Manufacturing Loan

BoB provides timely long term financial assistance for setting up of new manufacturing units or for expansion of existing units at attractive rate of interest. Loans can be sought for project finance, purchase of plant & machinery, working capital etc.

Eligibility

Any Individual, Firm or Company

Quantum

60% to 75% of the Project

Tenure

15 years maximum

Interest Rate

Product Floating Floating- 5yrs Reset Fixed Rate
Manufacturing Companies 11.07% 11.47% 13.00%
Mining & Quarrying 9.49% 11.18% 12.00%
Manufacturing- Working Capital 11.05% – –

Required Documents

  • Application requesting for finance

  • Copy of Industrial License

  • Government’s approval for project establishment

  • Clearance from National Environment Commission

  • Detailed Project Report with brief description of the product(s), location of the project, market study, raw materials, probable buyers and economic benefit to the country, etc. supported by financial projections

  • Estimates for Civil Works/Quotations for machinery & miscellaneous fixed assets

  • Audited financial statements for the last 3 years (in case of existing companies)

  • Ownership Certificate of the land/lease agreement etc.

  • Technical Collaboration Agreement/Technical Know-How Agreement

  • Letter assuring release of foreign exchange from Ministry of Trade and Industry in cases
    involving import of machinery / raw material.