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Sunday, October 12, 2008

SSI GENERAL PURPOSE TERM LOANS

State Bank of India grants term loans to small scale industries for meeting general commercial purposes like substitution of high cost debt,research and development, shoring up net worth and funding business expansion.
The tenor of the loan is normally is 3 years, and the pricing is fine-tuned to suit the risk profile of the borrower. The repayment is structured in monthly or quarterly installments, according to the cash generation cycle.

FAQs


What are the eligibility criteria for these term loans?

The SSI unit that takes the loan should not have any history of defaults in payment of interest or installments of the principal. The unit should have a strong performance record and a respectable credit rating as per the bank’s own credit assessment scales ( In case of loan above Rs. 25 lakhs ) .

What is the type of security/guarantee required for the loan?

Extension of hypothecation charge over the current assets and fixed assets is required as primary security. Further, the borrower whose aggregate loans with the Bank exceed Rs 5 lakh may explore the possibility of collateralizing tangible security such as immovable property and third party guarantee. In all cases, personal guarantees of proprietors/partners/promoters have to be furnished.

What are the margins applicable?

A minimum margin of 25 per cent is applicable for acquisition of land and building, building construction, renovation of offices, showrooms, godowns, purchase of equipment, vehicles etc. In other words, the quantum of the loan will be restricted to 75 per cent of the total expenditure.

2 comments:

Anonymous said...

why the bihar foll down due to SBI /Lone process not good 95% customer running in bank since 2 years a real customer /fake customer's work is don in 2 month ,also purnea districts no1 in like this type work/

@mar said...

The post is informative, and legibly written.keep up the good work.
The comment prior to this one is not at all comprehensible.perhaps it would help in writing vernacular Hindi instead!