non Agricultural property / NSC/KVP, Deposits LIC policies / Vehicles: Valued not less than 50% of loan amount (in addition to the Hypothecation of stocks / Mortgage of Assets as mentioned in “a” above). |
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| Co-obligant/Surety | third party Guarantee acceptable to the Bank(For loans not covered under CGTMSE | |
| Repayment | Term Loan: Maximum repayment period of 7 years including repayment holiday/ moratorium period. Moratorium period upto a maximum of 12 months can be given in eligible cases
Over Draft: To be renewed annually and interest to be serviced monthly |
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