SBI for SME offers term loan for purchasing new equipment used in construction activity like loaders, excavators, cranes, vehicles etc. SBI SME Construction Equipment Loan scheme allows 4 years tenure and 6 months moratorium.
Features of SBI SME Construction Equipment Loan
- Product for existing Construction Equipment owners, mine owners, contractors, builders, port operators along with other captive business owners.
- Base rate plus 100 to 200 bps.
- Pre-approved line of credit for 12 months.
- The premium of General Insurance for the first year will be financed under the scheme and can be repaid along with the regular repayment schedule.
Loan Amount of SBI SME Construction Equipment Loan
- Minimum loan amount: Rs. 25 lakhs
- Maximum loan amount: No Cap
Eligibility for SBI SME Construction Equipment Loan
- Minimum 3 years experience in construction business.
- Ownership of minimum 5 Construction Equipment (Not Applicable for captive users).
- Minimum loan requirement amount Rs. 25 lakhs.
- Satisfactory track record with existing banks / Financial Institution for the last one year.
- Income Tax Assessee (personal & Business).
- Borrower has to get minimum eligible score under Pricing Matrix (40%) to be eligible for SBI Construction Equipment Loan Scheme.
Other Details of SBI SME Construction Equipment Loan
- Facility: Term Loan / pre-approved line of credit for 12 months, Dropline Overdraft facility.
- Interest Rate: 100 bps to 200 bps over Base Rate. Interest Rate linked to scores under the Pricing Matrix.
- Processing fee: Minnimum Rs. 25,000 per equipment, subject to maximum Rs. 3 lakhs. In case of pre-approved line of credit, service fee to be charged based on disbursement made for purchasing equipment.
- Repayment: Repayment upto maximum 4 years. Repayment in EMI basis. Customized repayment is possible depending on cash accruals.
- Pre-Payment Penalty:
- For Individuals: NIL
- For Others: 2 years, 4% of the outstanding amount; Beyond 2 years, 2% of the outstanding amount.
- Collateral Security: Minimum 25% collateral.
- Special feature:
- Pre-approved line of credit may be sanctioned to the customers for 12 months based on the projected purchase / deployment schedule of Construction Equipment and based on project / contract agreement disbursement can be made.
- The premium of General Insurance for the first year will be financed under the scheme and can be repaid along with the regular repayment schedule.Pricing is not linked to CRA but linked to pricing matrix.
- In case of satisfactory repayment (payment of instalment within 3 day from due date), after end of every year, 10 bps concession will be provided on the annualised interest rate till liquidation. In case repayment is not satisfactory during any year, no concession will be provided next year and same interest rate will continue to be charged for the entire tenor and no further concession will be provided.