Objective

To provide financial assistance for acquiring specific capital goods/machinery/ equipment by financially sound, profit-making entrepreneurs & for Fresher’s to create employment opportunities for the borrowers;

Eligibility

1. Individuals, Proprietary concerns, Partnership firms, Companies (Private & Public), Limited Liability Partnership firms etc.
2. DIC/SIA/ Udhyam Registration/Contractor Registration Card or any other valid registration of the concerned department;

Exclusions

1. Acquisition of second-hand equipment/machinery;
2. In-house fabrication of equipment/machinery;
3. Grass root projects or major expansion/diversification, which calls for a detailed project appraisal.

Purpose

A. Assistance under the scheme will be for purchase of identifiable item of plant & machinery & other equipments including energy saving systems for modernization/expansion/replacement. Machinery/equipments imported directly will also be eligible.

B. Provide hassle free and timely finance for purchase of Fresh equipment’s for MSME Units (Manufacturing and Service sector), contractors, construction companies, Diagnostic centers, Individuals, Adventure sports etc. including:

1. Backhoe loaders
2. Excavators/ Diggers/JCBs
3. Transit Mixers
4. Wheel loaders
5. Compactors
6. Cranes (Pick N Carry, Heavy Duty, Tower & Derrick)
7. Skid Steers
8. Telehandlers
9. Drillers
10. Dozers
11. Graders
12. Snow Bikes
13. Solar Power plants
14. Heavy DG Sets and

All other necessary equipment’s involved in construction, mining, MSME Units, adventure sports, health sector and all other allied activities.

Extent of Loan

70% of the cost of equipment / machinery plus taxes/duties, transportation & installation charges, depending upon the credit worthiness of the prospective borrower(s) with a maximum of ₹ 100.00 lakhs

Rate of Interest

The rate of interest will be charged by the Corporation equal to the State Bank of Indias Marginal Cost of Fund Base Lending Rate (MCLR) for 1 year tenor as revised from time to time for all lending cases.

Security

1. For Loans Up to Rs 25.00 lakhs:
   For the first time entrepreneurs (Fresher’s) Loans up to Rs 25.00 lakh on the basis of Net worth assets and liabilities of borrower by way of affidavit duly notarized and KYC credentials with hypothecation of the equipment with guarantee cover of two guarantors having sufficient net-worth.
2. For Loans Above Rs 25.00 lakh to Rs 50.00 lacs:
   Shall be in operation for a period of (3) three years & shall be making profit for the last (2) two years. The balance sheet and profit and loss account of registered sister concern may also be taken into consideration in case of new unit.

   Security

   3rd Party Guarantee of two persons having individual net-worth equivalent to 150% of the loan amount with hypothecation of the equipment for exceptionally healthy firms /individuals.

   Or

   To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed therein (CGTMSE guarantee fee to be borne by customer)

   Or

   Mortgage of immovable property (IM) having realizable sale value of at least 60% of loan amount along with personal guarantee of the mortgagor in case of third-party mortgages and guarantee cover of two guarantors of sufficient net worth.

3. For Loans Above 50.00 lakhs to 100.00 lakhs:
   Shall be in operation for a period of (3) three years & should be making profit for the last (2) two years. The balance sheet and profit and loss account of registered sister concern can also be taken into consideration in case of new unit along with guarantee cover of two guarantors of sufficient net worth.

Security

Mortgage of immovable property (IM) having realizable sale value of at least 60% of loan amount along with personal guarantee of the mortgagor in case of third-party mortgages with hypothecation of the equipment along with guarantee cover of two guarantors of sufficient net worth.

Promoters Contribution

A minimum of 30% of the cost of equipment/machinery proposed to be acquired.

Repayment

The Term loan shall be repayable in a period in the range of 3 to 5 years including a moratorium of 3 months from the date of disbursement for purchase of the equipment/machinery depending cost thereof.

Up-Front Fee

No upfront fee shall be charged for Term loans up to ₹25.00lakh. Term loans beyond ₹25.00lakh & up to 100.00lakhs shall attract upfront fee @ 0.375% of the Term loan sanctioned plus GST; Term loans beyond ₹100.00lac shall attract an upfront fee of 0.75% of the term loan sanctioned plus GST. The upfront fee paid shall be non-refundable.

Processing Fees

The Corporation shall charge processing fee as per the structure given here under:

*plus, GST as applicable

EMI Calculator

Documentation

Standard documentation as per norms of the Corporation.