Product Detail
- To provide finance to the contactors for executing contracts/works/supply of goods allotted by Government Departments / Undertakings, Autonomous Bodies, Defense Departments, etc.
ELIGIBILITY
- All contractors registered with State/Central/UT Government with a minimum experience of 1 year and must have completed at least 3 contracts successfully as on the date of application.
SCALE OF FINANCE
- Maximum of Rs. 2.00 Crore.
- Higher quantum of finance can be considered by the Bank on case to case basis
SECURITY
- Primary: Assignment of Receivables and hypothecation of raw materials and consumable stores.
- Note: Power of Attorney (PoA) to be registered by the contractor in favour of the Bank authorizing the contract owner to release payments due to the contractor directly through the Bank.
- Collateral Security:
| Limit | Nature of Security |
| Up to ₹ 10.00 Lakhs | NIL Credit guarantee cover under CGTMSE, wherever available, mandatorily to be obtained at Bank’s Cost |
| Above ₹ 10.00 Lakhs Up to ₹ 2.00 Cr. | Mortgage of immovable property having Fair Market Value not less than 100% of the limit sanctioned and third party guarantee of two persons of sound financial means to withstand the liability |
| Note: The Bank at its discretion may waive off Third Party Guarantee in cases where Forced Sale Value of the mortgaged property is at least 100% of the Limit Sanctioned. | |
PROCESSING CHARGES
As per existing ‘Service Charges Schedule’ of the bank.
RATE OF INTEREST (SUBJECT TO CHANGE)
- Upto Rs 15 lacs: RLLR+3.00% (Floating)
- Rs. 15 lacs and Above: As per internal rating.
NATURE OF FACILITY
- Fund Based facility in the shape of SOD
- Non-Fund Based Facility (Bank Guarantee, Letter of Credit) as per requirement
