Purpose:
The finance under this scheme shall be available for purchase of any equipment/ machinery working on construction/ civil contracts like loaders, excavators, cranes etc.
The models/ makes of machine to be financed should be of standard make and must conform to ISI/ BIS test standards.
Eligibility:
- (i) Any Individual/ Proprietorship firm/ Partnership Firm/ Company with a minimum two years of business experience.
- (ii) Applicants using equipment for self purpose, mine owners and contractors.
- (iii) The borrower should have sufficient net worth to pay for the margin and initial recurring expenses. The intending borrower must possess sufficient assets to pay the bank loan out of other sources in case of any unseen set back to the business for which the finance is made.
- (iv) The applicant should have sufficient work orders at hand to justify the viability of the unit and must have a satisfactory past record.
- (v) The borrower should be a permanent resident of J&K State.
- (vi) Age of the applicant should be between 18 to 60 years.
- (vii) The intending borrower should have sufficient knowledge and experience in the line and must engage an experienced/ skilled operator to operate the machine/ equipment.
Quantum of Loan:
Max 75% of the unit cost.
Margin:
Atleast 25% of the unit cost i.e. 25% of the cost of machine as per invoice value.
Security:
i) Primary: Hypothecation of Machine to be financed by the Bank. Banks lien/ name to be noted in the books of the RTO and also in the Registration Certificate (wherever applicable).
ii) Collateral:
Up to Rs.20.00 Lacs
3rd party guarantee of two persons of sound financial net means and acceptable to the bank
Above Rs.20.00 to Rs.40.00 Lacs
i. 3rd party guarantee of 2 persons of sound financial net means and acceptable to the bank.
ii. Mortgage of immoveable property at least equivalent to 50% of the loan amount.
Above Rs.40.00 Lacs
i. 3rd party guarantee of 2 persons of sound financial net means and acceptable to the bank.
ii. Mortgage of immoveable property at least equivalent to the loan amount.
Repayment Period:
Maximum repayment period of 60 months including an initial moratorium period of 2 months. The repayment of loan along with interest shall be in 58 Equal Monthly Installments. However, insurance and other costs shall be borne/ paid by the borrower separately.
Processing Charges:
0.50%
* Conditions Apply