Genset Finance
to tide over the present power crisis
Learn more about our Loan to purchase new Generator.
To tide over the present power crisis & the increasing need to fund alternate energy installation needs of our business, we are herewith offering a exclusively tailored loan product to fund your purchase of a Genset at attractive rates of interest & low processing charges.
- Purpose
- To purchase new Generator only.
- Eligibility
- Individuals, Proprietorship, Partnership, Company, Trust, Society, etc., already engaged in the activity (Traders / Manufacturers / Service). New activity - Not eligible under this scheme. If the applicant is already having generators, based on the requirement, additional generator under this scheme can also be financed. New borrowers already engaged in the activity (Traders / Manufacturers / Service) are also eligible subject to obtention of Satisfactory Credit Opinion from their existing bankers. If, they are enjoying credit limits with other banks, Satisfactory Credit Opinion and NOC should be obtained from their existing bankers.
- Form of Advance
- Term Loan.
- Primary Security
- Hypothecation of Generator & Other Accessories Financed.
- Collateral Security
- Need not be insisted. Existing securities and guarantees if any, offered for the existing credit facilities should be extended for this loan.
- Loan Quantum
- Up to Rs. 25 Lakhs.
- Insurance
- Generator & other accessories should be insured for full value with our Bank Clause to cover all risks.
- Margin
- 25% of Generator + erection & electrical installation charges.
- Repayment
- Up to a maximum period of 5 years.
- Rate of Interest
- BR + 4.00% (15.00% p.a.) (Irrespective of Rating).
- Current Base Rate for Lending (BR) is 11.00% p.a.
- Penal Interest
- Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
- Processing Charges
- 1.00% of Limit sanctioned without any maximum cap.
- Prepayment Charges
- At the rate of 1.00% of term loan amount prepaid. In case, where the term loan is closed by way of take over by other banks alone will attract prepayment charges. However, no prepayment charges will be levied in case, where term loan is closed by the borrower from own source of funds.
- Documentation
- Simple Documentation as per Bank Norms.
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.
