ASSET BACKED LOAN- COMMERCIAL REAL ESTATE

LOAN FOR COMMERCIAL REAL ESTATE- COMMERCIAL PROJECTS

Parameters Features
Nature of Facility Dropline Overdraft. Both FB & NFB Facility
(LTV- Immovable property : 50% of the realizable value)
Purpose
  • Creation/acquisition of real estate such as office buildings, retail space, industrial or warehouse space, multiplex, hotels, restaurants, gymnasium, amusement parks, cold storage etc. where the prospect for repayment would generally be lease or rental payment or sale of asset.
  • For both working capital (including pre-operative expenses) and fixed asset.
Target Group Proprietorship/Partnership/Company
Eligibility Criteria
  • Existing Customer already availing credit facilities from us.
  • New units with marketable assets to offer as security
  • Takeover of existing units from other Bank/FIs permitted with satisfactory track record (Credit information report to be obtained).
Quantum of loan (Min/Max)
  • Minimum loan amount: > Rs 10 lacs
  • Maximum loan amount:
    - Tier-I Branch: Rs 50 Crores
    - Tier-II, III Branch: Rs 20 Crores
Margin (%) 25% both for working capital and fixed assets.
Pricing Competitive Interest Rate Linked to MCLR
Collateral Security Immovable property in the form of Equitable/ Registered Mortgage of land and building, by way of first charge.
  • Industrial property both leased & freehold / land/plot cannot be taken as security for ABLCRE-CP
  • Leasehold property can be taken subject to the conditions mentioned above under the head “Eligible Security”.
  • No Second Charge or Pari-Passu charge will be extended for other
  • Bank/FI.
Repayment Period Drop-line Overdraft: Limits can be sanctioned for period of 12 months to 72 months, including moratorium period, with either Equated Reduction in limit or customized reduction in limit depending upon the cash accruals as per projections.
  • Interest to be serviced monthly during the period of moratorium also.
  • Drawing power shall be reduced so as to have the overdraft liquidated at the end of the period.
Processing Fee/Upfront Fee 1% of the limits (Upper Cap: Rs.10 Lacs)
Other Conditions
  • Cash Flow statement for Builder Finance on Quarterly basis in the month May/Aug/Nov/Feb.
  • Drawing power is not linked to quarterly cash flow statement. However, cash flow statement is must to confirm the level of activity/status of the project/end use of the funds