To meet borrower’s liquidity mismatch (Proceeds of loan amount not to be used for any speculative purposes, whatsoever, including speculation on real estate and equity shares). A Certificate regarding the end use of funds should be obtained stating that the funds will be utilised for the purposes required in the usual course of business and not utilised for speculative, real estate purposes.
Type of Facility : Term Loan
Target Group : All MSME Units along with Individuals which are owners of Residential & Commercial Properties let out on Rent
Quantum of loan (Min/Max)
Min: Rs. 10 lacs
Max: Rs. 50 Cr for NBG; 500 Cr for MCG
Scale of Finance :
a. 95 % of Net Present Value (NPV) of net rent receivables as per 1 yr MCLR OR
b. 70% of realizable value of the property mortgaged OR
c. Upto Rs.50 crore: 70% of net rent receivable for the residual lease period including the period covered under one renewal or loan tenor, whichever is less
Above Rs.50 crore: 75% of net rent receivable for the residual lease period including period covered under renewal clause or loan tenor, whichever is less
Pricing : Competitive Pricing Linked to MCLR
Repayment Period Repayment of loan should be through EMI. An escrow account should invariably be opened with our Bank for credit of rentals against which the loan is sanctioned.
Processing Fee/Upfront Fee : As per extant instructions