Mahabank Scheme for Contractors

Details of Mahabank Scheme for Contractors
ParameterDetails

Eligibility

  • Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors, Electrical Contractors, Road Contractors, Irrigation Contractors, Pipeline Contractors etc established as Proprietorship / Partnership firms / Limited Companies
  • Individuals, Proprietorship, Partnership Firm and limited companies eligible to be classified as MSME under the MSMED Act, 2006 with Credit Rating
    (Internal/External as applicable) of BBB and above
  • MSME Units engaged in the business line at least for the last 3 years
  • Having Audited Financial Statements for last 3 years
  • Profit making for last 3 years
  • CIBIL Score as under
    • For Individuals viz., partners and proprietor 700 and above
    • For Commercial Report CIBIL MSME Rank (CMR) CMR 1 to CMR 5

Purpose

  1. Cash Credit, FLC/ILC & BG facility for meeting working capital requirement
  2. Term Loan for purchase of equipment/machinery/vehicle.

Nature of Facility

Fund Based: Term Loan & Cash Credit

Non Fund based:: FLC/ILC, Bank Guarantee, Deferred Payment Guarantee

Quantum of
Finance

Minimum Rs.10 Lakhs Maximum Rs. 10.00 Crore

Margin

  • Micro & Small Enterprises: Minimum 20% upfront
  • Medium Enterprise: Minimum 25% upfront

Rate of
Interest

RLLR based 

  • Incentive by way of ROI reduction if collateral is provided.
  • CGTMSE cover available for loan upto Rs. 5 crore.

Fees & Charges

As per extant service charges guidelines

Frequently Asked Questions

1. What is the Mahabank Scheme for Contractors?

The Mahabank Scheme for Contractors is a loan scheme offered by the Bank of Maharashtra to provide financial assistance to contractors for their business needs. The scheme offers working capital facilities such as Cash Credit, Bank Guarantees, and Letter of Credit, as well as Term Loans for purchasing machinery, vehicles, or equipment required for contract work.

2. Who is eligible to apply for the Mahabank Scheme for Contractors?

The scheme is available to contractors such as civil, mining, engineering, electrical, transport, irrigation, pipeline, and road contractors. Eligible applicants include proprietorship firms, partnership firms, and limited companies classified as MSMEs under the MSMED Act with at least three years of business operations and satisfactory credit ratings.

3. What is the minimum and maximum loan amount available under this scheme?

Under the Mahabank Scheme for Contractors, borrowers can avail finance starting from ₹10 lakh up to ₹10 crore, depending on the nature of the project, financial capacity, and bank’s credit assessment.

4. What is the purpose of the loan under the Mahabank Scheme for Contractors?

The loan can be used for multiple business purposes, including meeting working capital requirements, obtaining bank guarantees or letters of credit for contract execution, and purchasing equipment, machinery, or vehicles required for contract projects.

5. What types of loan facilities are offered under this scheme?

The scheme offers both fund-based and non-fund-based facilities. Fund-based facilities include Term Loans and Cash Credit, while non-fund-based facilities include Bank Guarantees and Letters of Credit to support contractors in executing projects.

6. What is the margin requirement for the Mahabank Scheme for Contractors?

The margin requirement depends on the size of the enterprise. Micro and Small Enterprises generally require a minimum margin of 20%, while Medium Enterprises may need a minimum margin of 25% of the project cost.

7. Is collateral required for the Mahabank Scheme for Contractors?

Collateral requirements depend on the loan amount and credit profile. In some cases, loans may be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for amounts up to ₹5 crore, which can help eligible borrowers access credit without additional collateral.

8. What is the interest rate for the Mahabank Scheme for Contractors?

The interest rate under the scheme is linked to the Repo Linked Lending Rate (RLLR) of the Bank of Maharashtra. Borrowers may also receive interest rate concessions depending on collateral availability and credit profile.