Asset Backed Loan

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Asset Backed Loan
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Purpose

For build-up of current assets and fixed assets needed for business purpose, capacity expansion, modernization, short term working capital (including shoring up of Net Working Capital, etc).

Features

  • Nature of Facility Dropline Overdraft. Both FB & NFB (LTV: 50% of realizable value)
  • Target Group : All Business Units who want to avail loan facility for manufacturing and services activities along with self-employed and professional individuals covered by MSMED Act 2006, wholesale/retail trade.
  • Quantum of loan (Min/Max)
    • Minimum loan amount: > Rs 10 lacs
    • Maximum loan amount: Rs. 20 crores
  • Margin (%) : Minimum 25% cash margin for NFB facility
  • Pricing : Competitive Interest Rate Linked to MCLR
  • Repayment Period
    • Dropline OD: Limits can be sanctioned for periods ranging from 12 months to 180 months with either equated reduction in limit or customized reduction in limit, depending upon the cash accruals. Moratorium under the scheme should not be more than 18 months based on activity. Interest to be serviced monthly during the moratorium period.
    • The drawing power shall be reduced monthly so as to have the overdraft liquidated at the end of the period
  • Processing Fee / Upfront Fee : 1% of the limits (Upper Cap: Rs.10 Lacs)

Eligibility Criteria

  • Existing Customer already availing credit facilities from us.
  • New units with marketable assets to offer as security.
  • Takeover of existing units from other Banks/ FIs with satisfactory track record.

Collateral Security

Immovable property in the form of Equitable / Registered Mortgage of land & building, by way of first charge.

  • Industrial property both leased & freehold/land/plot cannot be taken as security for ABL.
  • Leasehold property can be taken subject to the conditions mentioned above under the head “Eligible Security”.
  • No Second Charge or Pari-Passu charge will be extended for other Bank/FI.

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Interest Rates

6.80%* p.a.

w.e.f. 01.01.2021

*T&C Apply.

 

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