Yuva Sashakt
| Sl. No. | Particulars | Proposed Guidelines |
|---|---|---|
| 1 | Purpose | To provide credit facility for business requirements of MSMEs to purchase/acquire equipment related to their business activity. |
| 2 | Eligibility | Non-salaried Individual and Proprietorship Firm including Gig Workers, Freelancers and Self-Employed persons. |
| 3 | Age | Entry Age Minimum: 18 Years Maximum: 29 Years |
| 4 | Loan Quantum | Term Loan Minimum: ₹25,000 Maximum: ₹2,00,000 Loan quantum to be 5 times of the average monthly eligible income or ₹2,00,000 or amount of loan requested, whichever is lower. |
| 5 | Consumer CIBIL Score/CMR |
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| 6 | Margin | Nil |
| 7 | Earning History | Minimum 6 months of earning history with a continuous or reasonably stable earning trail. |
| 8 | Monthly Income | Minimum monthly average net income should be ₹15,000. |
| 9 | Income Assessment | The proposed six-month average income assessment is considered appropriate for smoothing daily, weekly and seasonal variations. Following parameters will be analyzed to decide the annual income of the customer: a) Individuals maintaining SB/CA/CC account in the name of the firm or in individual name but not linked to UPI/POS, 8% of annual credit summation will be taken as annual income (Average for last 12 months. 6 months income to be annualized). b) Individuals with UPI/POS linked to SB/CA/CC account in the name of the firm or in individual name through which the business transactions are routed, 20% of total credit summation of digital transactions will be taken as Annual income (Average for last 12 months. 6 months income to be annualised). One-off credits, which are not regular in nature and non-indicative of income from business, may be removed from credit summation. Thus, the statement of the account, where the business transactions or professional fees are being credited will be analyzed to ascertain the nature of transaction and assessing annual income as stated above. |
| 10 | FOIR (Fixed Obligation to Income Ratio) | [(Existing EMI + Proposed EMI) / Monthly Net Income] × 100, Maximum 40%, including the proposed EMI. |
| 11 | Repayment Term | Term Loan repayable from 12 to 48 Months (maximum) including moratorium period of 3 Months (maximum). |
| 12 | Security Coverage | Primary Charge by way of hypothecation on assets created/purchased out of Bank Finance. Security Coverage
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| 13 | Rate of Interest | EBLR + 2.50% i.e. UCO Float Rate + 2.50% with a cap of maximum 8.50% p.a. |
| 14 | Upfront Fee / Documentation Charges / Review Charge / Pre-payment Charges / Any Other Charges | Nil |
| 15 | Insurance | As per extant Credit Risk Management Policy of Bank in vogue. Personal accident insurance cover under PMSBY to be offered at customer's cost. |
| 16 | Documentation |
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