Scheme for Financing NBFC-MFIs

Guidelines
Most Important Terms & Conditions (MITC)

Scheme for Financing NBFC-MFIs : Guidelines

Particulars

Guidelines under the scheme

Purpose

A scheme for on-lending to individuals/groups, which is eligible for categorization as priority sector advance under respective categories viz. Agriculture, Micro, Small and Medium Enterprises and others, subject to their compliance with the laid down criteria, as per RBI guidelines.

Nature of Facility

Demand Loan
Term Loan

Rate of Interest

Parameters	Advances to NBFC-MFIs which are engaged in on-lending to individuals /groups under Priority Sector.
Loans upto Rs 3.00 Lakhs	One year MCLR+SP+0.50%
Limit above Rs 3.00 Lakhs and less than Rs 25.00 Lakhs	One year MCLR+SP+1.50%
Limit of Rs 25.00 Lakhs and above
Internal Credit Rating
CR-1	One year MCLR+SP+1.40%
CR-2	One year MCLR+SP+1.65%
CR-3	One year MCLR+SP+1.90%
CR-4	One year MCLR+SP+2.40%
CR-5	One year MCLR+SP+3.40%
CR-6 & Below	One year MCLR+SP+5.40%

Margin

10% on book debts, created out of the funds borrowed from the bank.

Security

Primary Security:
Exclusive charge over the loan assets or book debts funded out of the bank loan i.e. assignment of book debt created out of the funds borrowed from the Bank.

Collateral:
Cash Collateral of minimum 10% of the sanctioned limit in the form of Term Deposit to be kept for the tenure of the loan. Lien to be marked on the said FDR in favour of our bank for the principal amount along with the interest credited thereon in the account. Personal Guarantee of main promoter/directors of the company. However, the personal Guarantee of the promoters/directors of the company need not be insisted upon.