MSME Collateral Free Loan
The specialty of collateral free loan :- Collateral-free loans do not require you to pledge any asset as security. It brings peace of mind and opens up unlimited opportunities. One can avail collateral-free loans for various purposes. Such loans can help you meet business goals as well as personal needs like higher education, medical emergencies, marriage expenses, etc.
How is the service fee payable for the first year?
In the first year of coverage of each guaranteed unit, the Annual Service Fee is worked out on pro-rata basis i.e. at the applicable rate of fee charged for the period (no. of days) of outstanding, starting from the date of commencement of the guarantee cover till March 31. For calculation of Annual Service Fee, number of days in a year is taken as 365. For subsequent years, service fee is charged for the whole year, on the credit facility guaranteed except for terminal year or closed cases where it is on pro rata basis.
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