PURPOSE – Providing loans for Micro Small and Medium Enterprises.
QUANTUM OF LOAN – Enterprises engaged in the manufacture or production, processing or preservation of goods as specified by the bank.
A micro enterprise is an enterprise where investment in plant and machinery original cost excluding land and building does not exceed Rs.25.00 lakh; a small enterprise is an enterprise where the investment in plant and machinery original cost excluding land and building is more than Rs.25.00 lakh but does not exceed Rs.5.00 crore; and a medium enterprise is an enterprise where the investment in plant and machinery original cost excluding land and building is more than Rs.5.00 crore but does not exceed Rs.10.00 crore; enterprises engaged in providing or rendering of services and whose investment in equipment etc.
RATE OF INTEREST – 11.50% p.a. for loan up to Up to Rs.2 lakh and 12.00% p.a. for loans above Rs. 2 lakh, Above Rs. 2 lakh
SECURITY – Collateral security minimum of 150% of the value of advance shall be obtained besides Hypothecation of Machinery and other current assets.
REPAYMENT – 3 to 5 years
The bank is also having a Tie-up arrangement with 166 Companies or Corporate providing personal loan, House Building Loans, Vehicle Loans & Educational Loans.