• Exclusive scheme providing hassle free credit for the conversion of residential properties into tourist guest houses (renovation/refurbishment only)

• The house should be owned by the borrower, suitably located and having a motorable approach. The house should not be more than 15 years old.
• Proper registration with the Tourism Department, J&K Government, and permission for the conversion/ renovation/ refurbishment from Municipality/ concerned authority, wherever necessary. - The guest house should be managed by the owner himself. - The prospective borrower required to submit proper estimates/project report for the renovation/refurbishment plan for the proposed guest house to assess the viability. 
• The renovation/refurbishment should be completed within a period of three months from the date of first disbursement. - The existing hotels/guest houses already registered with the Tourism Department not come under the purview of this scheme.

• Maximum: 50,000/= per room and 10.00 lacs per guest house.

• Cost on account of renovation, painting, bedding, furniture, dinning table, flooring, crockery, cutlery, colour television etc., required for renovation/refurbishing of the house.

• Primary: Hypothecation of all furniture fittings and other movable assets of the guest house.
• Collateral: Upto 2.00 lacs: Third party guarantee of two persons having sufficient means to withstand the liability. Above 2.00 lacs: Mortgage of the house property/guest house.

• 30%

• Click here for rate of Interest

• 6 months.

• a) Finance to Growers
  i. Assessed on entire fruit bearing orchard owned by the grower farmer or any of his family member.
  ii. Upto an individual credit limit of 1.00 lac no revenue record of land holding is required.
  iii. The credit limit of Growers is to be assessed and sanctioned for a period of 3 years. The limit will get automatically renewed annually subject to satisfactory conduct of the account.
  iv. Option for the grower to enter the scheme to avail the financial assistance at any of the following stages:
  • Pre-harvest stage for production cost.
  • Harvesting stage for picking/ packing/ grading.
  • Post harvesting stage for marketing.
  • For entire production & marketing cycle.
  v. The grower is not required to submit any financial statement/ balance sheet for sanction of credit facility excepting personal statement and land holding record wherever required in addition to papers under KYC norms.
  vi. Option for additional financial assistance for carriage and cold storage of the produce as per stipulated rates.
  vii. No collateral Security upto the loan limit of 1.00 lakh.
  
  b) Finance to the Traders/Arthias/Commission & Forwarding Agents
  
  i) The scale of finance to be assessed on the basis of number of fruit boxes marketed/ forwarded during the previous year with a reasonable increase based on average growth during the last three years.
  ii) The average per box market price will be aligned to the actual market rates.
  iii) Hassle free renewal of the credit limit from January onwards subject to satisfactory conduct of the account.
  iv) Option for additional financial assistance for cold storage of the produce as per stipulated rates.
   

• To provide comprehensive and timely financial assistance with flexible and simplified procedure adopting whole farm approach taking care of the production/marketing credit needs of Apple Growers/Traders/Arthias/Commission & Forwarding Agents of the J&K State with a reasonable component for consumption/subsistence of the growers.
  
  Under the scheme finance will be available for following components:-
  
  Production/Input Cost
  • Cost of fertilizer
  • Cost of fungicides/pesticides/insecticides etc.
  • Cost of fertilizers/fungicides/pesticides/insecticides application
  • Cost of Watch & Ward and
  • Post Harvest maintenance
  
  Marketing Costs
  • Cost of Boxes
  • Cost of Packing Material
  • Cost of Picking, Packing & Grading
  • Cost of Transportation
  • Cost of Cold Storage of produce (optional)

• Cash Credit /SOD
• SOD

• All Fruit Growers/Orchardists owning orchards with fruit bearing trees.
• All Local Traders/Arthias/Commission & Forwarding Agents having a market standing of at least one year.
   

• Primary
  • Hypothecation of fruit crop/packing material.
  • Hypothecation of book debts.
   
• Collateral:
  

  Limit	Security
  Upto 1.00 lac	Nil other than personal guarantee of the borrower
  Above 1.00 lac upto 5.00 lacs	Third party guarantee of two persons
  Above 5.00 lacs	Mortgage of orchards/immovable property with a minimum value of 125% of the credit limit.

  
   
• Margin
   

  Grower	10%  (to be contributed in the shape of labour incurred on fertilizer/pesticide/fungicide application and post harvest maintenance)
  Trader	25%

  sddsd

• 400/- (upfront in case of Third Party Guarantee)
• 500/- (upfront in case of Mortgage).

• 25%.

• Click here for rate of Interest

• To provide adequate and need based financial assistance for cultivation of saffron. The term loan shall cover the entire plantation & production costs including plant material, agricultural machinery, labour, etc.

• Agricultural Term Loan

• All saffron growers including small, marginal & large farmers including contract farmers engaged in cultivation of saffron or intending to commence the cultivation of saffron.

• The unit cost, Margin & maximum amount of finance inclusive of the interest during moratorium (capitalized) shall be as follows:
   

• The finance shall take care of 1st & 2nd year’s costs.
• Minimum unit size to be financed under the scheme will be 0.5 Kanals. The unit-sizes indicated in the Tables-above are for I Kanal of land. However, in actual cases the unit size can be of varied sizes. The unit cost of the farms should therefore be calculated in proportion to the unit cost prescribed in the Tables.
• For the purpose of loan limit, the amount of Interest during moratorium has been calculated on worst –case scenario assuming that 1st & 2nd installment during year 1 are disbursed during April. However, in practice branches shall calculate the interest during moratorium on actual disbursement basis.
   

• Minimum -                 0.06 Lacs

• Maximum -                10.00 Lacs.

• The loan facility sanctioned under the scheme shall be disbursed as follows:
  a) 90% of loan amount including Margin but excluding amount earmarked for interest charged during moratorium to be disbursed in 2 installments in the Year 1 during the months of April –August as per the requirements of the grower.
  b) 10% of loan amount including Margin but excluding amount earmarked for interest charged during moratorium to be disbursed during April-August of 2nd year.
  c) Amount earmarked for interest to be released on yearly basis for servicing of interest during moratorium. Interest for remaining period of moratorium, i.e. 8 months shall be applied as well as disbursed at the end of the moratorium period.

• There shall be an initial moratorium of 20 months from the date of disbursal of loan. Interest for the moratorium shall be capitalized.

• Option 1 : Interest for the moratorium period shall be capitalized. At the end of the moratorium period, the outstanding loan amount inclusive of capitalized interest shall be paid in three yearly installments in the ratio of 20, 35 & 45% with the first installment to be paid immediately after completion of the moratorium period. Interest for the period after initial moratorium shall be paid along with the annual installments.
• Option 2 : This option shall be similar to the first option except for the difference that here a borrower shall pay the interest portion every month after the moratorium period till the liquidation of the loan at the time of payment of 3rd yearly installment.

• Nill

• Click here for rate of Interest

• To provide finance to occupants desirous of acquiring freehold rights of the land under their occupation, as per the SRO-64 dated 5th March 2007, issued by Govt of Jammu & Kashmir.

• Term Loan

• Permanent residents of J&K State/Educational, religious, charitable, non-profitable, social institutions/trusts/societies, political parties recognized by election commission of India, etc who have to pay a certain sum to the State Government for acquiring freehold rights of the state land under their occupation in response to a notice from Deputy Commissioner of the concerned district or from any other authorized official of State Govt.  under Sec.8 (3) of J&K State Land (Vesting of ownership to the occupants) Act 2001.

• 3 times net annual income of the borrower subject to the condition the home take income, after including the deductions on account of this loan also, is at least 40% of the gross income. Income of the family i.e. spouse and other natural successors can also be considered for working out the quantum of finance, subject to the stipulation of 40% minimum home take income for the family’s gross income. 

• The maximum finance under this product shall be the amount of total payment to be made as per the Govt.notice under Sec 8 of J&K State Land Act, 2001 received by the occupant and the incentive rebate or penalty applicable to the occupant in accordance with the Fixation of price (Annexure-I) & Incentive /penalty for payments (Annexure-2) prescribed under the Govt. notification under SRO-64, subject to stipulations of Quantum of finance prescribed above.

• 10% on the amount to be paid for acquiring the freehold rights after incorporating the incentives/penalties applicable to the occupant

• Primary: Mortgage of the land and the assets thereon.
• Collateral: Guarantee by family, i.e.spouse and natural successors in case their income has been considered for working out the quantum of finance and the repayments

• 60 Equal Monthly Installments.

• Nil

• Allowed subject to prepayment penalty @1% on the pre-paid amount

• For Commercial Occupants          0.25% of loan amount.
• For residential use                      0.01% of the loan amount or 10000/= whichever is less. 

• The total amount including the margin will be paid to the concerned Dy. Commissioner against a receipt and the delivery of the title to the land in favour of the occupant.

• Term Loan

• To provide adequate and timely credit for comprehensive requirements of Artisans & Craftsmen, etc.

• All Artisans, Craftsmen and other people aged 18 to 55 years, associated with below-mentioned activities:
  • Artisans, which shall include:
    • Namda Sazs/ /Wood Carvers/ Fur Garments/Leather Garments/Paper Machine Makers/ Willow Wickers.
  • Copper Smiths
  • Kangdi Makers
  • Tailors/Boutique

*However, Branch Heads can identify other activities in their respective service areas and apply for inclusion of these activities within the ambit of this product.

*Carpet –Weaving, Kani-Shawl weaving & Shawl Embroidery are not financed under this product, as a separate product “JKBank Dastkar Finance” has already been introduced for these activities.

• Comprehensive insurance of hypothecated assets

• 0.05% of the amount sanctioned with a minimum cap of 25/- to be paid upfront

• Click here for rate of Interest

• 2 ½ years with repayment schedule as prescribed above.

• Term Loan / Working Capital Term Loan (WCTL)

• To provide adequate and timely credit for comprehensive requirements of Artisans & Craftsmen, etc.

• All Artisans, Craftsmen and other people aged 18 to 60 years, associated with below-mentioned activities:
  • Carpet Weaving
  • Shawl Embroidery
  • Kani Shawl Weaving.
  • Chain Stitch
  • Crewel
  • Wood Carving
  • Paper Machie
   

• The Quantum of finance, Moratorium Period and the Repayment Schedule for each of these activities shall be as follows

• Hypothecation of SIP / FG &
  Cover under Credit Guarantee Fund Scheme of CGTMSE
   

• 10% both for TL and WCTL

• Comprehensive insurance of hypothecated assets.

• Upfront Guarantee fee 1.00%, Annual Service Fee 0.50%. The upfront and service fee shall be borne by Ministry of Textiles, Government of India in case of craftsmen having Artisan Card of Dir. Handicrafts, J&K State. However, craftsmen who don’t possess Artisan Card shall have to bear both the fee themselves

• 0.05% of the amount sanctioned with a minimum cap of 25/- to be paid upfront.

• Click here for rate of Interest

• WCTL to be repaid bullet after moratorium
• TL in 24 EMIs after moratorium. Interest for moratorium to be capitalized.

• Cash Credit /SOD facility

• To provide adequate and hassle-free working capital finance to Walnut kernel Traders for taking care of the expenses involved in procuring and sales of kernels.

• All Persons engaged in trade of Walnut kernels & having previous experience/track record.

• 40% of the projected sales turnover or 60% of the forced value of the property offered for mortgage, whichever is lower.
• Projected sales turnover must be supported by the actual turnover through the account, which should be at least 50% of the projected sales turnover.
• Borrower must also submit Audited Financial statements/ Exporters Statement/ previous Watak Report or Challan of Transport to support the projected sales turnover.

• 25% of the limit sanctioned.

• Click here for rate of Interest

* Third Party Guarantee shall be accepted only if the quantum of limit is upto 2 lacs only, subject to the satisfaction of the Branch Manager. Otherwise the finance shall be secured by mortgage of immovable property.

• Forced value of the property must be based on latest valuation report (not older than 3 months.) of the Bank’s approved valuer. Branch should satisfy itself about the valuation strictly as per circular no. CR-74-203 dated 01-11-2002. The valuation shall be reviewed annually thereafter.

• The stocks in trade / stocks in transit & the mortgaged property must be comprehensively insured against all risks for its value with usual bank clause at party’s cost.

• 400/-to be paid upfront in case of Third Party Guarantee & 500/- to be paid upfront in case of Mortgage.

• 25% of sanctioned amount from May to July &
  Rest of the sanctioned amount from August to November

Adjustment/
Renewal/
of Limit

• The account is to be adjusted by reduction in the credit limits by 20% each month starting December onwards  till the final adjustment of the account in April every year.
  Subject to above stipulations, the limit under the scheme shall be reviewed annually and revised/ cancelled /enhanced depending on the performance of the borrower.

• A penal interest of 2% over & above the applicable interest rate shall be charged on the outstanding balance in the event of non-adjustment of limits on due dates.

• To provide adequate & timely credit for comprehensive requirements of the Khatamband Craftsmen.

• Working Capital finance in the nature of Cash Credit facility on revolving basis.

• Artisans associated with the Khatamband trade.
  The age of the applicant must be between 18-55 years

• The total credit should not exceed 1,00,000/- per Unit*. The amount of loan shall be as per the estimate of cost per head/month (Annexure-1)
  *A Khatamband unit is comprised of at least 4 craftsmen.

• 20% of the amount sanctioned.

• Click here for rate of Interest

• Hypothecation of stocks (Raw materials, semi- finished & finished goods) created out of Bank finance.

• Third party guarantee of two persons, preferably fellow unit-holders.

• The account must be brought into credit at least once a year. However, interest shall be serviced on monthly basis.

• Comprehensive insurance of hypothecated stocks.

• 0.05% of the amount sanctioned with a minimum cap of 25/- to be paid upfront.

• The limit under the scheme shall be reviewed annually and revised/ cancelled /enhanced depending on the performance of the borrower

• To provide Finance for possession and use of commercial property being Shop/s, Office/s, etc and leased out by Government/ Semi-Government and Autonomous bodies.

• Term Loan

• Any one of the following is eligible:
  • Individuals
  • Proprietorship Concerns
  • Professionals or self employed persons
  • Partnership firms.
  • Companies

*The applicant must have a business standing of at least 3 years.

• 4 times net annual income subject to a maximum cap of 50.00 Lacs. Income of spouse will also be considered for married applicants

• 25% of lease premium. Earnest money paid shall be considered for margin requirements.

• Click here for rate of Interest

• Primary:Mortgage of lease-hold rights in the property acquired.
• Collateral: 3rd Party guarantee of two persons/ Mortgage of Immovable property as per the satisfaction of the Branch Manager.

• 60 to 84 Equal Monthly Installments.

• 1 Month from the date of first disbursement.

• Prepayment allowed subject to prepayment penalty @1% on the pre-paid amount

To provide finance for purchase of Laptop/ PC’s to regular students of recognized schools, colleges & universities in India, i.e.

1. Regular students of recognized schools & colleges from LKG to 12th Class.
2. Graduation courses: BA, B.Com, B. Sc, BVSc etc.
3. Post graduation courses: Masters, M.Phil. and PhD.
4. Professional degree courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.

• Persons whose minor children/wards are regular students of recognized schools/colleges/institutions in India.( loan to be provided to Parents/Guardians)
• Students, aged 18yrs and above, pursuing regular courses in any of the recognized colleges /institutions/universities of India ( loan to be provided to student with parent /Guardian as co-borrower).
• Regular teachers of recognized private schools.
• In case of parents/guardians who are employees, the age on the date of maturity of loan should be less than the retirement age. 65 years for all others. This shall apply to parents/Guardians in the capacity of direct borrowers as well as co-borrowers. This shall apply to teachers of private schools also.
• Borrowers/Co-borrowers should have regular and adequate income to repay the monthly loan installments.  Business units should ensure that the home-take salary/Income of the Borrower/Co-Borrower after including all deductions including installments on account of this loan should be at least 40% of the Gross monthly salary/income.*
• Since purchase of computer is covered under our educational loan scheme as well, finance under this product shall not be available to those students who have already availed educational loan from our bank subject to condition that computer was included in loan composition of education loan facility, so availed.
  
  

*In case of students with parent/Guardian as co-borrower, the income criteria shall apply to co-borrowers only.

• Maximum 50,000 with 10% margin.

• Primary:
  Hypothecation of article financed.
• Collateral:
  
• No Collateral security required for Government employees drawing salary through our Branches & where letter of confirmation is available.
• Third Party Guarantee of one person for all other categories. However, business unit heads can relax the third party guarantee requirement in case of the following Categories:
  1. Platinum Current account holders, Gold Current Account holders & premium plus Current Account holders, maintaining satisfactory accounts for at least last 6 months.
  2. Cash Credit account holders having a limit of above 5 lacs and maintaining satisfactory account for at least last 6 months.
  3. Fixed Deposit holders having term deposits in the Business unit equal to 100% of the loan amount. The fixed deposit shall be under lien to the Bank.
• Collateral Security for Teachers (Private Schools):
  
  Guarantee from the institution or third party guarantee of one person acceptable to the Bank.
  
  

• Nil.            

• Click here for rate of Interest

• 30 Equal Monthly instalments

• There shall be no penalty on Prepayment of the loan

• Nil

• To enhance the productivity of local sheep in terms of wool and mutton production, by crossing them with superior quality breeding rams.
• To ensure elimination of sheep with pigmentation, coarse wool and such other undesirable characters through selective breeding and rigorous culling.
• To improve the economic condition of sheep breeders by increasing the productivity of their sheep, providing them subsidized inputs and remunerative prices for their produce.
• To provide increased opportunities of livelihood to small/marginal farmers, agricultural labourers, entrepreneurs, unemployed youth etc.

• 50 Crossbred Ewes

• Two Quality Breeding rams to be provided free of cost by Directorate Sheep Husbandry for breeding coverage.

• 15% of unit cost

• Term loan component of 17,200/- plus margin amount of 37800/- from the borrower shall be utilized for construction of low cost shelter and procurement of equipment as per technical specification provided by Directorate of sheep Husbandry.
• The cost of live stock i.e. 1,50,000/- .shall be remitted out of the Term Loan component directly in favour of the supplier of live stock., after ensuring proper end use of funds released for shelter and equipment.
• Grazing, feeding & Vet. Healthcare charges of 32, 800/- per unit shall be released to the borrower in four equal quarterly installments of 8, 200/- each. 1st installment shall be disbursed immediately after procurement of live stock.

• 6 years including Moratorium of one and a half year from 1st Disbursement.            

• The Term loan facility of 2.00 lacs shall be repaid in 10 equal half yearly installment of 20, 000/- each starting after 18 months from 1st disbursement.

•  Hypothecation of live stock, and other assets created.
• 3rd party guarantee of two persons, having sufficient means to withstand the liability.

• The borrower can pre pay the Term loan after initial lock in period of 3 years from the date of disbursement. The Subsidy component over and above the actual utilization in such accounts shall be returned to the Directorate of Sheep Husbandry Via account Payee instrument.

• Borrowers under the scheme shall be identified & sponsored by Concerned District Sheep Husbandry Officer.

• The Department shall provide two good quality rams free of cost to each unit for breeding coverage.
• The department shall provide round the year free veterinary healthcare /aid to each Mini sheep Farm. The medicines required for the purpose and available with the Deptt. Shall be provided to the unit at subsidized rates.

• Nil

• Construction Contractors approved by / registered with the Government / Defence agencies that are established / experienced in the business for a minimum period of 1 year and must have successfully executed and completed 2 to 3 contracts.

• Maximum Limit under this product shall be 2.00 Crore. For limits exceeding 2.00 Crore, assessment shall be carried out as per the norms / guidelines laid down in the Bank’s credit policy.

• 25% cash margin

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. The PoA to be got acknowledged and accepted by the contract owner.

Collateral:
 

Limit	Nature of Security
Upto 5 lacs	Third party guarantee of TWO persons of sufficient means
Above 5 Lacs and upto 10 Lacs	Third party guarantee of TWO persons and mortgage of immovable property having market value not less than 70% of the limit sanctioned
Above 10 Lacs and upto 25 Lacs	Third party guarantee of TWO persons of sufficient means and mortgage of immovable property having market value not less than 90% of the limit sanctioned
Above 25 Lacs	Third party guarantee of TWO persons of sufficient means and mortgage of immovable property having market value not less than 100% of the limit sanctioned
Note: Third party guarantee may be waived if the market value of the mortgaged property is at least 125% of the limit sanctioned.

• As prescribed for working capital facilities in the “Service Charges Schedule.”             

• Click here for rate of Interest

• Finance under this product shall be available for acquiring machinery/equipment  etc that qualifies as an embodied technology .An indicative list is as under:
  a) Replacement of existing machinery /Technology with an upgraded one.
  b) Expansion of existing unit using new technology keeping the original unit intact*.
  c) Installation of improved packaging technology as well as anti-pollution measures, energy conservation machinery, in-house testing facilities and computerization of office records & management.
  *Existing viable & functional units shall be allowed to continue with the current operations and expansion under the scheme will be for an additional production line.
   

• Priority Sector Advance to MSE Sector.

• The definition of Micro & Small enterprises shall be same as defined under MSMED ACT,2006, i.e.:
  
  (A) MANUFACTURING ENTERPRISES
  
  (i) Micro Manufacturing Enterprises:
  The investment in plant and machinery does not exceed 25 lakhs
  (ii) Small Manufacturing Enterprises:
  The invesetment in plant and machinery is more than twenty five lakh rupees
  but does not exceed 5 crores
  
  (B) SERVICE ENTERPRISES
  
  (i) Micro Service Enterprises:
  The investment in equipment does not exceed 10 lakhs.
  (ii) Small Service Industries:
  The investment in equipment is more than 10 lakhs but does not exceed 2 crores.
   

• Technology upgradation would mean a significant step up from the present technology level to a substantially higher one involving improved productivity, and/or improvement in the quality of products/services. It would also include installation of improved packaging techniques as well as anti-pollution measures and energy conservation machinery. Further, the units in need of introducing facilities for in-house testing would qualify for finance, as the same is a case of technology upgradation.
  
  Replacement of existing equipment/technology with the same equipment/technology will not qualify for finance under this scheme, nor would the scheme be applicable to units upgrading with second hand machinery.
   

• Existing MSE units, located in J&K State, registered with the State Directorate of Industries. The units must be operational for at least 3 years as on the date of application for availing finance under this product.

1. Existing MSE Units located in J&K State.
2. The units must be registered with Directorate of Industries or the concerned registration authority.
3. Units may be in the form of Sole proprietorship, partnerships, Co-operative Societies, Private & Public Limited Companies,etc.
4. Women entrepreneurs shall be given preference
5. Sick /non functional units shall not be eligible. Defaulters of the Bank shall also not be eligible, until & unless existing outstanding liability is cleared.
6. Acquisition of new technology/machinery must not result in change in the status of the unit to medium sector. However, change in status from micro to small enterprise shall be allowed.
7. Units which have availed benefits under technology upgradation schemes from Government any other institution shall not be eligible.
8. Units under finance from JK Bank shall be eligible. Units which are not availing loan from any Bank/FI shall also be eligible. However, units availing finance (T.Loan and/or W.Capital) from other Banks/FIs shall not be eligible.

1. Project Finance (T.Loan) under this product shall be made available for:
   a. Cost of new Machinery/Technology.
   b. Removal charges of old machinery (technology) and Installation of new machinery (technology). However, these costs should not exceed 15% of the total cost of machinery/technology to be acquired under the scheme
   c. Operative/Administrative expenses for the transition period (Wages, Rent, taxes, etc) wherever existing technology/machinery is replaced with a new one. However, if new machinery/technology is installed as an additional line, only normal pre-operative & preliminary expenses shall be included in the project cost.
   d. Salvage value of existing machinery/technology, if any, shall be adjusted towards the margin requirement or liquidation of existing bank loan, if any. Existing machinery shall be disposed of by inviting quotations from the interested buyers or sold off as scrap.
   e. In case the existing machinery is to be replaced with new one, the total finance shall also include a component equivalent to the outstanding bank finance (against existing machinery/technology), if any. This component shall be used for adjusting the existing bank finance ((against existing machinery/technology).

• Moratorium period shall be comprised of maximum Implementation period of 6 months & maximum Gestation period of 6 months. Repayment period shall not exceed 8 years including the moratorium period.

• Hypothecation of Machinery, etc acquired out of Bank Finance under this product.
• Extension of charge in case the borrower is availing credit facility from the Bank and has provide collateral security in the form of mortgage of immovable property.
• CGTMSE cover in cases where collateral isn’t available for existing finance or where no finance is outstanding or has been availed by the borrower (For loans upto 50 lacs).
• Fresh NOC from lessor (SIDCO, etc) in case the unit is on leased land.
• NOC from the concerned Banks/FIs in case the borrower isn’t availing T.Loan and /or WC facilities from our Bank.
   

• 10 % of the upgradation cost.

• Comprehensive insurance of the new machinery with the usual bank Clause. In case the existing Unit/Machinery isn’t insured, same must be insured by the borrower.

• Nil

•  Micro Enterprises: PLR-1.25%*
• Small Enterprises: PLR-0.75%.*
• In case of enterprises where the total exposure(T.L & WC) is above 20 lakhs, the above rates shall be applicable for first 2 years only after which the pricing shall be linked to Credit Rating of the Unit(Risk based pricing) to induce units to acquire better ratings and thereby to benefit from the most attractive interest rates.
• 0.50% discount in rate of interest shall be given to women entrepreneurs.
  *Status of unit as Micro & Small enterprise shall be determined on the basis of status acquired after acquisition of new machinery/technology.
   

• Application Form
• 2 Photographs of Borrower
• Comprehensive project report detailing viability and feasibility of the project. Among other things, it should provide details about economic, financial, technical, market, & environmental specifications.
• Documents as per KYC norms, in case not already provided to the concerned Business unit.
• Quotations for machinery/technology to be acquired.
• Details regarding the existing credit facilities availed by the borrower from our bank, if any.
• Copies of permissions, licenses and NOC’s from concerned agencies required for installation of machinery/technology and for operating the Unit
• Board Resolution for raising of the finance.(For Companies only)
• Copy of registered Partnership Deed.(For Partnership Firms only)
   

• D.P .Note
• Loan Agreement.
• Hypothecation Agreement.
• Affidavit of the Borrower
• Letter of Undertaking.
• Irrevocable power of Attorney of borrower.
• Mortgage Deed (Deed of further Charge) to be obtained in cases where the previous loan is secured by Mortgage of property which is existing.
• Affidavit of the Mortgagor (Wherever applicable)

• Directly to suppliers of Technology/machinery. Finance on account of Miscellaneous expenses shall be disbursed to borrowers.

• As per existing sanctioning power structure.

• Working capital requirement shall be part of the detailed project report to be submitted by the unit holder. Acquisition of new machinery/technology may alter the working capital requirement of the unit. Accordingly, the existing working capital facility of the unit may be reviewed/revised as per requirement.
  In case of unit holders who are not availing any working capital facility from the bank, the need based requirement shall be worked out as a separate facility.
  Arrangement for working capital to be ensured while taking up the project for upgradation.
   

• Exceptions to the various features /guidelines of the product can be allowed on case to case basis .The powers for the same shall be vested with the Chairman.

• Eligible units which don’t avail the above scheme shall not be considered for benefit under any rehabilitation scheme of the bank .

• Bank shall factor the financial incentives available under the schemes offered by various Government agencies/institutions for technological upgradation to entrepreneurs availing finance under this scheme as & when such incentives are available to the borrowers.

• To provide adequate and need based financial assistance for commercial cultivation of Flowers.
   

• All individuals/entities having registration with Dept of Floriculture.
•  Applicant/s should have at least 1 Kanal of cultivable land (on which the green house is to be constructed), either in his/their own name or on lease hold basis (with mortgage rights) for availing loans for construction & operation of upto 2 green houses and at least 2 Kanals for 3 green houses. In case of Gladiolus cultivation the applicant/s should have at least 4 kanals of land either owned in his/their own name or on lease basis with mortgage rights.
• In case the land belongs to parents/spouse, then they shall be involved as co-borrowers.
• Applicant must have know-how of floriculture. He must either have a Degree/Diploma in Agriculture from a recognized institution, or he must have undergone training from the Floriculture Department or some other recognized institution like E DI.
• Applicants having a track record of over 3 years experience in production and sales of flowers shall also be eligible .They shall be exempt from the educational/ training criteria.
• Finance for more than one Green house or for cultivation of Gladiolus on more than 4 Kanals of land shall be provided only to the floriculturists having a sound track record of at least 4 years.
• Age of applicants should be between 18 to 65 years.
• Applicant must be a State Subject.

The quantum of the product finance and the requisite margin money shall be as per below.

 

The unit cost, Margin & maximum amount of finance shall be as follows: A) Finance for cultivation under Green Houses a) Composite loan for cultivation of
i) Lillium	Amt in
a) Unit Size	20 x 80 ft
b) Capital Cost for construction of Greenhouse's	3,50,000
c) Operative Expenses	2,25,000
d) Total Cost	5,75,000
e) Margin @ 20% of d.	1,15,000
f) Total Loan Amount	4,60,000
g) TL component	2,80,000
h) WCTL Component	1,80,00
ii) Carnation
a) Unit Size	20 x 80 ft.
b) Capital Cost for construction of Greenhouse's	3,50,000
c) Operative Expenses	1,15,000
d) Total Cost	4,65,000
e) Margin @ 20% of d.	93,000
f) Total Loan Amount	3,72,000
g) TL component	2,80,000
h) WCTL Component	92,000
iii) Rose
a) Unit Size	20 x 80 ft
b) Capital Cost for construction of Greenhouse's	3,50,000
c) Operative Expenses	70,000
d) Total Cost	4,20,000
e) Margin @ 20% of d.	84,000
f) Total Loan Amount	3,36,000
g) TL component	2,80,000
h) WCTL Component	56,000
B) Finance for cultivation of Gladiolus in Open Fields
a) Unit Size (size of land)	4 Kanals
b) Capital Cost	2,20,000
c) Operative Expenses	3,00,000
d) Total Cost	5,20,000
e) Margin @ 20% of d.	1,04,000
f) Total Loan Amount	4,16,000
g) TL component	1,76,000
h) WCTL Component	2,40,000
The size of Green House used for above calculations is of the size 20 x 80 ft. However, branches may finance other sizes also .The cost, finance etc involved in such cases must be calculated proportionately. The Term Loan & WCTL indicated in case of Gladiolus is for a unit size of 4 Kanals of land. However, branches may allow other sizes, subject to a minimum of 4 Kanals of land and maximum of 12 Kanals of land. Margin amount is to be paid upfront in proportion to the amount disbursed.

 This amount has been calculated for 1 Green house in case of flowers grown in Green houses, and for 4 Kanals of land in case of Gladiolus which is grown in open fields. The cost of Green house has been calculated for a standard size of 80 x 20 ft.; for different sizes the cost should be calculated on pro rata basis. Similarly, a common Green house has been used for calculating the finance amount. In case, the borrower wants finance for hi-tech ones, the cost amount over and above the one used for common green house has to be contributed by the borrower.

Maximum finance for upto 3 Green houses can be provided, subject to a maximum of 15 lacs. In case of Gladiolus the maximum finance shall be for 12 kanals of land holding subject to the ceiling of 15 lacs. Proposals for higher finance shall be treated as project finance and subjected to normal assessment as is done in case of other cases in that category.
 

• Security to be obtained :
  
  Upto 5 lacs
   1) Hypothecation of the stocks &Assets created.
   2) Third Party Guarantee of Two person
  
  Above 5 lacs to 15 lacs
   1) Hypothecation of the stocks & Asset created
   2) Mortgage of immovable property, preferably the land on which the activity is undertaken, having value at least equivalent to 100% of the sanctioned amount. Security of additional immovable property should be taken in case the value of land is less than the sanctioned amount.

• The moratorium period shall be 6 months.

• At the end of moratorium period, the outstanding loan amount inclusive of interest during moratorium is to be repaid in 9 equal half-yearly installments. Maximum repayment period shall be 5.0 years inclusive of moratorium.

• 0.5% of the loan amount sanctioned subject to a maximum of 3,000.

• Click here for rate of Interest

• To provide finance to eligible candidates sponsored by JKEDI under the Seed Capital Fund Scheme of Government of Jammu & Kashmir.
   

• Finance under this product shall be available to trained and registered first generation entrepreneurs sponsored by the JKEDI under the Seed Capital Scheme to start environment-friendly ventures relating to certain core areas of the state economy which inter-alia shall include:
  i) Horticulture, floriculture, cultivation of medicinal and aromatic plants;
  ii) food-processing at the household/village level;
  iii) establishment of facilities for storage of food products/horticulture products: particularly cold chains;
  iv) handloom, handicrafts and other artisanal products: particularly design improvement, technology-transfer and marketing;
  v) ventures in poultry, sheep-breeding and production, collection, storage and marketing of milk: aimed at import substitution;
  vi) setting up of computer literacy/training institutes in villages/habitations particularly with a population of less than 3000 souls;
  vii) setting up of Fair Price Shops at small habitations across the State;
  viii) Health services unit/dental care units set up by doctors;
  ix) Pathological labs including diagnostic facilities set up by doctors/trained professionals;
  x) Services industry units engaged in maintenance ,repairing, testing of both electrical and electronic equipments/ instruments, services of all types of vehicles and machinery including TV’s, Radio’s, transformers, motors, etc set up by technically qualified persons such as Engineers or trained entrepreneurs;
  xi) Servicing and supply of components/parts of agricultural farm equipments/machinery items such as tractors, pumps, boring machines ,etc, set up by Engineers or technically trained entrepreneurs.
  xii) Tailoring and boutique units set up by educated and trained entrepreneurs;
  xiii) Tourism-related enterprises covering houseboat owners, setting up of Paying Guest facilities, small dhabas and restaurants with a capacity of 20 seats.
  xiv) All the above activities as approved by JKEDI or any other economically viable activity as may be approved by JKEDI;
   

• Priority Sector Advance.

• The following shall be eligible under the Scheme:-
  
  (a) A state subject in the age group of 18 to 37 years having a qualification of 10+2 or above who is unemployed;
  (b) There will be no income ceiling for coverage under the scheme;
  (c) The beneficiaries must be registered with the concerned District Employment and Counseling Centre. They can also be registered with other departments and institutions like DICs etc. wherever required so as to take advantage of the benefits which may accrue through such registrations. The JKEDI shall facilitate this during the course of training under Entrepreneurship Development Programme;
  (d) Any person or any, existing units and the units which have already availed of any incentive or subsidy under any scheme of the Government of India or the State Government shall not be eligible for assistance under the scheme;
  (e) No institution, corporate body, society or an NGO shall be eligible for assistance under the scheme.
   

• a)SEED CAPITAL:
  Seed Capital for different categories of borrowers shall be as under:
  I). Individuals
  Under Graduates/Graduates: 35% of the project cost subject to a maximum of 3 lacs.
  Post Graduates: 35% of the project cost subject to a maximum of 5 lacs.
  Technically Qualified persons*: 35% of the project cost subject to a maximum of 7.5 lacs.
  In Individual Cases where costlier technologies are involved, the upper limit shall be 10.00 lacs**.
  
  II). Groups
  35% of the project cost subject to a maximum of 10 lacs.
  * Technically Qualified Persons shall include Engineers, Doctors, Computer Science& Technology Graduates, MBAs, etc.
  ** The Screening Committee shall decide as to which case falls in this category.
• Bank Loan:
  65% of the project Cost .In cases where the bank finance is secured by CGTMSE Cover, the maximum ceiling on Bank Finance shall be 25 lacs. However, if the loan amount is secured by collateral security of immovable property, there shall be no ceiling on the amount of Bank finance.
• c) Borrowers Contribution:
  Normally, the borrower shall not be required to contribute any margin money. However, in cases, where the project outlay exceeds the Seed Capital requirement and the Bank Loan, the entrepreneur/s shall induct the deficit amount from his own sources
• d) Interest during moratorium:
  Interest during moratorium shall be capitalized and shall form part of the total project cost.
• e) Project cost comprises of Capital Cost as well as the entire working capital requirement.
   

• Maximum of 2 years.

• Primary Security:
  Hypothecation of assets created out of Bank Finance.
• Collateral Security:
  a. For MSE Units where Bank Finance is up to 25 lacs
  Guarantee cover under Credit Guarantee Scheme of CGFTMSE.
  b. For MSE Units where Bank Finance is above 25 lacs / Units not covered under MSE
  Mortgage of unencumbered immovable property having value not less than 100% of the Loan amount.
  C. For units not covered under MSE
  

Bank Loan upto 5.00 lacs *	Third party guarantee of two Persons with sufficient means
Bank Loan above 5.00 lacs:	Mortgage of unencumbered immovable property having value not less than 100% of Loan amount
*However under Agriculture and allied activities, loans upto 1.00 lacs shall be sanctioned against personal guarantee of the borrower without any collateral / 3rd party guarantee.

• Comprehensive insurance of assets created out of Bank finance with the usual bank Clause.

• Nil

• Disbursement of Bank Loan shall be subject to receipt of full Seed Capital which shall be kept in a linked current account to be opened in the name of the borrower.
• Finance including seed capital and margin, if any, shall be disbursed to borrowers in the manner as phased out in DPR.
• Working Capital component of the Project cost shall be made available as a running facility(Cash Credit).
• Finance for acquiring of Technology /machinery, etc shall be made directly to suppliers of goods.
• Amount earmarked for interest to be released as applicable for servicing of interest during moratorium.

• For purchase of new Scooties, etc. (Any make or model). The product shall be primarily targeted at girl students and working ladies.

• Term Loan

• a) Working ladies with regular & adequate source of income to repay the monthly installments. These shall include regular employees of Government/ Semi-Government Undertakings, Autonomous bodies, Public Sector Undertakings, Private Companies or Reputed Establishments, Professionals or self employed individuals & Businesswomen.
  b) Girls/ladies who are either still studying/ don’t have regular or documented source of income/ do not belong to (a). Finance shall be provided in their name with parent/ Guardian /Spouse as co-borrower.
  c) The borrower should be an Indian citizen.
  d) Borrower/s should have attained the age of 18 years. However, in case the applicant is below 18 years of age but above 16 years, finance can be provided with parent/Guardian as co-borrower provided the scooty to be purchased is not more than 50cc(As allowed under Motor Vehicle Act,1989) and possesses valid driving license as allowed under the Act. However, an acknowledgement of debt is to be obtained from the minor on her attaining the age of majority.
  e) Co- borrower should have regular and adequate income to repay the monthly loan installments.
  f) Maximum age of borrower/co-borrower at loan maturity: 58 years or age of retirement, whichever is higher for employees & 65 years for others.
  g) Minimum employment: The applicant must have been in current employment for a period not less than 1 year or must have a business standing of at least 2 years.
  h) The borrower should have valid driving license.
   

• 85% of cost of the Scooty subject to a maximum of 50,000/=. In case the requirement is more than the maximum finance amount, the borrower must bring that amount as additional margin.
• The net monthly home take income/salary of the borrowers after including the installment amount on this loan should not be less than 40% of the gross monthly income/salary. In case of  (Girls/ladies who are either still studying/ don’t have regular or documented source of income/ do not belong to Eligibility (a). Finance shall be provided in their name with parent/ Guardian /Spouse as co-borrower.), the 40% net home take salary principle shall apply to co-borrowers.
   

• 15% of invoice value

• Maximum of 60 months. However, a borrower can opt for any tenure within the maximum ceiling. To reduce the necessity of the borrowers to visit branch for repayment of installments, branches should encourage SIM instructions from the operative accounts of borrower/co borrowers.

• Primary:
  Hypothecation of Scooty.
• Collateral:
  • No third party guarantee required in respect of permanent employees of Government/Semi-Government Undertakings, Autonomous bodies, Public Sector Undertakings drawing salary through our Bank & where letter of undertaking from employer is available. Guarantee of one person shall, however, be required if letter of confirmation from employer is not available.
  • Guarantee of one person required for employees of Private Companies or Reputed Establishments/Institutions & for Professionals or self employed individuals & Businesswomen.
  • Guarantee of co-borrower in case of categories mentioned (Girls/ladies who are either still studying/ don’t have regular or documented source of income/ do not belong to Eligibility (a). Finance shall be provided in their name with parent/ Guardian /Spouse as co-borrower.)
   

• Comprehensive insurance of the vehicle against all types of risks with usual bank clause and policy to be drawn in the joint names of the borrower and the bank

• Prepayment shall be allowed without any pre-payment charges.

• J&K Bank Handicrafts Sustenance Finance (Outside Tripartite Agreement)

• Working Capital Term Loan

• The objective of the product is to enable the Exporters/Traders/Manufacturers (Outside Tripartite Agreement) associated with the industry to overcome the difficulties on account of Global Recession. The finance shall be a one time facility and can be applied for up to September 2009 only. The facility shall be over & above the existing limits, if any, being availed by the borrowers.

• Exporters: Those only involved in overseas exports of handicrafts items.
• Manufacturers: Those involved in manufacturing handicrafts in one or more workshops.
• Traders (National):Those who are not manufacturers but trade across states
• Traders (Local): Those who are not manufacturers but restrict their trading activity within J&K state.
• Retailer (Shop Owners): Those having own retail shops/ Showrooms within India. They can be manufacturers/traders also

• All Handicrafts Exporters, Traders, Retailers and Manufacturers availing Cash Credit facility from our bank.
• The accounts must be running satisfactorily.
• Manufacturers registered with Department of Handicrafts, J&K state and not having any business relationship with us or with any other financial institution shall also be eligible.
   

• For Exporters/ Traders (National):
  To be repaid in 8 Equal Quarterly Installments after a period of 12 Months from the date of initial disbursement. However, the borrowers shall be required to serve the interest during the initial 12 months also.
• For Others:
  The loan amount is to be repaid in 8 Equal Quarterly Installments after a period of 18 Months from the date of initial disbursement.. However, the borrowers shall be required to serve the interest during the initial 18 months also.
   

• Primary Security: Hypothecation of stocks & book debts.
• Collateral: Mortgage of unencumbered immovable property(The condition of providing unencumbered tangible collateral security stands relaxed for all such cases where tangible collateral security already provided in the existing loan facility is of sufficient value to cover the WCTL as well. Accordingly, existing tangible security provided by borrowers for securing existing facilities shall be acceptable as collateral for securing WCTL facility. However, the valuation of the security must be valid and applicable as per the extant guidelines or else fresh valuation should be sought from the prospective borrower) equivalent to:

1.	Exporter	110% of the WCTL (If it falls outside ECGC cover).. 70 %( if it falls under ECGC cover).
2.	Trader (National).	110% of the WCTL.
3.	Trader ( Local)	100% of the WCTL.
4.	Retailer, Show room/Shop owner	100% of the WCTL.
5.	Manufacturers	75% of the WCTL.

However, upto & including 5 lacs, borrowers shall provide collateral security in the form of Third Party Guarantee of two persons only. Mortgage shall be applicable for WCTL above 5 lacs.
 

• The stocks in trade/stocks in transit & the mortgaged property must be comprehensively insured against all risks for its value with the usual bank clause at party’s cost.

• 0.10% of the loan amount subject to a maximum of 1000/-

• Each borrower shall necessarily submit a list of Manufacturers/ Craftsmen/Suppliers/Buyers/Exporters, etc as applicable on quarterly basis which shall be verified by branches through inspections.

• Prepayment of WCTL, entire outstanding amount, shall be allowed. Partial prepayment shall not be allowed.
  
  For Exporters/Traders(National): There shall be an incentive of 0.50% on the amount prepaid if prepayment is within 24 Months from the date of first disbursement & 0.25% on the amount paid if prepayment is within 30 Months from the date of first disbursement.
  For Others: There shall be an incentive of 0.50% on the amount prepaid if prepayment is within 2 years from the date of first disbursement & 0.25% on the amount paid if prepayment is within 3 yrs from the date of first disbursement.
   

•  Exporters furnishing evidence of exports through export orders or related items shall be eligible for availing the finance at concessional rates applicable to exports
• Traders (National): Supply to exporters based on export orders shall be considered as deemed exports and, therefore, eligible for concessional interest rates applicable to exports.
   

• J&K Bank Handicrafts Sustenance Finance (Under  Tripartite Agreement)

• Working Capital Term Loan

• The objective of the product is to enable the Exporters/Traders/Manufacturers (Under Tripartite Agreement) associated with the industry to overcome the difficulties on account of Global Recession. The finance shall be a one time facility and can be applied for up to September 2009 only. The facility shall be over & above the existing limits, if any, being availed by the borrowers.

• Exporters: Those only involved in overseas exports of handicrafts items.
• Manufacturers: Those involved in manufacturing handicrafts in one or more workshops.
• Traders (National):Those who are not manufacturers but trade across states
• Traders (Local): Those who are not manufacturers but restrict their trading activity within J&K state.
• Retailer (Shop Owners): Those having own retail shops/ Showrooms within India. They can be Traders/Manufacturers also
   

• All Handicrafts Exporters, Traders, Retailers and Manufacturers availing Cash Credit facility from our bank.
• The accounts must be running satisfactorily.
• Manufacturers registered with Department of Handicrafts, J&K state and not having any business relationship with us or with any other financial institution shall also be eligible.
  
   

• The loan amount is to be repaid in 8 Equal Quarterly Installments after a period of 18 Months from the date of initial disbursement. However, the borrowers shall be required to serve the interest during the initial 18 months also.

• Primary Security: Hypothecation of stocks & book debts.
• Collateral: Mortgage of unencumbered immovable property(The condition of providing unencumbered tangible collateral security stands relaxed for all such cases where tangible collateral security already provided in the existing loan facility is of sufficient value to cover the WCTL as well. Accordingly, existing tangible security provided by borrowers for securing existing facilities shall be acceptable as collateral for securing WCTL facility. However, the valuation of the security must be valid and applicable as per the extant guidelines or else fresh valuation should be sought from the prospective borrower) equivalent to:

1.	Exporter(including deemed exports)	110% of the WCTL( if it falls outside ECGC Cover). 70% ( if it falls under ECGC Cover)
2.	Trader (National).	110% of the WCTL.
3.	Trader ( Local)	100% of the WCTL.
4.	Retailer, Show room/Shop owner	100% of the WCTL.
5.	Manufacturers	75% of the WCTL.

However, upto & including 5 lacs, borrowers shall provide collateral security in the form of Third Party Guarantee of two persons only. Mortgage shall be applicable for WCTL above 5 lacs. 
 

• The stocks in trade/stocks in transit & the mortgaged property must be comprehensively insured against all risks for its value with the usual bank clause at party’s cost.

• Prepayment of WCTL, entire outstanding amount, shall be allowed. Partial prepayment shall not be allowed. There shall be an incentive of 0.50% on the amount prepaid if prepayment is within 2 years from the date of first disbursement & 0.25% on the amount paid if prepayment is within 3 yrs from the date of first disbursement.

• 0.10% of the loan amount subject to a maximum of 1000/-

• To provide adequate and timely credit for comprehensive requirements of Artisans & Craftsmen, etc. The facility, however, shall be provided to those Craftsmen only who are part of the trilateral agreement between the Bank, Exporters/Traders/Manufacturers and the Craftsmen.

• All Artisans, Craftsmen and other people aged 18 to 60 years, associated with below-mentioned activities:
  
  • Carpet Weaving
  • Shawl Embroidery
  • Kani Shawl Weaving.
  • Chain Stitch
  • Crewel Embroidery
  • Wood Carving
  • Paper Machie

• Comprehensive insurance of hypothecated assets.

• Upfront Guarantee fee 1.00%, Annual Service Fee 0.50%. The upfront and service fee shall be borne by Ministry of Textiles, Government of India in case of craftsmen having Artisan Card of Dir. Handicrafts, J&K State. However, craftsmen who don’t possess Artisan Card shall have to bear both the fee themselves.

1. To enhance the productivity of local sheep in terms of wool and mutton production, by crossing them with superior quality breeding rams.
2. To ensure elimination of sheep with pigmentation, coarse wool and such other undesirable characters through selective breeding and rigorous culling.
3. To improve the economic condition of sheep breeders by increasing the productivity of their sheep, providing them subsidized inputs and remunerative prices for their produce.
4. To provide increased opportunities of livelihood to small/marginal farmers, agricultural labourers, entrepreneurs, unemployed youth etc.
    

• 50 Crossbred Ewes

• 15% of unit cost.

• Term loan component of 17,200/- plus margin amount of 37800/- from the borrower shall be utilized for construction of low cost shelter and procurement of equipment as per technical specification provided by Directorate of sheep Husbandry.
• The cost of live stock i.e. 1,50,000/- .shall be remitted out of the Term Loan component directly in favour of the supplier of live stock., after ensuring proper end use of funds released for shelter and equipment.
• Grazing, feeding & Vet. Healthcare charges of 32, 800/- per unit shall be released to the borrower in four equal quarterly installments of 8, 200/- each. 1st installment shall be disbursed immediately after procurement of live stock.

• 6 years including Moratorium of one and a half year from 1st Disbursement.

• The Term loan facility of 2.00 lacs shall be repaid in 10 equal half yearly installment of 20, 000/- each starting after 18 months from 1st disbursement.

1.  Hypothecation of live stock, and other assets created.
2.  3rd party guarantee of two persons, having sufficient means to withstand the liability.

• Borrowers under the scheme shall be identified & sponsored by Concerned District Sheep Husbandry Officer.

1.  The Department shall provide two good quality rams free of cost to each unit for breeding coverage.
2. The department shall provide round the year free veterinary healthcare /aid to each Mini sheep Farm. The medicines required for the purpose and available with the Deptt. Shall be provided to the unit at subsidized rates

• Nil

• Provide hassle free and timely finance for purchase of construction equipments including Backhoe loaders, Excavators, wheel loaders, Compactors, Cranes , Skid Steers , Telehandlers etc
   

• Individuals/Firms/Companies engaged in construction activities.

• 75% of the Invoice Value subject to maximum of 100.00 lakhs per borrower for financing of more than one number of construction equipment.

• Term Loan

• Minimum 25 % of Invoice Value.

• 3 months from the date of first disbursement.

• Term loan shall be paid in 60 Equated Monthly Installments (EMIs) after moratorium period of 3 months from the date of disbursement.

• Primary
  Hypothecation of construction equipment to be purchased
• Collateral
  a. Upto 25.00 lakhs
  To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed or against 3rd party guarantee of 2 persons of sound means based on the option exercised by the borrower.
  b. Above 25.00 lakhs
  Mortgage of immovable property of value equal to or at least 50% of the loan amount.

• Prepayment may be allowed without any prepayment charges.

•  0.50% of the loan amount subject to a maximum of 25000/-

• The equipment financed shall be insured with comprehensive insurance cover and usual bank clause at the costs and expenses of the borrower. The insurance policy shall be renewed at yearly intervals till final adjustment of the loan.

• For purchase & installation of Off-Grid Solar Photo –Voltaic systems (Lighting) from eligible suppliers
   
• Loan facility shall be available for purchase of any one of the photo-voltaic models indicated in Annexure-I.
   

• Priority Sector

• a) Domestic Users
  
  Confirmed Employees of: Government/Semi-Government Undertakings, Autonomous bodies &Public Sector Undertakings.
  
  Permanent employees of Private Companies or Reputed Establishments with minimum 2 years association with the current employer.
  
  Professionals or self employed individuals / Businessmen with minimum standing of 2 years.
  
  b) Industrial/Commercial Users:
  
  Industries, Reputed Establishments, Partnership Firms, Hotels, restaurants etc with minimum standing of 2 years and maintaining business accounts with the Bank.
  
  c) Rural Households having adequate income from farm & non-farm activities.
  
  d) The unit could be located both in Urban and rural areas.
  
  e) Only pre-approved models (Annexure-I) shall be financed.
   

• Individuals:
  
  12 times net monthly salary/income subject to the maximum for the concerned model as indicated in Annexure-I
  
  Institutional users and Industrial/Commercial Users:
  Average Annual Cash Accrual (i.e. PAT+Dep.) as per last 2 years financials subject to a maximum for the concerned model as indicated in Annexure-I.
  
  Rural Households:
  Maximum of 2 times net annual income as certified as certified by concerned Sarpanch.
   

• Maximum of 5 years in EMI’s with no moratorium period. There shall be a minimum lock- in period of 3 years, i.e. full adjustment of loan before completion of 3 years shall not be allowed

• Minimum 25 % of Invoice Value.

• Primary
  Hypothecation of photovoltaic assets installed.
  
  Collateral
  No third party guarantee required in respect of permanent employees of Government/Semi-Government Undertakings, Autonomous bodies, Public Sector Undertakings drawing salary through our Bank & where letter of confirmation from employer for deduction of monthly installments is available. Letter of confirmation shall not be required for loans upto Rs 15,000.
  
  For Others:
  Third Party Guarantee of one person

• The refinance availed as per the eligibility by the banks will be repayable in suitable installments not exceeding 5 years.