Overview
Industrialists and small entrepreneurs need finance to set up plant and machinery, equipment, and other movables such as furniture, fixtures and office equipment. The bank supports these ventures through this scheme.
Eligibility
Individuals, professionals, self-employed persons, businessmen and industrialists — including proprietary concerns, partnership firms, and joint stock companies.
Income
Sufficient to comfortably repay the loan within the agreed period.
Loan Amount
Covers the invoice cost for new plant/machinery/movables, or the agreement/market value (whichever is lower) for second-hand ones, after the applicable margin.
Margin
30% (on the agreement value plus stamp duty, registration fees, and any registered amenities in a flat).
Security
Hypothecation of the plant, machinery, or movables being purchased.
Guarantee
One or two solvent third-party guarantors.
Period of Loan
Up to 60 months for new plant/machinery, or 3 years for second-hand — repaid in EMIs.