(a) Valuation of Land. The market value shall be considered for calculating the value of the property. The market value shall be obtained either from the External Valuer empanelled by the Corporation or from the Revenue Department.
The External Valuer shall consider the following factors while fixing the market value.
Actual Cost of Acquisition x CII of the year in which asset is valued
CII of the year in which asset is acquired
(CII- Cost Inflation Index)
The Valuer has to ascertain the actual area legally owned by the titleholder based on local enquiry, verification of location sketch, survey plan, etc. The valuer shall arrange the survey plan through a private surveyor, if required.
The extent shown in the Title Deed or the Actual Extent in Legal Possession, whichever is lower, will be considered for valuation purposes. The final value of the land shall be based on factors like the type of land, road access, location, distance from nearest town/ city, availability of infrastructure, proximity to public/ private institutions, saleability of the land, demand in the market, etc. Sufficient reasoning should be provided in the valuation report for the variations from document value/ fair value/ indexed cost of property/ similar document value.
The market value of the land (Valuation Certificate) issued by the Revenue Department of Government of Kerala, by an official of not below the rank of a serving Tahasildar, as per the guidelines issued by the Government from time to time, can also be accepted by the Corporation, instead of the External Valuer report.
(b) Cost of Building for Project Cost and Security purposes. The value shall be fixed according to the prevailing cost of labour& materials as approved by the Institution of Valuers, Thiruvananthapuram. Depreciation, shall be provided for existing buildings.
(c) Margin Calculations. Assets and its margin that can be considered for security purposes shall be as follows:
|
|
Item |
Margin (%) |
Value taken as security (%) |
|
|
a) |
Land including land development/land scaping/ Gardening |
NIL |
100 |
|
|
b) |
Building / Building Renovation |
15 |
85 |
|
|
c) |
Plant & machinery and equipment including erection, electrification |
15 |
85 |
|
|
d) |
Second hand imported and reconditioned machinery |
50 |
50 |
|
|
e) |
Other second-hand machinery |
50 |
50 |
|
|
f) |
Moulds& Dies |
25 |
75 |
|
|
g) |
Tools/Accessories/Fittings |
75 |
25 |
|
|
h) |
Furniture /Fixtures / shelf |
|
|
|
|
25 |
75 |
|
|
|
75 |
25 |
|
|
|
i) |
Technical know how |
|
|
|
|
75 |
25 |
||
|
100 |
Nil |
||
|
j) |
Computer & accessories |
50 |
50 |
|
|
k) |
Software |
|
|
|
|
50 |
50 |
|
|
|
100 |
Nil |
|
|
|
l) |
Interior decoration |
75 |
25 |
|
|
m) |
Office equipment and furniture |
75 |
25 |
|
|
n) |
Medical Diagnostic equipment which are part of a hospital (life of the items should cover the loan period) |
50 |
50 |
|
|
o) |
Diagnostic and testing equipment/ lab equipment |
50 |
50 |
|
|
p) |
Furnishing/ curtains/ and decorative items |
100 |
NIL |
|
|
q) |
Crockery, cutlery and vessels |
75 |
25 |
|
|
r) |
Vehicles including extra fittings cost of body, essential tools and excluding insurance, Road tax etc. |
50 |
50 |
|
|
s) |
DG set |
70 |
30 |
|
|
t) |
Lift, Firefighting equipment, Air Conditioners etc. |
70 |
30 |
|
|
u) |
Cost of optical fibre lines |
100 |
NIL |
|
|
v) |
Gymnasium equipment |
50 |
50 |
|
|
w) |
Reference books |
100 |
NIL |
|
|
x) |
Kitchen equipment including erection and electrification |
50 |
50 |
|
|
y) |
Fixed Deposit/ Gold/ guaranteed Surrender Value of IRDAI approved Insurance policies |
Nil |
100 |
|
|
While calculating security value, preliminary expenses, other intangible expenses, deposits with Electricity Board, Margin Money for Working Capital etc. are not to be taken. All values to be considered after applicable depreciation. |
|
|||
(a) Benchmark Asset Coverage Ratio (ACR). The benchmark Asset Coverage Ratio (ACR) for all loans shall be as follows (except for CMEDP Loans/ Contractor Loans/ Start-up loans/ other Special Schemes where security requirements are specifically provided):
| Sl No |
Parameter |
Norms |
|
|
|
MSMEs in Manufacturing Sector |
New Entity |
1.40:1 |
|
Existing Entity |
1.30:1 |
||
|
|
MSMEs with CGTMSE Coverage |
1.20:1 |
|
|
|
Service Sector Projects |
1.75:1 |
|
|
|
Commercial Real Estate (CRE) Projects including Short Term Loan |
2:1 (25% collateral coverage within overall ACR of 2:1) |
|
|
|
Commercial Real Estate Projects (New entrants) Short Term Loan |
2:1 |
|
|
|
Short Term Loan (Other than CRE) |
1.50:1 |
|
|
|
Granite Crushing Units |
Overall 1.4. Mining area should not be considered for security purposes. The loan amount earmarked for machinery shall be covered with collateral security coverage of 50%. This collateral shall not be quarry land. |
|
|
|
COVID-19 Support scheme 1.0 for existing customers |
MSME – 1.25:1 (Relaxable to 1.13:1 to manufacture sector) |
|
|
|
COVID-19 Relief Loan Scheme 2.0 for Existing Customers of KFC in MSME, Healthcare and Hospitality Sector (New Scheme) |
1:1 |
|
|
|
Working Capital component |
Coverage with at least 150% collateral security. |
|
|
|
Rented/ leased Premises |
Minimum overall ACR required is 2:1. |
|
|
|
CMEDP Loans * |
1:1 |
|
* The minimum loan amount that can be applied under CMEDP for FY 2021-22 shall be Rs.5 lakh.
(b) Minimum security requirements for Government Contractor Loans. Minimum security requirements for various facilities to Government Contractors shall be as follows:
|
Sl No |
Facility Name |
Norms |
|
|
Performance Guarantee/ Bank Guarantee Facility |
100% |
|
|
Work Execution Facility |
100% |
|
|
EBDS Facility- Early Bill Discounting Facility with Security |
50% |
|
|
EBDS Facility- Early Bill Discounting Facility without security |
Nil |
|
|
GBDS Facility - Government Bill Discounting Facility |
Nil |
|
|
EF Facility - Equipment Finance Facility |
100% |
