State Bank of Mysore

Trusted Service

Commercial and Institutional Banking Schemes

Scheme for Trades -Liberalised Trade Finance

Handy Loans Scheme

Corporate Loan

Current Account Plus

Rent Plus

SBM Paryatan Plus

SBM School Plus

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%.

The loan component shall not exceed 90% of the total requirement as worked out or 65% of the value of the collateral security offered, whichever is less.

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.

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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

Limit is available for a period of 12 months, renewable annually.
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

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Corporate Loan (Earlier Name: Short Term Corporate Loan)
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.

Eligibility Criteria
  • Corporates/industrial undertakings in the C&I segment, which enjoy a good   credit rating(internal) of B+ or better
  • 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

  • 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 
  • Personal guarantee of promoter-director
  • 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.
  • 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.

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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

Quantum of finance
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

  • 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 
  • 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

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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 extn.378 ;
Fax: 91 80 22262361
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 
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State Bank of Mysore,
H .O.: K.G.Road,
Bangalore - 560254, INDIA.
Phone (EPABX): 91 80 22353901 (30 lines of PRI)
Fax: 91 80 22283684

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