RAM PLP Centre, Behind PO Khaliyar,

Joginder Nagar Road, Khaliyar, Mandi

Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

Dated 30.11.2024

To
M/s Mount Brook Hotel (Prop. Sarojini Sood)
Corporate Office:- Village Muhal Aleo
Manali Kullu
Himachal Pradesh Distt Kullu 175131..
UDYAM Registration:- UDYAM-HP-08-0017848

Name of Promotor: - Mrs. Sarojini

Residential Address :- W/o Balbir Chand House No -347,
Ward No-13 Near Banga Traders Post Office- Dhalpur Ghandi Nagar K
ullu Himachal Pradesh 175101.
PAN- AGPPS2328N
Aadhar No.- 7485-8146-5274

Name Of Guarantor:- Shruti Bansal

Wo Rohit Bansal, # 347 Near HDFC Bank,
Dhalpur (Mahant Behr) Kullu HP 175101.
PAN- BXRPS3194L
Aadhar No.- 5999-0553-7576

Through
Branch Head
BO Kullu DP
Regarding: - Proposal for sanction of

Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook Hotel (Prop. Sarojini Sood) for
 ₹ 155.50 Lacs for construction of proposed hotel/ Guest house building & ₹69.50
Lacs for purchase of fixture/ furniture/ machine/ equipment for the same Building.
to be covered under MSME Plus MSME DIVISION CIRCULAR NO. 55/2023.
Sir
In reference to the captioned subject, competent authority has sanctioned above mentioned credit
facilities in name of M/s Mounk Brook Hotel (Prop. Sarojini Sood) with terms and conditions
mentioned in annexure -1
ANNEXURE –I
DETAILED TERMS AND CONDITIONS OF LOAN ACCOUNT
Name of the Unit/ Borrower: M/s Mounk Brook Hotel (Prop. Sarojini Sood) (Rs. in Lakh)
Facility Limit
Cash Credit 0.00
1
TL 225.00
NFB facilities 0.00
Total 225.00
2 Security
i) Primary (Rs. in

Page 1 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

lakh)
Facility Details of Security Valuation Details Ownership*
Term Loan Land and proposed building to be MV-₹176.00 Lacs Smt Sarojini
Construction constructed upon the land as mentioned RV-₹ 149.60 Lacs
below: As per valuation by Ar
Land measuring 00-04-78 hectare being her Mayur Kant Dated
478/640 share out of land measuring 00- 26.11.2024.
06-40 hectare i.e 00-04-78 hectare
comprised under Khasra No 357, contained
in khata & Khatauni No 367/453,
incorporated in jamabandi for the year
2020-21, situated in Muhal Aleo Patwar
Circle Vashist, Kothi Jagatsukh, Tehsil
Manali Distt Kullu Himachal Pradesh.
Term Loan Exclusive charge on Plant & Machinery and furniture and fixture purchased out of
bank finance.
* In case of ownership of company, details of creation of charge with ROC as under should be
mentioned.
ii) Collateral (Rs. in lakh)
Date of
Fair Market Value
SI. Details of Type of Title
Facility Owned by Date of
No Security Charge Search
Valuation
Report
As per MSME Div Cir 55/2023 dated 01.08.2023, No collateral security is required for Term Loan
portion, in case Primary Security is in the shape of Land or Land & Building.

Details of BM Valuation report security wise:

As per IRMD L&A circular no.53/2020, the concept of BM valuation has been done away with. Further,
Counter Checking the value of the property assessed by the value through BM Valuation also stands
withdrawn.

Confirm that the properties mortgaged/property to be mortgaged are SARFAESI compliant or

not. (Yes/No, In case of No, details along with the reasons, justifications and action proposed
should be furnished.): Yes, as per NEC by Abhishek Thakur dated 22.11.2024.
i. Guarantee
Name Date of CR Networth Remarks
Sarojini Sood 16.11.2024 240.00 Lacs Verified by Branch Official
Khim singh 16.11.2024 40.00 Lacs
SNW of Promotor & Guarantor is Prepared by Sh Praveen Rana Officer & Verfied by Sh Shivendra
Pratap Singh Chief Manager (5184668)

iv) Status of verification of the IP& Stocks

Name of the Officer, who visited the site/IP/ Verified
Designation PF No
the site/IP
Neeraj Aggarwal Astt General Manager 5134663
Sher Singh Chief Manager 5145517
Shivendra Pratap Singh Chief Manager 5184668
Praveen Rana Manager 5206064
v) Status of Registration with CERSAI:
Whether the acknowledgement for registration with Cersai will be done before disbursement
CERSAI has been recorded in Title-Deed register: No by the branch.

Page 2 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

record fount.
If yes, the Asset ID/Security Interest ID No NA
If no, the reason for not registering with CERSAI be NA
given

Pricing/ Interest
Facility Existing Proposed Applicable
Term Fresh Sanction **Repo rate (6.50%)+ ***Markup **Repo rate (6.50%)+ ***Markup
Loan (2.65%) + BSP (0.10%) + Spread (2.65%) + BSP (0.10%) + Spread
(0.75%) =10.00% (0.75%) =10.00%
*ROI is as per MSME Cir No 55/2023 for Proposals having IRR as B1& B-2 & having collateral
coverage less than 50% i.e RLLR+ BSP+ 0.75%
**The change in applicable rates will be effective from the next working day as and when RBI amends
the repo rate.
***Further, Mark up + BSP shall be reset after a period of 3 years from the date of opening of account
or at such intervals as may be permissible under the RBI guidelines/regulations from time to time.

Margin (%)
Project cost Cost Margin (%) Margin Required Bank
amount Finance
Land 0.00 0.00 0.00 0.00
Buildings (construction) 207.34 25%* 51.84 155.50
(Customer has offered
25.00 %)
Plant& Machinery & 93.23 25.45% 23.73 69.50
Fixed assets
WC margin ---- ---- ---- ----
Preoperative expense 2.00 100% 2.00 0.00
Total project cost 302.57 25% 77.57 225.00
Implementation and Disbursement
 Implementation Schedule
Activity Starting Date Completion Date
Construction of hotel December 2024 to June 2026
Additions /Furnishing – interiors/ P&M July 2026 – September 2026
Trial Run October 2026- November 2026
Commercial operation December 2026
 Disbursement schedule:
Period of Draw Down Amount (Rs. In Lakhs)
December 2024- March-2025 30.00
April-June 2025 30.00
July-August 2025 25.00
September- December 2025 25.00
Jan- March 2026 25.00
April – June 2026 20.50
Loan Disbursed for construction 155.50
For P&M and other June 2026 to Sept 69.50
assets 2026
Total 69.50
TOTAL 225.00

Page 3 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

Mode of Disbursement: Disbursement to be made in stages only after end use of

previous disbursement along with Margin
 The payment shall be made directly to the suppliers as far
as possible. Original bills/ cash memos in the joint names
of bank and the firm for all the fixed assets financed by
bank shall be submitted by the borrower and to be placed
on bank’s record.
 TL for construction will be released in stages as per
physical progress of the project. An inspection/ regular
visit must be conducted for ensuring the end use
verification of funds prior to subsequent disbursement and
CA certificate be obtained from time to time regarding
promoter share invested in the project.
 The progress in implementation of the project will be
monitored/ reviewed by the Bank on monthly basis and
necessary corrective steps will be got initiated, if required,
from time to time specially in case of time and cost run-
overs. The borrower shall facilitate the bank for
compliance of the above.
 Firm to provide the complete details of the beneficiaries/
contractor / suppliers of goods to whom the payment to be
made in respect of work done/advance towards the
disbursement of term loan. Disbursement of term loan to
be made directly to the beneficiaries/contractor /suppliers
of goods and not to the account of the borrower.
 Borrower shall furnish utilization certificate from CA
(with UDIN prior to first disbursement. Further, after
completion utilization certificate from CA shall be
obtained again prior to final disbursement.
For Misc. Fixed Assets & Plant & Machinery: -
 Further, it is pertinent to mention that Fixed assets & P&
M has to be purchased after construction of proposed
building.
 Further it is stipulated for branch (Head) to obtain Fresh
quotations of material to be purchased as per project
report after proper due diligence as per bank guidelines
after complete construction of building & if fluctuations in
Market rate of the assets to be purchased is observed,
term loan will be disbursed accordingly. In Case of cost
run-overs of assets additional margin to be borne by
proprietor of Firm.
 The payment shall be made directly to the suppliers as
far as possible. Original bills/ cash memos in the joint
names of bank and the firm for all the fixed assets
financed by bank shall be submitted by the borrower and
to be placed on bank’s record.
 The progress in implementation of the project will be
monitored/ reviewed by the Bank on monthly basis and
necessary corrective steps will be got initiated, if
required, from time to time specially in case of time and
cost run-overs. The borrower shall facilitate the bank for
compliance of the above.

Page 4 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

 BO/ CMC to comply the preventive steps for
verification of vendors/ quotation and prices as per
LA 85/2023 dated 11.08.2023 and subsequent
guidelines issued by bank to safeguard the interest
of bank prior to disburse.
 BO/ CMC shall obtain the acknowledgment from
vendors for confirming the mode of disbursement
(Demand Draft/ RTGS/ NEFT only) and the details of
beneficiary account details prior to disburse.

Repayment Schedule of Term Period Description Details of the Installments

Loan FY 24-25 Moratorium of 4 Interest to be served as and when due
months during moratorium period starting from
December 2024.
FY 25-26 Moratorium of 12 Interest to be served as and when due
months during moratorium period.
FY 26-27 Moratorium of 8 Interest to be served as and when due
months during moratorium period.
Repayment of 4 Repayment started from December 2026
months by an EMI towards principal of an
amount Rs. 2,34,375/- + Interest to be
served as and when due.
FY 27-28 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY 28-29 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY 29-30 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY 30-31 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY 31-32 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY32-33 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY 33-34 Repayment of 12 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
FY 34-35 Repayment of 08 Repayment by an EMI towards principal
months of an amount Rs. 2,34,375/-+ Interest to
be served as and when due.
Note:
Repayment period in months / 120 Months
quarters / Half year
No. of instalment 96
Monthly repayment amount Rs. 2,34,375/- + interest
(monthly basis)
Repayment start date December 2026
Interest Repayments Interest during moratorium will
be served by the borrower as
and when levied
End Date November 2034

Page 5 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

Door to door tenor 120 months
End Use of Funds a) For ensuring end use of funds, the disbursement shall be
made directly to the Supplier.
b) CA Certificate/ Chartered Engineer’s certificate (in
applicable cases) on actual status of implementation &
infusion of funds to be obtained.
c) CA Certificate of end use of funds should be obtained (in
applicable cases).
d) The financial statements (Balance Sheet and Profit
&Loss Account or other relevant statements etc.) be
obtained from the borrower in time to ensure end use of
the funds.
Validity of Sanction (in months) 6 months from the date of sanction.
Credit Information Report (CIC) Rs. 100 per CIRs + GST @ 18% for drawing Consumer CIR
Charges from CIBIL Data Base & Equifax Data Base as per L&A Cir No
12/23 dated 25.01.2023
Rs. 500/- Per CIRs+ GST @ 18% for drawing Commercial CIR
from CIBIL Data Base as per L&A Cir no. 12/2023 dated
25.01.2023.
Mortgage Charges Mortgage charges to be borne by Party as per LA 63./2022
dated 04.05.2022.
Documentation charges Exposure Charges
Upto ₹ 10 Lakh Nil
>₹ 10.00 Lacs to ₹ 1Cr ₹ 5000/-
> ₹1 Cr to ₹5 Cr ₹ 10000/-
> ₹5 Cr to ₹50 Cr ₹ 20000/-
Rs. 10,000.00 + GST as per loans & advances circular no. 207 /
2021
Further 50% relaxation has been provided under PNB MSME
PRIME PLUS SCHEME as per MSME Div Cir 55/2023 dated
01.08.2023.
thus applicable charges are Rs. 5000.00/- + GST
Inspection Charges Rs 5000/- + GST As per loans & advances circular no. 65 / 2023
dated 13.06.2023.
Slab Charges/ Annum
Up to ₹5.00 Lakh NIL
Above ₹5 lakh to ₹1 Crore ₹ 1000/-
Above ₹1 Crore to ₹5 Crore ₹ 5000/-
Above ₹5 Crore to ₹10 Crore ₹ 10000/-
Further the charges shall be levied quarterly on pro-rata basis in
2nd week of the last month of the Quarter.
Frequency of inspection As per MSME Div Cir 55/2023 dated 01.08.2023, Half yearly
inspection for regular accounts and monthly for accounts in SMA-
1/SMA-2 category till account turns regular.
Annual Review of Term Loan As per LA 63/2022
For term loan above ₹1 Crore:
1. During implementation stage: @ 0.10% maximum up to
Rs. 10.00 lakh
2. After implementation: @ 0.05% maximum up to Rs. 5.00
lakh

Page 6 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

Method of calculating review charges: Where disbursement is
being made in stages, the annual review fee is to be charged on
the sanctioned limit whereas in case the sanctioned amount has
been fully disbursed and the repayment has started, the review
charges shall be levied on the outstanding amount till the
account is fully adjusted. The annual review fee is to be charged
on the anniversary date of 1st disbursement.
Upfront Fee 1.25% + GST i.e. Rs. 281250/- + GST as per loans & advances
circular no. 63/2022
Further 50% relaxation has been provided 04.05.2022 as per
MSME Div Cir 55/2023 dated 01.08.2023.
i.e 50% of (Rs 1,40,625/- + GST)
thus applicable charges are Rs. 1,40,625/- + GST
CERSAI Charges
Segment Charges
Creation or modification of 1) Up to ₹5 Lakh – ₹50/-
Security Interest in favour of 2) Above ₹5 Lakh – ₹100/-
secured creditor
Any application for information ₹10/-
recorded / maintained in the
Register by any person
(CERSAI Search)

Satisfaction or Correction of Nil

any existing security interest

CGTMSE guarantee fee & Annual Not Applicable (As per MSME Div Cir 55/2023 dated 01.08.2023,
service fee No collateral security is required for Term Loan portion, in
case Primary Security is in the shape of Land or Land &
Building.)
Commitment Charges Utilization Level Charges
Utilization Level less than 50% :- 1% p.a.
Utilization Level 50% to < 60% :- 0.50% p.a.
Utilization Level 60% to < 70% :- 0.25% p.a.
Utilization Level > 70% :- NIL
Penal Charges The trigger events for levying of penal charges are as under:
a) Default in repayment of loans;
b) Irregularities in cash credit / Overdraft accounts;
c) Non-payment of demand bills on presentation and non-
acceptance/non-payment of usance bills on due dates;
d) Overdue bills either not debited in case of ODD or
where Drawing Power is not reduced in case of
Advance against Bills for Collection bills (ABC bills);
e) Non-submission of stock statements;
f) Non Submission of documents for review/renewal;
g) Excess borrowings arising out of excess current assets;
h) Non-submission of information under the Quarterly
Monitoring System (QMS) as per the terms & conditions
of sanction;
i) Non creation/perfection of Security as per Terms

Page 7 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

and conditions of sanction;
j) Non Compliance of Terms & Conditions of sanctions
(other than specified above); and
k) Non submission of external rating by eligible borrowers.
I. Penal charges for the period of default is to be levied as
under:
I. For any one of trigger events stated at point no. (a) to
(d) above: 2.00% p.a.
II. For two or more trigger events stated at point no. (a) to
(d) above: 3.00% p.a.
ii. On the total outstanding
i. For one or more trigger events stated at point no. (e)
to (j) above: 2.00% p.a.
Note for I and II: If the trigger events are a combination
of point (a) to (d) and point (e) to (j) then penal charges
shall be capped at 4% p.a., i.e., 2% on the
default/irregularity and 2% on the outstanding amount.
For trigger event stated at point (k): 1.00% p.a. on the Limit
sanctioned (FB+NFB) or actual outstanding (for term loans/EMI
based facility) as the case may be.

Concession Amount to be In case of account is being taken over by the other Bank/FI, in
Recovered in Case of Takeover of addition to levying prepayment charges as per extant Bank’s
the Account guidelines, all the concession/relaxation/waiver in the service
charge, ROI etc. granted since last sanction/ renewal of the
facility or sanction accepted by the borrower with such clause,
whichever is earlier, shall be withdrawn and such amount shall
be recovered from the borrower. A clause to this effect shall
invariably be incorporated in the sanction letter & acceptance of
borrower in this regard be obtained & kept on record.
Other Charges Other charges, Nesl and out of pocket expenses etc. to be
recovered as per IRMD L&A Cir. No. 207/2021 dated
31.12.2021, Cir. No. 63/2022 dated 04.05.2022, Cir. No.
65/2023 dated 13.06.2023 and changes made therein from
time to time.
Securities (Primary & Collateral) will be kept insured
comprehensively with agreed Bank’s Clause for full value
against all risks and at Party's Cost & Copy of Insurance Cover
Note/Policy to be kept in record.
Insurance It is the primary responsibility of the Firm to keep the securities
charged to the Bank fully insured at its cost with agreed bank’s
clause. The Firm to keep the same insured all the times and
provides copies of Insurance Covers/Policies for keeping the
same on bank’s record.
NEC and valuation charges As per Bank guidelines and actual expenses borne by
advocate/valuer.
Other terms and conditions a. KYC Compliance/Credit Information Report (CIR)/
Confidential Report (CR) / Documentation to be done as
per Bank’s extant guidelines.

Page 8 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

b. Unit should have required regulatory approvals.
c. Prior to release of the facility, legal vetting, PDC shall be
obtained as per Bank’s extant guidelines.
d. During creation of Mortgage, branch to ensure
compliance as per the checklist provided in Appendix-4 of
guidelines on Mortgage of IP/Assets. (IRMD L&A Cir
No.90/2021 dated 19.05.2021 and changes effected
therein from time to time, shall be adhered to.
e. Standard Covenants and Model Terms & Conditions (As
applicable to this scheme) as per IRMD L&A circular
no.188/2022 dated 31.12.2022, Circular No. 67/2023
dated 20.06.2023 and circular issued thereafter shall be
complied.
f. The party shall undertake to utilize the fund for the
purpose it is sought for and the same shall not be utilised
for speculative purpose or any business activity prohibited
by law.
g. Parties to undertake that they do not owe any overdue
statutory liabilities like GST, Income Tax, Corporation
Tax, Professional Tax, etc. and have obtained/renewed
licenses from statutory authorities required for carrying
out their business activity. The party shall provide
requisite photocopy of the above said
payments/receipt/documentation support in confirming the
compliance of this clause.
h. Branch / Office shall safeguard the securities in respect of
the credit facility in good and enforceable condition.
i. Borrower shall display Bank’s name as financier at the
place of the business.
j. The borrower may be encouraged to route its transactions
through PoS machine/ other digital platforms of PNB.
k. In case of Takeover, Existing & New Accounts, an
undertaking to be obtained from borrower/ firm stating that
the Unit will not avail credit facilities further from any
Bank/ FI in future years, unless NOC is obtained from
sanctioning Authority.
l. Compliance of RBI direction vide master circular no.
DBR.No.Dir.BC.10/13.03.00/2015-16 dated 01.07.2015
on Loans and Advances – Statutory and Other
Restrictions and all such circulars issued from time to
time.
m. All other applicable Bank’s guidelines, not specifically
mentioned in the scheme here, shall be complied with.

Pre-disbursement conditions:
1. CMC to obtain the acceptance of sanction letter from borrower.
2. CMC to ensure the compliance of MSME Div Cir 55/2023 dated 01.08.2023.
3. CMC to ensure the execution of valid and enforceable documentations as per extant
bank guidelines.
4. CMC to ensure the correct categorization of MIS codes, Scheme code, limit node &
interest table code.
5. CMC to ensure the deductions and recovery of all applicable charges prior to
disbursement.
6. CMC to register the charge on primary security over the CERSAI portal as per extant

Page 9 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

bank guidelines.
7. CMC to provide the Appendix IV of L&A Cir. no. 90 dated 19.05.2021 and confirm
that all documents and certified copies of chain of title required for creating the
valid & enforceable charge & RM are held on their record.
8. CMC to execute the valid and enforceable RM of primary security (land and building
including future constructions thereon) and ensure that charge has been registered
with revenue records.
9. CMC to ensure that tourism permission & NOC from NHAI/HPPWD has been
obtained.
10. It is stipulated that consent to establish shall be obtained by borrower and the same
shall be submitted to BO prior to disbursement while the consent to operate shall
be obtained by borrower prior to commencement of operation and the same shall be
submitted to BO/ CMC.
11. CMC to ensure that certified copies of will deed & transfer deed as mentioned in
certificate of chain of title in search report has been obtained before disbursement.
12. CMC to get the mutation done in favor of bank for full exposure in revenue record and
get the same verified by Bank Official. Copy of the same to be held on record.
13. CMC to ensure the margin as per sanction at each stage of disbursement.
14. CMC to do post sanction (pre disbursement) DDC & provide the related annexure as per
LA 85/2023 dated 11.08.2023.
15. Visiting Official of Branch to ensure to provide the Annexure XV by visiting officials as per
LA 24/2024 dated 17.02.2024.
16. CMC to ensure the compliance as per LA 68/2023 dated 30.06.2023 and to obtain the
clearance of PDC as per bank guidelines.
17. CMC to obtain the affidavit from borrower that
 No statutory liabilities of his/ her are outstanding as on date.
 All the licenses and permissions required to run the activities are obtained and valid as on
date.
 The funds raised by this credit facility will not be used for any speculative purposes or any
unlawful activity.
 There are no pending litigations against him or firm.
 He is neither a director nor a relative of director of any Bank.
 that the additional working capital which is needed to run the business, will be introduced
by the promoter itself.
 he will not make any amendments in location or management of business without prior
permission from Bank.
 that the Unit will not avail credit facilities further from any Bank/ FI in future years, unless
NOC is obtained from sanctioning authority.
 The construction will be done strictly as per approved map/ plan only.
 GST registration will be obtained within stipulated time prior to date of commencement of
commercial operations.
 Any escalation in cost of project or prices shall be borne by borrower.
 that any third party liability coming on the bank due to wrong information/details given by
borrower will be his/her responsibility.
 that consent to operate from HPPCB, FSSAI license/ permission, NOC from MC for
Garbage Collection, NOC from fire Department, NOC/ valid connection of HPSEB & IP
Jalshakti vibhag shall be obtained and provided to Bank prior to commencement of
commercial operations.
 that it will keep all the assets charged to bank, as primary or collateral security, insured
for its full value/replacement value with agreed bank clause and copy of relative
policy/cover note to be provided to the bank. In case, borrower fails to do so, bank may at

Page 10 of 23
 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

its discretion will get the insurance done at the cost of the borrower. However, primary
responsibility to get the assets insured is that of borrower.
 That he will maintain the capital at the same level as declared by him in DPR.
 That the firm will adhere to the projections submitted.
 Borrower to undertake that he/she will comply all the term & conditions / guidelines of
respective department pertains to run the hotel/restaurant.
18. CMC to provide the NEC from 2nd advocate as per bank guidelines prior to disbursement.
19. CMC to ensure that legal vetting has been done of all the documents as per bank
extant guidelines.
20. CMC to obtain the postdated cheques as per MSME Div Cir 47/2016.
21. BO to ensure the preliminary due diligence of KYC documents.
22. CMC to obtain the consent to establish from HPPCB for the unit through borrower.
23. Borrower shall furnish funds infusion certificate from CA (with UDIN prior to first
disbursement. Further, after completion of construction funds infusion certificate
from CA shall be obtained again prior to final disbursement.
NOTE:
Further it is pertinent to mention that borrower has not submitted any quotation for the
plant & machinery and fixed assets to be purchased. However, the same has been
mentioned in DPR. I t is stipulated for CMC to obtain Fresh quotations of material to be
purchased as per project report after proper due diligence as per bank guidelines after
complete construction of building & if fluctuations in Market rate of the assets to be
purchased is observed, term loan will be disbursed accordingly. In Case of cost run-overs of
assets additional margin to be borne by proprietor of Firm. CMC to comply the preventive
steps for verification of vendors/ quotation and prices as per LA 85/2023 dated 11.08.2023 and
subsequent guidelines issued by bank to safeguard the interest of bank prior to disburse.
CMC shall obtain the acknowledgment from vendors for confirming the mode of disbursement
(Demand Draft/ RTGS/ NEFT only) and the details of beneficiary account details prior to
disburse.

Post-disbursement conditions:
1. It is stipulated that CMC to obtain the bills and quotations in same line and ensure that same has
been kept in record. it is also confirmed by CMC/ BO that margin has been maintained.
2. Regular visit/ inspections for ensuring the end use of funds disbursed shall be conducted in
compliance of LA 41/2022 and any subsequent guidelines issued by bank.
3. It is also stipulate that End use of funds shall always be ensured prior to disbursing for
subsequent stages by CMC/ BO.
4. Branch to ensure that pension accounts & other deposits accounts of
promotors/Guarantor maintained at other FI are migrated to our bank before
disbursement of 2nd installment after ensuring end use of Ist installment. CMC to ensure
the same.
5. CMC to obtain the valuation report as per valuation policy of bank after completion of
construction and prior to start of commercial operations.
6. CMC to kept the valid and effective insurance policy till currency of loan for safeguard of
bank interest as per bank extant guidelines.
7. CMC to obtain the CA certified certificate for funds infusion in this project after completion.
8. The borrower/guarantor shall execute all necessary legally enforceable loan documents, as
per bank’s guidelines and to create charge on land and superstructure within 15 days from
disbursement of facility.
9. Ensure display of Bank’s name as financier at a conspicuous place of the business.
10. Ensure charge be entered in CERSAI portal for the full exposure of the borrower for all the
securities involved.
11. CMC to obtain the valid insurance policy as per bank extant guidelines.

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

12. Ensure to obtain GSTIN of the firm before commencement of commercial operations.
13. CMC to ensure that all the remaining statutory approvals to be obtained well in time and
the name of the new proprietor be updated on the all obtained approvals. Copy of the
same be held on record after verification through the concerned department.
14. CMC to ensure that the Hotel building be fully insured immediately on the date of the
disbursement. Seeing the present situation when due to heavy rainfall spell in the state of
Himachal Pradesh, a huge loss to the life and property has been reported, it is imperative of
immediate obtention of insurance to the full value of the Hotel with the proper Bank clause.
15. CMC to have discussion with the borrower for timely submission of the financial statements as
and when required in future as per Bank Guidelines so as to avoid overcharging of interest as
penalization.
16. CMC to ensure that proper Guarantees/Warrantees/AMC’s exist for the machinery/other fixed
assets to be purchased.
17. CMC to ensure that Hotel be got registered with Government of Himachal Pradesh in name of
M/s Mount Brook Hotel under the Himachal Pradesh Tourism Development and Registration Act
2002.
18. CMC to get the mutation done and get the same verified by Bank Official. Copy of the same to
be held on record.
19. CMC to ensure that securities charged to Bank (Primary and Collateral) are intact and fully
insured as per Bank extent guidelines.
20. CMC to ensure obtaining valid insurance to the full value of assets (Stock, Equipment’s,
Machineries etc.) duly insured in joint names of bank and the borrower with agreed bank
clause. CMC to ensure that the assets are always insured under bank clause to safeguard
bank’s interest.
21. Margins/Rate of Interest is subject to revision from time to time at the sole discretion of the Bank.
22. CMC to ensure execution of necessary documentation and to create valid mortgage of
properties as mentioned in Annexure III in favor of bank which shall be applicable under
SARFAESI Act 2002.
23. Property held in the account be mortgaged with the bank for full exposure of the borrowing
unit.
24. To obtain quotation of plant and machinery to be purchased (of GST registered vendor)
from borrower and verify the rate and vendor of the same.
25. Ensure that the assets are always insured under bank clause to safeguard bank’s interest.
26. Regular visit is being taken to the place of the stock held for the primary/collateral security as
per bank guidelines.
27. In case the party commits default in the repayment on due date the bank, CIBIL and/or RBI will
have an unqualified right to disclose or publish the name of party and its directors/ promoters
as defaulters in such manner and through such medium as the bank/RBI in their absolute
discretion may think fit.
28. Borrowing Firm to ensure that expansion of business, incorporation of new business, change
in line of activity, or any other change relating to constitution of firm be notified to the Bank.
29. No additional finance is given to the borrower enjoying the facility under the scheme merely by
revising the valuation of the property before the prescribed timeline.
30. Borrower undertakes to submit to bank financial statements of the firm and also of its allied
/family concerns every year as soon as the same are finalized and in case these are dealing
with other banks, statement of accounts or conduct certificate will also be submitted.
31. To comply with all post-sanction/ monitoring & control measures vide circulars issued from

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

time to time.
32. To ensure that disbursements are made phase-wise strictly as per the schedule mentioned in
board note and end-use verification of same be done on periodic basis.
33. To obtain NOC/clearance/ permission from Fire and Safety Department in due course.
34. Certification/ approval from FSSAI be obtained well in time and the same be renewed as
per the stipulations from concerned department.
35. Unit to obtain clearance from State Pollution Control Department (consent to operate).
36. Borrower to obtain/ renew all required permissions and statutory approvals required to run the
Guest House/Hotel from respective department and submit the same to bank in time.
37. The term loan shall be reviewed as per extant bank guidelines.
38. There is no revenue leakage in the account.
39. Borrower to undertake that all the statutory approvals shall be obtained and submitted to the
bank for constructing/ running the unit in due course which include but are not limited to NOC for
waste disposal, clearance from Fire & Safety Department, FSSAI Approval, approval from HP
Pollution Department, approval from tourism department, etc.
40. CMC to ensure that all the Bank extant guidelines are being followed to so as to mitigate
Compliance Risk and Other Risks arising in future and also be vigilant towards external
source of Information so that risks may be mitigated well in time.
41. CMC to adhere to exit policy as per IRMD L&A Cir. No. 148/2023 dated 16.12.2023 as and
when required. Also, monitor account as per triggers specified in the said guidelines.
42. It is stipulated that CMC to ensure the compliance as per LA 52/2024 dated 20.04.2024 and
any subsequent advisories issued by bank from time to time in order to mitigates the
risks in view of rising incidents of frauds in borrowal accounts.
43. The Rating has been conducted based upon projections provided by Promotor through BO Kullu
DP. If there are any changes in projections, CMC to ensure that rating shall be reconducted in
that case.
44. BO/CMC to ensure the regular repayment as per extant bank guidelines.
Other conditions:
1. CMC to adhere to exit policy as per IRMD L&A Cir. No. 148/2023 dated 16.12.2023 as and when
required. Also, monitor account as per triggers specified in the said guidelines.
2. CMC to ensure that all the Bank extant guidelines are being followed to so as to mitigate
Compliance Risk and Other Risks arising in future and also be vigilant towards external source of
Information so that risks may be mitigated well in time.
3. CMC to ensure that KYC, proper Documentations, forms signed by customer and duly
verified by BO , visit reports/due diligence reports are kept in record.
4. CMC to ensure that SNW part A is also held in their record.
5. CMC to ensure correct feeding of data such as Interest rate, Tables, Scheme Codes, Repayment
schedule, Security value, Industry classification, Sector classification, Activity etc. to avoid MOCs
at later stage.
6. BO to ensure the compliance of KYC guidelines as per OD (KYC) 05/2024 dated 21.03.2024 and
any subsequent guidelines issued by bank.
7. BO to ensure updating of data in CRM module of CBS for customer data as per latest KYC
documents.
8. Unit should have required regulatory approvals.
9. Prior to release of the facility, legal vetting, PDC shall be obtained as per Bank’s extant
guidelines.
10. In case of standalone Term Loan, borrower shall be required to open an operative A/c with our
Bank.
11. During creation of Mortgage, CMC to ensure compliance as per the checklist provided in
Appendix-4 of guidelines on Mortgage of IP/Assets. (IRMD L&A Cir No.90/2021 dated
19.05.2021 and changes effected therein from time to time, shall be adhered to.
12. CMC shall safeguard the securities in respect of the credit facility in good and enforceable

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

condition.
13. Borrower shall display Bank’s name as financier at the place of the business.
14. The borrower may be encouraged to route its transactions through PoS machine/ other digital
platforms of PNB.
15. Compliance of RBI direction vide master circular no. DBR.No.Dir.BC.10/13.03.00/2015-16 dated
01.07.2015 on Loans and Advances – Statutory and Other Restrictions and all such circulars
issued from time to time.
16. CMC to ensure proper classification of sector as per extant guidelines.
17. All other applicable Bank’s guidelines, not specifically mentioned in the scheme here, shall be
complied with.
18. In case the account is being taken over by the other Bank/FI, all the
concession/relaxation/waiver in the service charge, ROI, etc., granted since last sanction/
renewal of the facility or sanction accepted by the borrower with such clause, whichever
is earlier, shall be withdrawn and such amount shall be recovered from the borrower. A
clause to this effect along with concessions and existing card rate shall invariably be
incorporated in the sanction letter & acceptance of borrower in this regard be obtained &
kept on record.
19. Branch/Verticals/Offices to adhere Bharat/BHIM QR Code, PNB E-SWAR (Sound box)
guidelines circulated vide BA & RM (MAB) circular no. 02/2023 dated 18.05.2023 and
Credit Card & MAB circular no. 07/2023 dated 10.04.2023 and changes effected therein
from time to time, shall be adhered to.
20. Borrower shall display Bank’s name as financier at the place of the business.

STANDARD COVENANTS

LIST OF COVENANTS (15)

C1. The borrower shall maintain adequate books of accounts as per applicable accounting practices and
standards, which should correctly, reflects its financial position and scale of operations and should not
radically change its accounting system without notice to the Bank.
C2. The borrower shall submit to the bank such financial statements as may be required by the Bank
from time to time in addition to the set of such statements to be furnished by the borrower to the bank as
on the date of publication of the borrower accounts.
C3. In case of default in repayment of the loan/advances or in the payment of the interest thereon or any
agreed instalments of the loan on the due date(s) by the borrower, the Bank and / or the RBI will have
an unqualified right to disclose or publish the borrower’s name or the name of the borrower/unit and its
directors / partners / proprietors as defaulters / wilful defaulters in such manner and through such
medium as the Bank or RBI in their absolute discretion may think fit. (Regulatory)
Exemption: Name of directors of Government Undertakings are exempted from being reported as wilful
Defaulters. Instead a legend ‘Government of-------undertaking’ shall be added.
C4. The bank will have the right to share credit information as deemed appropriate with Credit
Information Companies (CICs) or any other institution as approved by RBI from time to time.
(Regulatory)
C5. The borrower shall not induct a person whose name appears in the LWD (List of Wilful Defaulters)
on its board or as a person in charge and responsible for the management of the affairs of the
entity.
In case such a person is found to be on its Board or as a person in charge and responsible for the
management of the affairs of the entity, the borrower would take expeditious and effective steps for
removal of such a person from the board or from being in charge of its management.
Under no circumstances the bank will renew/ enhance/ provide fresh credit facilities or
restructure existing facilities provided to such a borrower so long as the name of its promoter
and/or the director (s) and/or the person in charge and responsible for the management of the
affairs of the entity remains in the LWD.
Exemption:

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

A director other than whole-time director, including an independent director/ nominee director, shall
not be considered as wilful defaulter unless it is conclusively established that:
(i) the wilful default by the borrower or the guarantor has taken place with their consent or
connivance or
(ii) he/ she was aware of the fact of wilful default by the borrower or the guarantor, as
revealed from the proceedings recorded in the minutes of the meeting of the Board or a
Committee of the Board, but has not recorded his/ her objections to the same.
(Regulatory)
C6. In the event of default in repayment to our Bank or if cross default has occurred, the Bank will have
the right to appoint its nominee on the Board of Directors of the borrower to look after its interests.
Cross default will be defined as:
a. Default by the borrower to any other bank under Consortium / MBA
OR
b. Default by the borrower’s associate / sister concern / subsidiary to our Bank
Further, cross default would be deemed to have occurred only in case default to particular lender(s) is
not cured within 30 days.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
C7. In case of default not corrected within 60 days or restructuring of debt, the regulatory guidelines
provide for conversion of debt to equity. The bank shall have the right to convert loan to equity or other
capital in accordance the regulatory guidelines.
Exemption: The above covenant shall not be applicable in either of the following cases:
(i) Borrowal accounts of PSUs/Government entities created under specific Central/State Government
Statute/legislation.
(ii) Borrowal accounts Guaranteed by Central /State Government.
C8. Bank will have the right to examine at all times the borrower’s books of accounts and to have the
borrower’s factories inspected, from time to time, by officer(s) of the Bank and/or qualified auditors
and/or technical experts and/or management consultants / appoint ASM of the Bank’s choice and
conduct Stock and Receivable Audits at the prescribed periodicity as per Banks laid down guidelines.
Cost of such inspections / Audits shall be borne by the borrower.
C9. After provision of tax and other statutory liabilities, unless expressly permitted otherwise, the bank
will have a first right on the profits of the borrower for repayment of amounts due to the bank.
In case of Multiple Banking Arrangement/ Consortium, right on the profits of the borrower for repayment
shall be on priority of charge/proportionate basis, as the case may be.
C10. The borrower shall keep the Bank informed of the happening of any event likely to have a
substantial effect on their profit or business: for instance, if the monthly production of sales are
substantially less than what had been indicated, the borrower shall immediately inform the bank with
explanations and the remedial steps taken and / or proposed to be taken.
C11. Effect any change in the borrower’s capital structure where the shareholding of the existing
promoter(s) gets diluted below current level or 51% of the controlling stake (whichever is lower), without
prior permission of the Bank – for which 60 days’ prior notice shall be required. In case of limited liability
partnerships and partnership firm ‘promoters’ would mean managing partner for the purpose of this
covenant.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
C12. The borrower will utilise the funds for the purpose they have been lent. Any deviation will be dealt
with as per RBI guidelines.
C13. Promoter’s shares in the borrowing entity should not be pledged to any Bank / NBFC / Institution
without our prior consent.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
C14. Only for Term Loans (> Rs 50 crores) – Covenants (in relation to the undernoted parameters) (i.e.
DSCR, Int. Coverage, ACR, Debt Equity ratio) are to be stipulated for all term loans and these are
required to be tested annually on the basis of Audited Balance Sheet (ABS). Penal Charges will be

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

levied in case of breach of any two of the four parameters vis-à-vis values as approved by the
sanctioning authority in the sanction note. The penal charges will apply from the day after the date of
ABS, and shall continue till the breach is cured. The details are as under:
Parameter Benchmark for annual Penalty for adverse deviation in ratios
testing
DSCR As per Bank’s extant  Upto 10 % - NIL
Interest Coverage guidelines on benchmark  More than 10 % - 0.50 % p.a.
Asset Coverage ratio ratios or as decided by
Debt Equity ratio sanctioning authority

Further, it may be specifically indicated that the breach of financial covenant may be considered by
lenders as an Event of Default.
C15. Each of the following events will attract penal charges as applicable, at rates circulated from time to
time, except specifically permitted by the competent authority:
a. Default in repayment of loans;
b. Irregularities in cash credit / Overdraft accounts;
c. Non-payment of demand bills on presentation and non-acceptance/non-payment of usance bills on
due dates;
d. Overdue bills either not debited in case of ODD or where Drawing Power is not reduced in case of
Advance against Bills for Collection bills (ABC bills);
e. Non-submission of stock statements;
f. Non-Submission of documents for review/renewal;
g. Excess borrowings arising out of excess current assets;
h. Non-submission of information under the Quarterly Monitoring System (QMS) as per the terms &
condition of sanction;
i. Non creation/perfection of Security as per Terms and conditions of sanction;
j. Non Compliance of Terms & Conditions of sanction (other than specified above); and
k. Non submission of external rating by eligible borrowers.

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

LIST OF NEGATIVE COVENANTS (19)
NC1. In the event of default, or where signs of inherent weakness are apparent. The Bank shall have
the right to securitise the assets charged and in the event of such securitization, the Bank will suitably
inform the borrower(s) and guarantor(s)
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC2. Formulate any scheme of amalgamation or reconstruction.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC3. Undertake any new project, implement any scheme of expansion/ diversification or capital
expenditure or acquire fixed assets (except normal replacements indicated in funds flow statement
submitted to and approved by the bank) if such investment results into breach of financial covenants or
diversion of working capital funds to financing of long-term assets.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC4. Invest by way of share capital in or lend or advance funds to or place deposits with any other
concern (including group companies) / normal trade credit or security deposits in the ordinary course of
business or advances to employee can, however, be extended. Such investment should not result in
breach of financial covenants relating to TOL/ Adj. TNW and current ratio agreed upon at the time of
sanction.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC5. Enter into borrowing arrangement either secured or unsecured with any other bank, financial
institution, company or otherwise or accept deposits which increases indebtedness beyond permitted
limits, stipulated if any at the time of sanction.
NC6.Undertake any guarantee or letter of comfort in the nature of guarantee on behalf of any other
company (including group companies).
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC7. Declare dividends for any year except out of profits relating to that year after making all due and
necessary provisions and provided further that such distribution may be permitted only if no event of
default/breach in financial covenant is subsisting in any repayment obligations to the Bank.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC8. Create any charge, lien or encumbrance over the assets charged to the bank in favour of any
financial institution, bank, company, firm or persons.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC9. Sell, assign, mortgage or otherwise dispose of any of the fixed assets charged to the Bank.
However, fixed assets to the extent of 5% Gross Block may be sold in any financial year provided such
sale does not dilute FACR below minimum stipulated level. (Not applicable for unsecured loans.)
NC10. Enter into any contractual obligation of a long-term nature or which, in the reasonable
assessment of the Bank, is detrimental to lender’s interest, viz. acquisitions beyond the capability of
borrower as determined by the present scale of operations or tangible net worth of the borrower/ net
means of promoters etc., leveraged buyout etc.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC11. Change the practice with regard to remuneration of Directors by means of ordinary, remuneration
or commission, scale of sitting fees etc, expect where mandated by any legal or regulatory provisions.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC12.Undertake any trading activity other than sale of products arising out of its own manufacturing
operations.

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

Exemption: The above covenant is not applicable in case finance is for trading activity only or where
Credit facility has been provided to NBFC.
NC13.Permit any transfer of the controlling interest or make any drastic change in the management set-
up including resignation of promoter directors.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC14. Repay monies brought in by the Promoters / Directors / Principal Shareholder and their friends
and relatives by way of deposits / loans / advances. Further, the rate of interest, if any, payable on such
deposits / loans / advance should be lower than the rate of interest charged by the Bank on its term loan
and payment of such interest will be subject to regular repayment of instalments to term loans granted /
deferred payment guarantees executed by the bank or other repayment obligations, if any, due from the
borrower to the Bank.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC15. The borrower shall keep the Bank advised of any circumstance adversely affecting the financial
position of subsidiaries / group companies or companies in which it has invested, including any action
taken by any creditor against the said companies legally or otherwise.
NC16(a) - The borrower shall open/ maintain current account/s in accordance with the RBI guidelines
issued from time to time. (Regulatory)
NC16(b) – The Borrower shall deal with us exclusively under sole banking arrangement. In case of
facilities under Consortium/ multiple banking arrangement, the borrower shall offer the bank (on a right
of first refusal basis) at least pro-rata business relating to their activities including deposits, remittances,
non-fund based transactions including LC’s/ BG’s, bills/ cheque purchase, Forex transactions and any
interest rate or currency hedging business, Merchant Banking, IPO/ FPO, Capital market transactions,
Cash Management Product, Vehicle Loan etc.
NC17. No commission to be paid by the borrowers to the guarantors for guaranteeing the credit facilities
sanctioned by the Bank to the borrowers.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC18. Approach capital market for mobilizing additional resources either in the form of debt or equity.
Exemption: The above covenant is not applicable for Central and State PSUs availing credit facilities
from our Bank.
NC19. Fund Based Limits in Term Loan should be regulated through as Escrow Mechanism as agreed
among banks to avoid any kind of diversion of funds.
CHAPTER II
COMMON MODEL TERM & CONDITIONS
Model terms & conditions have been broadly grouped under two categories, viz. overall terms and
conditions applicable for all facilities (covered in Part A) and facility wise terms and conditions (covered
in Part B).
PART A. OVERALL TERMS AND CONDITIONS - APPLICABLE FOR ALL FACILITIES
To be complied with by the Borrower:
1. The validity of the sanction for Working Capital Limits shall be 12 months and the borrower shall
arrange submission of complete papers for renewal of limits at least two months before the expiry of
due date of renewal.
2. The Borrower shall execute all necessary legally enforceable loan documents as per bank’s
guidelines. Documents will be drafted / vetted by Banks’ counsels in respect of sanctioned limits
of ₹2 crore & above (both FB and NFB), at Borrower’s cost.
3. The Company shall under its common seal, if any, authorize any person as its attorney to execute
documents on its behalf. In case, the company does not have Common Seal, then the authorization
shall be made by either 2 (two) directors, or a director and the Company Secretary.
4. In case of Corporate Borrower, necessary resolution is required to be passed by the Board /
Shareholders, as per Company’s Act and as per Memorandum & Article of Association of the
company.

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

5. All fund based and non-fund based working capital facilities to be secured by way of 1 st charge on all
current assets, present & future, (and in case of consortium or multiple banking, charge to be
created on pari passu basis with other financing banks).
6. Search report from Registrar of Companies (RoC) shall be obtained every year and /or on each
registration/modification of charge and cost in this respect to be borne by the company.
7. Search Report / NEC
a. In case of renewal/review of existing limits where time period of 3 years has not lapsed,
mortgagor(s) shall indispensably provide an affidavit cum undertaking to the effect that the
mortgaged IP is still under their ownership and they have not created any subsequent charge
on the mortgaged IP and neither given on rent/lease.
b. Search Report/NEC shall be obtained if time period of 3 years has lapsed since the last
search report/NEC at borrower’s cost.
c. In case of enhancement / extension of existing charge on IP, Fresh Search Report / NEC shall
be obtained / updated since creation of last mortgage with Bank at borrower’s cost.
8. Borrower shall pay processing fee, upfront fee, Lead Bank Charges (if applicable) documentation
charges, inspection charges, NeSL charges. CERSAI charges, commitment charges and other
charges as per Bank’s Scheduled Charges.
9. Borrower shall pay Pre-Payment Charges @2% of the pre-paid outstanding amount in case of Term
Loans Only & not to other facilities such as Non-Fund Based, Working Capital Limits, Overdrafts etc.
in case of Takeover i.e. Loan is prepaid by the Non-Individual Borrower for Shifting to Other Bank /
FI.
However, no prepayment charges are to be levied in the following cases:
a. Micro & Small Enterprise (MSE) Borrower
b. Floating rate term loan (Non-Business) sanctioned to Individual Borrower.
c. Microfinance Loans (Except Loans to NBFC-MFIs)
d. Loans sanctioned at fixed rate with reset clause, if the borrower exercises his option for floating
rate interest at the time of reset.
e. Where the loans are prepaid by the borrowers from their own sources.
f. Where the borrower shift to other bank within 30 days from the date of issuance of circular for
upward revision in the spread to be charged in his account or change in other terms of sanction.
g. In case of upward revision in the interest rate due to reset of benchmark rates and the borrower
informs the Bank within 30 days from the date of reset & shifts its account to other Bank within 90
days from the date of reset.
h. Where the closure of loan is on the instance of the Bank on account of size of irregularity,
possibility of default in future or any other technical or other specific reasons.
10. Borrower shall provide “No Lien Letter” from the fabricators in respect of goods sent to them for
fabrication/processing.
11. Borrower shall provide an undertaking that the unsecured long-term loans raised from friends/
relatives shall not be repaid or shall not go below the level accepted at the time of sanction during
the currency of the bank loan, except with prior permission of the bank.
12. The Bank shall have the right to withdraw or modify all / any of the sanctioned conditions or stipulate
fresh conditions, under intimation to the borrower and their acceptance.
13. Bank's charge over primary / collateral securities wherever applicable to be got registered / modified
with ROC within the stipulated period of 30 days, as per requirements of Companies Act, and
certificate of registration of charge to be obtained and kept on record.
14. During the currency of Bank’s credit facilities, the Borrower shall not, without the prior approval of the
Bank in writing:
a. Divert / utilize Bank's funds to other sister / associate / group concerns or for purposes
other than those for which the credit facilities have been sanctioned.
b. Issue Bonus shares and dispose of shareholding of promoters wherever specifically
stipulated.

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

15. Margins / Rates of Interest/Charges are subject to revision from time to time at the sole discretion of
the Bank. The bank shall inform any change in Service Charges/Interest rates through the official
website (www.pnbindia.in), display in its offices and general announcements from time to time and
shall not communicate separately to the borrower.
16. i. Reset of Interest Rate under External Benchmarks

The rate of interest under external benchmark (RBI Repo Rate/ 3 Month or 6 month T-Bill rate
published by FBIL/any other market interest rate published by FBIL) shall be reviewed at least
once in three months.
ii. Reset of Interest Rate in loans Linked to RLLR
a. For all loans linked with Repo Linked Lending Rate in case of change in Repo Rate by RBI,
the RLLR will be changed from the next working day unless otherwise specified.
b. The Spread component (excluding Credit Risk Premium- CRP) linked with RLLR for all
floating rate personal or Retail loans (housing, auto etc.) and floating rate loans to Micro
Small and Medium Enterprise shall be reset every 3 years from the date of opening of the
account.
c. Credit risk premium may undergo change only when borrower’s credit assessment
undergoes a substantial change, as agreed upon in the loan contract.
d. Switchover from RLLR to MCLR will not be permitted in schemes/category which have been
linked with RLLR mandatorily by RBI.
iii. Reset of Interest Rate in loans Linked to MCLR
a. The MCLR rates shall be reviewed on monthly basis which will be applicable to all new loans and
credit facilities sanctioned/renewed from the 1st of the following month.
b. MCLR prevailing on the date of first disbursement, whether partial or full, shall be applicable till
the next reset date irrespective of the changes in the benchmark during the interim on the
floating rate loan and future reset dates shall be determined accordingly.
c. All MCLR based floating rate loans shall be linked with maximum 1 year MCLR and the reset
period shall also correspond to the tenor/maturity of the MCLR to which the loan is linked. (i.e.
advances linked with 1 year MCLR shall have 1 year reset & advances linked with 3 month
MCLR shall be linked with 3 month
reset)
d. Reset of spread based on the change of the risk profile of the borrower (upward or downward
revision in risk rating) shall be done as and when there is revision in risk rating of the borrower,
unless specifically mentioned in the sanction for continuation of concessional spread by
competent authority.
e. The bank may review the reset clause as and when required.
17. The disbursal of credit facility is solely at the discretion of the Bank.
18. The bank may:
a. disallow facility, keeping in view bank’s exigencies including any adverse information about
the borrower that might have a direct bearing on the advances lent by Bank.
b. disallow drawing beyond the sanctioned limits.
c. dishonour/ return cheques issued for the purpose other than specifically stated in the credit
sanction or in this agreement.
d. disallow drawing in the account on its classification as a non-performing asset or on account
of non-compliance with the terms of sanction or this agreement
19. The bank does not have an obligation to meet further requirements of the borrowers on account of
growth in business, etc. without proper review of credit limits.
20. Bank will have an unqualified right to pass on to the Credit Reference Agencies the details of his
loan account in such manner and through such medium as the bank in their absolute discretion may
think fit.
21. The borrower/guarantor shall inform the bank about any change in their office/residential address to
bank at the earliest possible. This information of changed office/residential address with telephone

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

no. (landline/mobile) be provided to the bank within 30 days along with residential proof as required
under KYC norms.
22. Sanctions in respect of Working Capital and Term Loan facilities shall be valid for 6 months from the
date of sanction. Facilities not availed within the above period shall be treated as lapsed. Where
documents have been executed within a period of 6 months from the date of sanction, the sanctions
shall be valid for next 6 months from the date of documentation.
23. Borrower eligible for ERR shall invariably give consent to External Credit Assessment Institutions
(ECAIs) for disclosing the lenders’ details i.e. name of the banks and the corresponding credit
facilities rated by the ECAIs in the Press Releases.
24. Borrower shall collect the original movable / immovable property documents within 15 days of full
repayment / settlement of the loan account from the branch where the loan account was serviced or
branch/office of the bank where the documents are available.
25. The borrower will ensure compliance with all the principles related to Green/ Social Finance
as listed in Bank’s latest Financing Framework for Green/ Social/ Sustainability Linked
Activities.
26. The borrower will provide additional details for determination of impact and to facilitate
assurance of the financing activity.
To be ensured by the Branches:
1. It shall be ensured before release of limits that the Borrower executes documents and charge
creation on primary and collateral security which is valid and legally enforceable. In case of
Company it is necessary that the company has necessary borrowing powers and Board /
Shareholders have passed necessary resolutions required as per the provisions of Company Act
and Memorandum & Article of Association of the company
2. In case the Company commits default in the repayment of loan /advance or in the payment of
interest thereon or any of the agreed instalments of the loan on due date, the bank, CICs and / or
Reserve Bank of India will have an unqualified right to disclose or publish the names of the
company and its directors as defaulters in such manner and through such medium as the
bank/RBI in their absolute discretion may think fit. Documents to be obtained from the company /
directors to this effect and kept on record in terms of guidelines issued by SASTRA Division on
wilful defaulters.
3. Branch to ensure compliance of Pre-Disbursement Terms & Conditions of Sanction and to timely
point out deficiencies (if any) in compliance of Pre-Disbursement Terms & Conditions of Sanction
for taking corrective actions before disbursement.
4. TERM LOAN
To be complied with by the Borrower:
1. Security: Term loans shall be secured by mortgage of block assets comprising land, building,
plant and machinery, both present and future, unless otherwise stipulated in the sanction.
Whenever the sanction so provides, pari passu charge with other financial institutions or
second/subsequent charge may be accepted.
2. Insurance: The borrower shall get the above assets insured against all risks at their own cost
with usual bank clause. A copy of the insurance policy will be kept on bank's records also.
3. Disbursement:
a. The payments shall preferably be made directly to machinery suppliers, contractors, etc.
Self-Certified copies of bills / cash memos in the name of the Borrower for all the fixed
assets / machinery financed by bank shall be submitted by the borrower and placed on
bank’s record. TL will be released in stages as per physical progress of the project.
b. In case of limited liability companies, charge under Section 77 of the Companies Act 2013
shall be registered with the Registrar of Companies within 30 days from the date of creation
of charge by filing the prescribed `forms' within the period as may be prescribed from time to
time.
c. Borrowers’ / Lenders’ Engineers should submit Quarterly Implementation schedule which
should match with the appraisal note and Quarterly Progress Report be submitted to keep

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

apprise the Bank with the progress of the project and to satisfy the bank’s officials about end
use of funds and timely implementation of the project within the approval.
d. The progress in implementation of the project will be monitored/ reviewed by the Bank on
quarterly basis and necessary corrective steps will be got initiated, if required, from time to
time specially in case of time and cost run-overs. The borrower shall facilitate the bank for
compliance of the above.
e. Reimbursement against the expenditure already incurred to be allowed subject to specific
sanction of the competent authority, verification of end use and submission of all original bills
by the borrower.
4. Repayment default: Penal charges @ 2% of the amount in default for the period of default shall
be levied.
5. Bank's name plate, evidencing hypothecation of security / asset to be prominently, displayed
where the securities charged to the bank are kept.
6. Escalations: The borrower shall meet such costs, if any, from its own sources and shall not ask
for any additional term loan from the bank.
7. Bank Term Loan shall be released only after the funds for the project are fully tied up.
8. The promoters shall bring in their entire contribution before release of our Term Loan or in the
manner otherwise provided in the sanction.
9. The unsecured loans shall be subordinated to our Term Loan.
10. Before disbursement of Term Loan, it shall be ensured that all necessary statutory and other
approvals/permissions including from Pollution Control Board, have been obtained by the
company.
11. Borrower to undertake to meet any cost over run in the project (irrespective of reasons) from its
own long term sources.
To be ensured by the Branches:
1. Before actually disbursing the loan, the Branch must satisfy that the borrowing concern has
contributed sufficient capital to provide the required margin for the loan. Further, it shall also be
ensured that margin stipulated is maintained / provided at each stage of disbursement.
2. To ensure end-use of funds and to keep apprise the Bank with the progress of the project, a
Quarterly Progress Report to be obtained from the borrowers’ / Lenders’ Engineers (as per
extant guidelines).
3. The report relating to insurance of securities PNBRPT 3 / 2 can be generated and monitored on
day-to-day basis. It shall be ensured that the policies are renewed at an appropriate time.
NOTE:
This sanction is as per the MSME DIV Cir 55/2023 under MSME Prime Plus and the terms and
conditions stipulated above for compliance at BO/CMC level.
BO/CMC to go through this sanction and if any discrepancy is observed then bring it in to the
notice of sanctioning authority.
In case of account is being taken over by the other bank/FI, in addition to levying prepayment
charges, all the concession/relaxation/waiver in the service charge, ROI etc. granted since last
sanction/review/renewal of the facility or sanction accepted by the borrower with such clause,
whichever is earlier, in the account shall be withdrawn and respective amount shall be
recovered from the borrower.
Borrower shall give acceptance of terms & conditions as per letter of sanction which will form
part of documentation and be placed on bank records.

Regards

Sher Singh
Chief Manager

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 RAM PLP Centre, Behind PO Khaliyar,
Joginder Nagar Road, Khaliyar, Mandi
Email: ram6797@pnb.co.in

 Fresh Term Loan of ₹225.00 Lacs in name of M/S Mount Brook

Segment Head MSM

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