TERMS

PARTICULARS

Segment

SSI

Eligibility

All  units  whether registered  OR not as SSI but having adequate experience in diamond   industry. Units should  be registered  under “Shops & Establishment Act.”

Credit facility

Clean Contingent Overdraft

Minimum: Rs. 2 lakh; Maximum: Rs. 15 lakh

Medium Term Loan / DL

Need based.

Purpose of loan

Clean Contingent

Overdraft Facility

To meet its contingent requirements such as payment of wages, salary, electricity bills, consumables and any other miscellaneous expenditure.

Medium Term Loan

To purchase equipment such as Ghantis / Laser cutting machine, Planner machine, Computer System and all other machine related to diamond cutting & polishing unit as part of business development.

Pricing

At BPLR. Presently 13.25% p.a.- Irrespective of the limits

Security (By way creation of equitable mortgage (EM) of residential / commercial property offered as collateral.)

Only Clean Contingent Overdraft    – 150% of the limit.

Only Medium Term Loan                – 100% of the limit.

Both Clean Overdraft and MTL      – 100% of the aggregate limits.

Margin

Clean Contingent Overdraft

50% of the average monthly overheads / expenses.

Medium Term Loan / DL

25% of the cost of the machinery.

Repayment

Clean Contingent Overdraft

To be reviewed / renewed at annual interval.

Medium Term Loan / DL

MTL : 3 to 5 years.  DL  :  Maximum up to 3 years. Repayment to start from the next month from the month of disbursement.

Insurance 

Clean Overdraft:

Property to be equitably mortgaged with the Bank will have to be fully insured against all the usual risks including earthquake in usual manner with Bank’s clause.

DL / MTL:

Insurance to be waived for the items which are not hazardous in nature. In other cases, the equipment / machinery financed should be adequately insured covering all usual risks.