The Hindu Business Line : TMB launches credit scheme for SMEs

Under this scheme, an individual can get a maximum loan of Rs 2 crore and group borrowers up to Rs 10 crore. The quantum of working capital limits will be fixed on the basis of minimum of 20 per cent of the unit's projected annual turnover for new and existing units. Increase in projected turnover should normally not exceed 25 per cent of the actual turnover in the preceding year.

A prudent decision will be taken based on capacity expansion, increased capacity utilisation, pricing of inventory, etc.

Repayment of the term loans will be on the basis of profitability projection for entire payback period and the average DSCR of the project.

The period of working capital limit will be one year and term loan will be for a maximum of seven years, exclusive of instalment holiday.

The bank charges 10 per cent interest rate for credit up to Rs 2 lakh and 11 per cent for amounts above Rs 2 lakh but below Rs 20 lakh. For loans of Rs 20 lakh and above, it charges as per credit rating exercise with a minimum rate of 10.50 per cent.

Concession of 0.50 per cent will be given to SMEs rated by SME Rating Agency of India Ltd (SMERA) for advances above Rs 1 crore.

For speedy and timely credit dispensation to SMEs, the branch managers of TMB have been entrusted with higher discretionary powers for sanction of loans under the new scheme.

The bank plans to increase the exposure to SMEs from Rs 594.22 crore last year to Rs 1,190 crore during the current year, a release said.

More Stories on : Private Banks | SSI | Credit Market

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee is stable in terms of real effective exchange rate: Chidambaram

Rupee touches 47-mark

Chamber plea on RTGS

IDBI net up 39 pc on increase in revenues

Private non-life cos ceding to global reinsurers

High levels of derivative exposure

TMB launches credit scheme for SMEs

HSBC joins CASHNET

Bonds up on possible auction delay

Call rates unchanged

StanChart's new credit card offers 5% cash-back

YES Bank, Reuters tie-up

Nageshwara Rao to head IDBI's insurance venture