| Objective: | The objective of the scheme is to provide financial assistance for manufacturing sector and Service sectors to the Traders, Petty Business traders and Self Employed to carry out their business activity in the form of Term Loan and Working Capital. |
|---|---|
| Business activities are noted hereunder. | a.Photo Studio b.Xerox Centre c.Engineering works d.Kirana & Fancy Stores e.Internet cafe f.Dhaba or Hotel for Vegetarian g.Iron & Steel business h.Consumer Goods i.Electrical & Electronic Stores j.Agri. Implements Sales k.Cloth Stores l.Mobile Showroom m.Fruit/vegetable vender n.Edible oil Stores o.Barber/ Dhobi Shops p.Non edible oils, lubricants q.Auto mobile spare parts r.Shoe mart s.Book stall and Stationery mart t. Fair price shop u.Two/Three/Four wheeler servicing center |
| Eligibility Criteria: | 1. Applicant should be a permanent resident of Bank’s area of operation. 2. He should have crossed 18 years of age. 3. He should have a “B” Class membership in the Bank. 4. The applicant should have a Savings/Current A/c with the Bank. 5. He should have immovable property i.e. House with RCC roof/Agriculture land. The House site should not be less than 121 sq. yards. 6. The building should have 18’ft clear approach road. 7. The applicant should have clear Title with absolute rights on the property to mortgage to the bank. 8. The taxes/GST should have been paid up to date. 9. The applicant should have valid license to carry out the business. 10. “No Due Certificate” from the service area Banks 11. Online application is mandatoryand no manual applications will be allowed and should be submitted only through PMEGP-e portal. 12. The applicant has to submit detailed project report for the proposed unit. |
| Documents to be produced for sanction of Loan: | 1. The applicant should produce documents of KYC. 2. Application form provided by Bank. 3. Bank account statement for the last Six months. 4. Copies of House Tax receipts for the last 3 years. 5. The income tax assessment for the last 3 years, Salary Slip/ Statement of Income, if necessary. 6. Copy of the business license issued by the authority concerned. 7. Approved Plan of the proposed House to be mortgaged. 8. Records of Agriculture lands. 9. CIBIL report of the applicant `10. Project report for the proposed unit 11. Education/EDP/Skill development training certificate 12. Caste certificate. |
| Security: | Assessment of the value of the property: Value of the property shall be average of the following (3) for sanction of the loan. a. The values have to be taken from the Sub-Registrar of Assurances, b. Local market value certified by the Field Inspection Officer of the Bank subject to 300% of “a” above c. Market value assessed by the approved valuer of the Bank subject to maximum of 300% of SRA valuation *The value shall be 100% average of “a, b and c” above. |
| Quantum of loan: | The quantum of loan shall be i) Maximum of Rs.50.00Lakhs for Manufacturing sector. ii) Maximum of Rs.20.00Lakhs for Service sector. |
| Margin: | 15 to 25% of outlay. |
| Rate of Interest: | 12% per annum. 2% penal interest will be charged in case of Default. |
| Repayment period: | Maximum 7 years in monthly/quarterly/half yearly instalments. |
| Coverage of Insurance: | The proposed unit shall be insured on the name of the applicant and the policy should be assigned to the Bank till the repayment of entire loan amount. |
| Loan Processing and disbursement: | 1. The branch should maintain register for admission and movement of the application. 2. The branch manager should collect 1% processing fee not exceeding Rs.10,000/-, in addition to the legal fee and Valuation fee, and also Share capital of 1% of loan amount maximum of Rs. 35,000. 3. The branch manager should obtain encumbrance certificate for last 25 years. 4. The Branch Manager should verify and check the application and admit the same. Acknowledgment should be issued. The branch manager should conduct preliminary enquiry on KYC and documents furnished. The Branch Manager should visit the residence of the applicant and verify the bona-fide of the address proof and ID proof documents and also verify the immovable properties offered as security and make a note of the details. 5. The branch manager should refer the application with his recommendations to the Asst. General Manager/Dy. General Manager/GM for field verification. 6. The Asst. General Manager/Dy. General Manager/GM should conduct field inspection within two days from the receipt of the application. 7. The Head Office should obtain legal Opinion from the bank approved legal advisor within three days and place for sanction. 8. The Managing Committee of the bank shall sanction the loan on the recommendation of the office. This may be delegated to the Chairman or CEO. 9. After sanction by the Managing Committee or as the case may be, the office shall issue the sanction order within two days. 10. The Branch Manager should give communication to the applicant to execute the documents next day after receipt of the sanction order from Head Office and obtain consent for terms and conditions along with documentation within week days. 11. After documentation the branch manager shall disburse the loan through account on the same day or next, subject to verification/inspection of premises of business etc. 12. The branch manager should obtain the insurance copy before disbursement of the loan. 13. The branch manager should inform to the Head office about disbursement of loan and documents obtained. 14. The branch manager should open loan account in the name of the borrower. 15. The entire process from date of receipt of application till disbursement should be completed within 10days. 16. The Branch Manager should ensure viability of the unit. 17. The Manager should monitor the loan account with proper disbursals, utilization and activity of the unit. |
| Documents to be obtained before disbursement: | 1 Demand Promissory Note and Letter of Continuity. 2 Insurance Policy 3 Mortgage bond 4 Hypothecation Deed 5 Deed of Guarantee, wherever applicable 6 Acceptance letter of Terms & Conditions |