Loan Against Machinery (PMEGP) Scheme

Eligibility of borrower:

  • Having current account holder of the Bank.
  • Borrower / partners / directors must be a member of the bank.
  • Any individual, above 18 years of age
  • For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
  • Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
  • For new project only and Project cost Up to Rs. 25 Lacs – for manufacturing sector & Up to Rs. 10 Lacs – for Business / Service sector.
  • As per rules of PMEGP Scheme.

 Purpose of Loan:

  • Purchase of machinery for their own business.

Quantum of Finance:

  • For General category - Up to 90% of the cost of machinery.
  • For Special (ladies) category - Up to 95% of the cost of machinery.

Share Linkage:

  • Borrower must have Bank's share linkage @ 1% of the loan sanction amount.

Features:

  • Loan tenure up to 84 months.
  • Nominal Processing Charge
  • Easy Process
  • 2% loan closure charge of loan outstanding amount will be charged, In case of Loan closed above Rs. 10 Lacs through Bank transfer.
  • Interest is to be charged on reducing balance method.
  • Two Guarantors, out of one must be a non-relative guarantor.

Prime Security:

  • Hypothecation of machinery.

Collateral Security:

  • Mortgage of property.