V Flour Mill

Constitution of the Borrower    

Individuals, Proprietorship, Partnership and Limited Company (Private/Public Limited.)
Purpose
  • Financing Roller Flour Mills subject to compliance with license / registration requirements under laws of State / Central Govt. as the case may be.
  •  Expansion/ renovation/ modernization of existing Roller Flour Mills.
Eligibility            
  • Term Loan based on requirement for Capex.
  • Working Capital based on Turnover Method including Bank Guarantee.
 Amount of loan              
Composite Credit Facilities up to a maximum of Rs.3.00 Crores (Term Loan + Working Capital).
Nature of facility
  • Term Loan.
  • Working Capital Limit (or combination of both depending upon the project.) including Bank Guarantee.
Margin
  • 25% on capital assets to be purchased (landed cost of Plant & Machinery/equipments), Vehicles, etc.
  • 35% for acquisition of premises and/or expansion/ renovation and modernization of existing Roller Flour Mill premises.
  • 25% on paid stock of wheat, Stock in Process and Finished Product i.e. Atta, Maida, Sooji, etc.
  • 25% cash margin for Bank Guarantee.
Security              
  • Primary-All assets created out of bank finance.
  • Hypothecation of equipments or the items purchased out of bank finance.
  • In case of acquiring premises / Expansion / Renovation/ Modernization of existing line up, Equitable Mortgage of the Property.
  • No guarantee/collateral for loans up to Rs.100 lakhs when the same is covered under CGTMSE Scheme, else collateral security equivalent to 100% of the loan amount other than Mortgage Loan.(Sanctions for acquisition of premises and/ or expansion/renovation/modernization of existing unit with 35% margin) to be taken, i.e. no collateral for acquiring land & building.
Guarantee
  • Personal guarantee of the Promoter Directors in case of companies.
  • Individual partners in case of Partnership Firm.
  • Non-Promoter-Owners of the immoveable properties which has been offered as security for the facilities.
Assessment of Loan
  • Term Loan – 75% of the cost of assets purchased or 65% of cost of acquiring premises or project cost for renovation/expansion/modernisation, etc.
  • Working Capital-Based on turnover method.
Guarantee Coverage under CGTMSE     
  • Limits to be covered under CGTSME Scheme up to Rs.100 lakhs.
  • The guarantee coverage under CGTMSE will be available as per the terms, eligibility criteria and premium defined under the scheme, as communicated from time to time.(HOC 12051 dated 16.03.2012)
Insurance
Insurance of the asset purchased out of bank's finance and that of collateral security with bank clause is mandatory.
Rate of Interest
  • BR+2.05%=11.70% (Floating) up to Rs.100 lakhs.
  • BR+3.05%=12.70% (Floating) above Rs.100 lakhs.
Processing & Commitment Charges
  • Processing Charges to be collected as per norms.
  • One time commitment charges of 0.10% p.a +ST, if not availed after execution of documents.
Repayment
  • Total repayment period including moratorium period shall not exceed door to door seven years in case of term loan.
  • Term loan to be repaid in equated monthly installments.
  • Maximum moratorium period of 12 months. Interest to be serviced during the period of moratorium.
  • Working Capital limit subject to renewal/review every year.
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