Parameter

Scheme Description

Eligibility Entities

MSME units constituted as Individuals, Proprietorship Firm, Partnership Firm, Private Limited Company, Public Limited Company, LLP, One Person Company.

Purpose

To meet the working capital requirements of vendors engaged in solar panel vending registered with MNRE.

Eligibility Criteria

1. MSME units should be registered with MNRE/DISCOM.
2. Solar vendors should have valid Udyam Registration Certificate (URC) and GST Registration.
3. The registered Solar Vendor/ Channel Partner/ Sub- Contractor should have vintage of at least 6 months of registration and should have handled at least 10 projects in the preceding 6 months period.

Type of Facility

Working Capital (fund based/non-fund based).

Fund Based: Cash Credit/ Export Credit in form of Pre-shipment & Post-shipment facility.

Non-Fund based: Foreign LC / Inland LC, Bank guarantee.

Quantum of Finance

• Minimum: Above Rs. 10 lacs
• Maximum: Rs. 5 Crore

Margin

• Stock: 25%
• Book Debt (up to 120 days): 25%

Rate of Interest

Concessional rate linked with Internal Risk Rating and CMR.

CGTMSE

CGTMSE cover available for loan amount of upto Rs. 5 Crores.

Security

Primary: Hypothecation of assets created out of bank finance.

Collateral Security:

• All loans under the scheme shall be covered under CGTMSE Guarantee cover. No further security shall be insisted upon. CGTMSE guarantee coverage to be obtained before disbursement.
• However, if borrower insists on providing collateral security in place of CGTMSE, then Bank’s collateral policy will be followed.