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MSME

Target group

 

Micro & Small Enterprises in rural, semi urban, urban and metro branches

Type of Loan

 

Composite Loan in the Form of Demand/Term Loan

Purpose

 

Investment and working capital requirements. This product will be offered to those Micro & Small Enterprises who require both working capital and term/demand loan.

 

Quantum of Loan

 
For units located in Maximum Amt of Loan
Rural Areas Rs.5,00,000/-
Semi-urban Areas Rs.10,00,000/-
Urban Areas Rs.50,00,000/-
Metro Areas Rs.100,00,000/-
 

Margin

 

15%

Rate of Interest

 

Note:

I-Term Loans under the scheme will not attract term Premium as approved by ED/26.07.2010 II-ROI is linked to Base Rate (Floating).

 
Limit RoI Remarks
Upto Rs.50,000/- 10.20% I-Concession of 0.50% 
in ROI on account of
CGTMSE Guarantee
cover has already been 
factored. 
II-No other concession
including those meant
for Priyadarshini, SME
rating etc., will be
extended under the
scheme.
III-No further account
specific concession to
be considered.
Above Rs.50,000/-
upto Rs.5,00,000/-
11.20%
Above Rs.5,00,000/- 
upto Rs.10,00,000/-
12.20%
Above Rs.10,00,000/- 
upto Rs.100,00,000/-
12.95%
 

Repayment

 

Loan is to be repaid in maximum 5 years with a moratorium of 3 to 6 months to be determined on the merits of each case.

 

Security

 
  • Hypothecation of Assets created out of bank finance as well as existing unencumbered assets of the MSE unit.
  • Equitable Mortgage of Land/ Land & Building which is part of the business activity such as business premises.
  • Guarantee Cover under CGTMSE Guarantee Scheme.

No collateral security/third party guarantee to be obtained.

Processing Charges

 
Limit Processing Charges
Upto Rs.1,00,000/- Rs.500/-
Above Rs.1,00,000/- upto Rs.5,00,000/- Rs.1,000/-
Above Rs.5,00,000/- upto Rs.10,00,000/- Rs.1,500/-
Above Rs.10,00,000/- upto Rs.50,00,000/- Rs.5,000/-
Above Rs.50,00,000/- upto Rs.100,00,000/- Rs.10,000/-

Documentation

 
  • Demand Promissory Note.
  • Deed of Hypothecation CHA 1/CHA 2 as the case may be..
  • Installment Letter.
  • Documents for fulfillment of KYC norms.
  • Other connected documents applicable for Demand Loans as per extant guidelines.
  • Equitable Mortgage as Primary Security wherever applicable.

Processing

 
  • Simplified Application and Proposal Forms given in the annexure to be used.
  • Turnaround time for sanction of limits upto Rs.5 lacs will be 5 working days and for limits above Rs.5 lacs, 7 working days after all relevant information is obtained.

Implementing Agency

 

The scheme will be implemented directly by the Bank. No outside agency whether Government or otherwise will be involved in the implementation

Classification

 

Advance under this scheme will be classified MSME advance with Sector Code 32, Scheme Code 209 and Special Category Code from 150 to 173 depending upon the original cost of investment in plant & machinery/ equipment. BSR Code will depend upon the activity.