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  • Msme Bills Discounting for Kerala

To pay off the bills raised by the PWD Contractors/ Contractors/ Suppliers / Accredited Agencies of all other Departments/ Institutions / Local state Government Department on Government of Kerala (GOK).

Nature of Facility Working Capital – Bill Discounting For the Branches coming under Trivandrum and Kozhikode Circles.
Purpose To pay off the bills raised by the PWD Contractors/ Contractors/ Suppliers / Accredited Agencies of all other Departments/ Institutions / Local state Government Department on Government of Kerala (GOK).
Target Group
  • Commission agents holding Mandi Board License for minimum one year
  • The scheme shall be applicable for accounts Risk rated up to Moderate Risk.
Quantum of loan No Higher/Lower Ceiling
Margin NIL
Security

Primary: Hypothecation of Book debts.


Collateral:
I) Existing clients with credit limits: Securities available to the existing exposure to be extended to the subject limits also. However, the same may not be factored into while arriving at security comfort in respect of existing limits in view of availability of promissory notes of GOK, guaranteeing such limits.
II) For the new clients: Collateral securities may be explored depending on the type of customers and need for the proposal.
Tenability Maximum of 6 Months from the date of discount.

Trivandrum and Kozhikode Circles

  • Circle Head is permitted to designate the branches in their Circle wherein the scheme to be implemented.
  • Circle shall intimate the list of designated branches to HO along with quarterly performance report.
  • Circle has to ensure that the facility is being extended only through the designated branches.
  • If the branches wherein, presently the facility has been extended, are not proposed to be designated by the circle as per (a) above, then the present outstanding liability under the scheme in those branches is to be cleared as per the guidelines and non-designated branches should not extend the subject facility to any contractors.
  • Scheme available to the existing as well as new creditworthy clients under MSME category with KYC compliance and due diligence, who are in the approved list of contractors of Government of Kerala (GOK) with satisfactory dealings, subject to ensuring that they are not enjoying any working capital limit with other Banks/FIs.
  • Till 31.03.2026 (subject to performance review of the scheme as on 30.09.2025)
  • Customer Identification proof along with NF998 MSME application.
  • Address Proof of unit and promoters.
  • License/permissions.
  • Financial papers for the last 3 years with ITR and projections.
  • Details of Guarantor with proof of assets.
  • Stock Statement.
  • As per extant guidelines as applicable to such Scheme. Supportive documents: As per Scheme devised by GOK, Form I, II, III, IV, V and Promissory Note.

Minimum ROI: RLLR p.a, Maximum ROI: RLLR+1.55 p.a subject to risk rating and collateral value.

 

Processing Charges :

50% concession in applicable Processing charges for each transaction with a maximum of Rs.7500/- as under:

Loan amount Charges*
Upto and inclusive of Rs.10000/- Rs.50/-
Above Rs.10000/- and upto Rs.10 lakhs Rs.4/- per Rs.1000/- or part thereof with a minimum of Rs.100/-.
Above Rs.10 lakhs Rs.4/- per Rs.1000/- or part thereof with a minimum of Rs.4000/- and maximum of Rs.7500/-

*On applicable charges from time to time.

Processing Charges to be collected upfront from the contractor.

  • Credit Audit and Pre-release Audit is applicable, if the individual bill amount is above the prescribed cut off limit for Credit audit and Pre-release audit.
  • Discounting of bills should be strictly for works carried out/completed works in accordance with the work order of GOK and not towards advance payments.
  • Not to discount the bills which are already discounted by other Banks/FIs.
  • Keeping track of payment schedule for the pending bills of Govt. of Kerala.
  • Due date to be diarized and followed up effectively for realization of discounted bills.
  • Extant guidelines are to be adhered to, in respect of borrowers enjoying WC limits/Bill Discounting limit with us and other type of limits with other Banks/FIs.
  • Recovery measures are to be initiated in respect of overdue bills pending after the tenure of six months after ascertaining the reasons from GOK.
  • 2% p.a. over the contracted rate of interest for overdue bills (after the tenure of six months from the date of discount), i.e. due to delay in payment by GOK.
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Last updated on 22-01-2026 01:15 AM

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