Scheme for Trades -Liberalised Trade Finance
Fair Practices Code for lenders
Terms and Conditions letter for industrial advances
Scheme for Traders-Liberalised Trade Finance
State Bank of Mysore has designed schemes for traders to meet their working capital needs – under C&I and SME Segment
The following categories of borrowers will be covered:
a. Small business enterprises.
b. Retail traders/ wholesale traders.
c. Professional and Self employed.
Salient features of the scheme:
A maximum amount of Rs.500.00 lacs is extended by way of cash credit/ term loan facility, with margin 35%.
Rate of interest
Cash credit – 13.00% i.e. 4.75% above base rate
Term loan – 13.50% i.e. 5.25% above base rate
Limit is available for a period of 12 months renewable annually for cash credit and for term loan 60 months.
The hypothecated stocks and other securities offered are to be insured comprehensively.
Stock statements/ book debt statements to be furnished quarterly in case of loan for inventories or current assets.
Immovable property of 153% of the loan amount to be mortgaged to the bank.
No third party guarantee.
Salient features of the scheme:(revised scheme wef 10.04.07)
A maximum amount of Rs.50 Lacs is extended by way of Cash Credit facility, with margin ranging between 25 % and 35%.
65% of realisable value of property mortgaged. Valuation report not more than three months old. Types of properties that can be mortgaged are restricted.
For limits Rs.25 Lacs & above audited financial statements are to be submitted.
Annual interest liability should not exceed 50% of gross profit.
Rate of interest Click here for latest rates
The hypothecated stocks and other securities offered are to be insured comprehensively
Stock statements / book-debts statements to be furnished annually as on 31st March every year
Personal guarantee of the promoters / partners / directors of the company
Immovable property to be mortgaged to the bank. Third party guarantee is also accepted.
Handy Loans Scheme - For Trade and Services sector
Coverage: Metropolitan, Urban & Semi-Urban Branches
Salient features of the scheme:
Type of loan
Term Loan
Amount
Minimum of Rs.2 Lacs and maximum of Rs.25 Lacs
Handy Loan can be availed for :
- Holding stocks / Receivables
- Acquisition of land and buildings for establishing trading house
- Building construction & renovation of offices, showrooms, godowns, etc
- Purchase of equipment, furniture & vehicles
- Augmenting networking capital
- Payment of long term deposits / advances to supplier
- General trade purposes
Eligibility
- Applicants should be engaged in trade, services activities, and have rating of SBM 1 to 4 under Credit Risk Assessment System
- Earned pre-tax profits in the immediately preceding 3 years
- Sales tax registration & relevant business license
Repayment
Repayable between 3 to 5 years
Quantum of loan
Upto 75% of the project cost
Interest
SBM Prime Lending Rate plus spread as per Credit Risk Assessment System.
Rate of interest Click here for latest rates
Security
Hypothecation of current assets/Equitable Mortgage of Immovable property
Insurance
Comprehensive insurance of all securities
Audited Financial Statements must for limits above Rs.25 lacs
The Short Term Corporate Loan is essentially in the form of Term Loan for corporates for certain specific purposes with maturity not exceeding three years
Eligible Purposes
Any genuine commercial purpose in line with the regular business activity of the customer.
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Corporates/industrial undertakings in the C&I segment, which enjoy a good credit rating(internal) of B+ or better
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Corporates/industrial undertaking, in the SSI sector, which enjoy “excellent” credit rating, which have earned profits in the last three years and which have proven track
Repayment Programme
Not more than 3 years. Instalments may be monthly/quarterly/ half yearly and may be equated or otherwise depending on the assessed income generating capacity of the borrowing undertaking or bullet repayments if the cash accruals so justify.
Pricing of the Loan
Interest applicable to one step higher than the applicable risk rating.
Security
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Where feasible, a first and sole charge on the fixed assets of the undertaking OR a first charge on fixed assets on pari passu basis with other term lending institutions to be obtained. Where first charge cannot be taken, for valid reasons a second charge on fixed assets to be taken
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Personal guarantee of promoter-director
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Possibility of obtaining charge on unencumbered assets if any, to be explored, Where the purpose of Short Term Corporate Loan is to shore up NWC, extension of charge on current assets to be obtained.
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Wherever possible, endeavours to be made to obtain pledge of equity shares of prmoters.
As a part of 90th year celbrations, we have introuduced a new product-
Current Account Plus
Name of the Product
Current Account Plus
Minimum Balance
Rs.1,00,000/-
Eligibility
Existing account holders / new customers across all segments other than borrowers
Value Added Services offered
(a)Issue of 30 DDs cumulative value not exceeding Rs.25 lacs per month free of charges./-
(b)Collection of 30 outstation cheques per month with a cumulative value of Rs.10 lacs, free of collection charges. (This facility is only for the account holder’s instruments and not for third party cheques) . Handling charges of Rs.20/- per instrument to be collected
c) SBI Life policy of Rs. 1 lakh coverage. In the unfortunate event of death, SBI Life would pay the assured to the nominee. In the event of the death due to an accident , SBI Life would pay the Nominee double the sum assured. Free of cost, for individuals/proprietor of Proprietorship concern. In case of Partnership firms / Company Accounts any one partner/ Director
SBI Co-branded Credit Card
Free of charges at selected centres where we are authorised to issue
Conditions
As applicable to opening of Current Accounts / required documents. Available in 25 identified branches.
As part of our 90th year celebrations we have introduced a new loan product against rent receivables
Rent Plus
Name of the Product
Rent Plus
Nature of facility
Term Loan
Period of repayment
7 years or the residual period of lease ,whichever is lower
Eligible customer
Owners of buildings and commercial properties which are to be rented or already rented to MNCs / Banks/ Large and medium size corporates
Purpose
To meet liquidity mis-match / any other purpose of the applicants
Net rent (less TDS) receivable for the lease period less our margin Minimum Rs.1 lac...... Maximum Rs.750 lacs for corporates and non-corporates
Margin
15%
Repayment
EMI equivalent to number of months of unexpired lease, maximum 84 months
Rate of Interest Click here for latest rates
Primary Security
Assignment of receivables and recording of Power of Attorney with the lessee
Collateral Security
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First charge on the buildings against the rental of which the loan would be sanctioned. Value of the property should be 1.5 times the amount of loan to be sanctioned. Security of alternate property of equivalent value acceptable
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In case of partnership firms, personal guarantee of partners and in case of limited companies, personal guarantee of directors to be obtained
Insurance
To cover the value of assets charged to the Bank
Processing charges
1% of the loan amount to be paid as processing charges
This product can also be marketed to the landlords of all our branch premises and houses taken on lease for officers who provide a captive market to the Bank
Contact your nearest Branch of State Bank of Mysore or
Chief Manager
State Bank of Mysore
Commercial & Institutional Banking Department
H .O.: K.G.Road, Bangalore - 560009, INDIA
Phone: 91 80 22353901 to 22353909 ; 22353473.extn.378 ; 22259759
Fax: 91 80 22262361
Email:
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