Mid sized Hotels/Restaurants/Food joints/Bakeries/Fast Food outlets catering to the growing "Middle Class" segment of the population

Motels/Highway Inns/Restaurants/Kiosks/Mess/ Canteens and Tea Stalls located within 6 to 7 Km radius from the branch, which are catering to "commuters on the highways"

Caterers of all kinds who supply food to schools/colleges or for domestic functions like Birthdays, Marriages, parties etc. and staff canteen in established organisations.

Refreshment stalls in Railway stations/Bus stations/
Fast food centres situated in important Tourism centres, Temple towns, National Highways (in places like Ooty, Simla, Kodaikanal, Agra, Kancheepuram, Madurai, Tirupati, Shirdi, Mathura etc.)

Borrowers shall preferably be running/having existing units with the potential to improve/expand the existing business.

New entrepreneurs with requisite technical back up such as "Diploma/Degree in catering technology" with minimum of 3 years experience in hospitality industry/hotel industry in Metro Cities shall also be considered.

The purpose of the loan shall be:

• Renovation of the premises, viz., refurnishing, carrying out major repairs in civil structure, interior design/decoration, replacing the old furniture/kitchen equipments.
• Installation of/replacing AC/Air cooler systems, freezers, Exhaust fans, Van/Tempo, purchase of delivery tri-cycles etc.
• For taking up "franchise selling" of branded eatables/ice-cream/"Fast Food"/Pizzas/Bakery Products/"Amul"/"Arun"
• For purchase of hot packs, installation of Acqua Guard System, Utensils, serving trays, tumblers, crockeries etc.
• For provision of musical system/musical instruments in the hotel premises
• For setting up of Bar-Restaurants
• For financing premises to be acquired on lease basis for setting up new hotels. Loan for rent advance upto a maximum of Rs.2.00 lakhs shall also be considered. This is to encourage Diploma/degree holders in Hotel Management/Catering Technology

• Units in own premises/Units in leased premises with un-expired lease covering the repayment period.
• Units having licence to conduct Hotel business/Catering from Municipal/Local Administration

Need based assessment keeping in view the existing turnover and the projected turnover. The per borrower cap/ceiling shall be as follows:

Loan amount shall be linked to "Major Capital" expenditure proposed after deducing the margin/owner's contribution

Purpose	Margin
For creation of assets viz., standard equipments such as Refrigerators/AC systems/Air Coolers etc.	15%
For Franchisee, Fees/Advance money payments	15%
For all other items/renovation/starting New Venture	15%

 

• 11.50 % floating - For Working Capital
• 12.00 % floating - For Term loan
  

  In case of loans given to Women entrepreneurs holding Diploma/Degree in Hotel Management/ Catering Technology the rate of interest shall be reduced by 1.0% (from the date of advance) at the end of the repayment period if the account is repaid promptly.

Based on the "income/surplus" projected subject to a maximum period of 5 years inclusive of a holiday period not exceeding 3 months.

One time processing charge of Rs.250/- per lakh or part thereof for loan limits above Rs.2 lakhs

In addition to the hypothecation of the assets including assets created out of bank loan, additional security by way of EM of immovable property such as the "premises of Hotel Unit" or in case that is not possible any other property, the marketable value of which may not be less than 100% of the loan amount.

In case third party properties are offered, Guarantee of the third party shall also be obtained.