Urban Banks Department

Urban Banks
Department

The Bank continues to maintain strong relations with the urban co-operative Banks and in order to nurture these relations further, the Bank has implemented the Consortium Credit Policy and Jaswandi Overdraft Scheme for Urban Co-operative Banks, M.T. Loan for Computerization of Head Office and Branches for Urban Banks, and Loans to UCBs for Construction / Purchase of Head Office and Branches.

Key Schemes & Facilities

Loan Against Gov. Securities (Jaswandi Overdraft Facility on excess SLR securities) for UCBs.
Consortium Finance Scheme with UCBs for their customers (Working Capital & Term Loan).
M.T. Loan for Computerization of Head Office and Branches.
Loans for Construction / Purchase of Head Office and Branches.

Loan Against Gov. Securities (Jaswandi Overdraft Facility on excess SLR securities) For UCBs

Eligibility Criteria

Bank must have achieved A or B audit class in their statutory audit report for the last 3 consecutive years.
Bank should not have any restriction / direction imposed by the RBI.

The maximum overdraft limit against Gov. Securities (excess SLR) depends on the type of security and is based on the face value and market value, whichever is lower:

LIQUID SECURITIES — UP TO 80%
SEMI-ILLIQUID SECURITIES — UP TO 60%
ILLIQUID SECURITIES — UP TO 50%

Loan Period: One year from the first drawal, to be renewed every year.
Processing Charges: No Processing as well as Commitment Charges will be applicable.
Transfer of Stock Certificate & Lien on Gov. Securities.
Excess SLR consist of Central G-Sec & State Govt. Securities (SGS).

Consortium Finance Scheme With UCB for Their Customers

Types of Loan: 1) Working Capital Facility 2) Term Loan

Lead Bank Eligibility

Bank should be in profit for the last 3 years.
CRAR should be more than 9%.
CRR and SLR should be well maintained.

Borrower Eligibility

Borrower unit account should be a performing account.
Borrower should be banking with the lead bank for at least 3 years.
External rating for loan above Rs. 25.00 crore.

Rate of Interest: ROI charged by lead bank.
Quantum of Loan Amount: MSC Bank's loan share will be 3 times the lead bank's loan share.
Term Loan Period: As decided by Lead Bank but max. 9 years (including max. two years moratorium period).

M.T. Loan For Computerization of Head Office And Branches For Urban Banks

Limit: 50% of own fund or 75% of actual expenses incurred for computerization, whichever is lower.
Repayment Period: Max. 3 years.

Eligibility

Last 3 years statutory audit class — A or B.
Continuous last 3 years profit.
Gross NPA — not more than 15%.
Net NPA — not more than 5%.

Loans To UCBs For Construction / Purchase of Head Office And Branches

Loan Limit: 100% of own fund of UCBs. Maximum Rs. 5.00 crore (85% of the project cost).
Margin: 15% of project cost.
Security: Collateral Security 1 : 1.5.
Repayment Period: 7 years.
Loan will not be granted for purchase of plot.

Eligibility

Statutory audit report A or B from the last 3 years.
MSC Bank's Obligator Rating (OR) must be 4 as per our Bank Risk Assessment Module.
Bank should not have any restriction / direction imposed by the RBI.
Pre-approval of RBI / Cooperative Department for the loan is essential.

Maharashtra State
Co-operative Bank Ltd.