GOVERNMENT OF INDIA
MICRO, SMALL AND MEDIUM ENTERPRISES
SCHEME FOR FINANCING MSME SERVICE UNITS
SECURITY FOR MSME LOAN
PRIMARY Mortgage/Hypothecation/pledge/assignment etc. of assets (land/building/P&M/ stocks/book debts (not older than 3 months) created out of the loan.
COLLATERAL In respect of MSME advances, where collateral security/3rd party guarantee norms have been categorically mentioned the security norms under that specific scheme to be followed. In other cases, the collateral security will be taken as per the following tableiii) For the list of activities under
Situation 1: Where land &/or building has been financed and mortgaged as primary security
Extent of Collateral security: No additional collateral security is required, in case where land and/or building of factory is financed by us and land and building is mortgaged as primary security having realizable value of atleast equivalent to 133% of total exposure. If there is any shortfall, additional collateral in the shape of Liquid security/IP will be taken.
Power of Relaxations:-Circle Heads (AGM & above)/LCBs (headed by DGM) may relax the above requirement upto 125% and FGM may relax upto 100% of total exposure.
Situation 2: Where Bank is not financing Land &/or Building and either only WC is sanctioned and/or TL is sanctioned for Plant & machinery only and land and/or building is not mortgaged with the Bank as in 1 above.
Extent of Collateral security: In respect of such advances collateral security by way of mortgage of immovable properties or 3rd party guarantee may be asked for in those cases, where sanctioning authority feels that the primary security would be inadequate to safeguard Bank’s interest or for other valid reasons so that Bank’s interest is protected and not as a matter of routine.
service sector, various notifications from Ministry of MSME, GOI may be referred.
For more details click here
MICRO, SMALL AND MEDIUM ENTERPRISES
SCHEME FOR FINANCING MSME SERVICE UNITS
SECURITY FOR MSME LOAN
PRIMARY Mortgage/Hypothecation/pledge/assignment etc. of assets (land/building/P&M/ stocks/book debts (not older than 3 months) created out of the loan.
COLLATERAL In respect of MSME advances, where collateral security/3rd party guarantee norms have been categorically mentioned the security norms under that specific scheme to be followed. In other cases, the collateral security will be taken as per the following tableiii) For the list of activities under
Situation 1: Where land &/or building has been financed and mortgaged as primary security
Extent of Collateral security: No additional collateral security is required, in case where land and/or building of factory is financed by us and land and building is mortgaged as primary security having realizable value of atleast equivalent to 133% of total exposure. If there is any shortfall, additional collateral in the shape of Liquid security/IP will be taken.
Power of Relaxations:-Circle Heads (AGM & above)/LCBs (headed by DGM) may relax the above requirement upto 125% and FGM may relax upto 100% of total exposure.
Situation 2: Where Bank is not financing Land &/or Building and either only WC is sanctioned and/or TL is sanctioned for Plant & machinery only and land and/or building is not mortgaged with the Bank as in 1 above.
Extent of Collateral security: In respect of such advances collateral security by way of mortgage of immovable properties or 3rd party guarantee may be asked for in those cases, where sanctioning authority feels that the primary security would be inadequate to safeguard Bank’s interest or for other valid reasons so that Bank’s interest is protected and not as a matter of routine.
service sector, various notifications from Ministry of MSME, GOI may be referred.
For more details click here