MSME Checklist for Fresh Term Loan for purchase of Vehicles/Machinery/Equipments

All the checklist mentioned for OCC limit is also applicable for TL, additional documents required is mentioned below:

• DPR-Detailed project report

• Quotations

Kindly note the following:

• Check proposed repayment period as per DPR and match with your BANK/FI guidelines

• The DPR shall cover the projections period till the last repayment of proposed TL

• The promoters contribution shall comply your Bank/FI guidelines.

• Check the DER-Debt Equity Ration, it should be within the benchmark level as per your Bank/FI guidelines. Standard level- shall not be more than 2:1

• Check the FACR-Fixed assets coverage ratio it should be within the benchmark level as per your Bank/FI guidelines, Standard level- shall not be less than 1.33.

• Check the overall/average DSCR- Debt sevice coverage ratio it should be within the benchmark level as per your Bank/FI guidelines.Standard level- shall not be less than 1.50.

• Verify the genuineness of quotations by sending official letter or mail to Supplier/Vendor.

• Stock/Book debt statement may not be required for Term Loan