46 XX | Enlightener Series | C. Private Sector Schemes

Disclaimer…before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.

About this scheme..

TMB MSME Credit Scheme, a semi-secured loan offering at liberalized terms by Tamilnad Mercantile Bank (TMB) is estimated to have been launched sometime in 2019 to meet capital requirement of Micro, Small & Medium Enterprises (MSMEs).

How is it being implemented?

Under this Scheme, direct financial assistance in the form of loans is given to,

MSMEs

What’s on offer?

I. Product

Fund based limits (Term Loan, Working Capital Demand Loan (WCDL)) & Non-fund based limits (Cash Credit (CC), Overdraft (OD))
Ticket Size
- Single Borrower: ₹25 Crores
- Group Borrowers: ₹50 Crores

II. Purpose:

Investment in or acquisition of fixed assets
Working capital requirements

III. Borrower Type:

Individuals, Sole Proprietorship, Partnership Firm, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company, Hindu Undivided Family (HUF)

IV. Security or Collateral or Guarantee or Insurance

Security
- Term Loan: Primary charge on assets acquired or created out of Bank’s finance
- Working Capital Limits: Stocks & Receivables
Collateral
- Loans upto ₹10 Lakhs: Nil as covered y Credit Guarantee Scheme (CGS) of CGTMSE or under Credit Guarantee Fund for Micro Units (CGFMU) of NCGTC
- Loans upto ₹5 Crores: Nil for loans sanctioned under CGTMSE Scheme
- For others: Tangible & Marketable Collateral Security of at least 50% of the limit sanctioned
Guarantee: Nil
Insurance: For more information around this, please contact TMB via means mentioned below

V. Interest Rate

May range between 10.20% – 13.85%
Please refer to the latest Repo Linked Lending Rate (RLLR) for this Scheme under Rate of Interest on Corporate/Business Loan Products here

VI. Processing Fee

Term Loans or WCDL: 1.00% of the loan amount + GST
CC or OD: 0.50% of the OD Limit + GST
For Renewals: 0.25% of the Limit + GST

VII. Margin Money Requirement

Term Loans or WCDL: 1.00% of the loan amount + GST
CC or OD: 0.50% of the OD Limit + GST
For Renewals: 0.25% of the Limit + GST

VIII. Tenure, Repayments & Pre-Closures

Tenure
- Term Loan: upto 7 years excluding holiday period (moratorium) of 12 months (18 months in case of construction)
- Working Capital Limit: 1 Year (renewable)
Repayments: For more information around this, please contact TMB via means mentioned below
Foreclosure, Penality & Other Charges: For more information around this, Please refer to the Penal Charge Details here

IX. Turnaround Time