Base Rate

Base Rate


Small & medium enterprises strategic business unit

All the interest rates are linked to Base Rate (floating) which is 9.70% w.e.f. 05.10.2015. Please note that irrespective of the category of the borrower (i.e. micro, small, medium and others) the rate of interest will be as per the limit proposed and credit rating assigned. The applicable rating models are:

Sr No Limits (Rs.) Applicable rating Model
Presently in force
From To
1 1 < 10 Lakh No rating
2 10 Lakh < 5 Crore SBS
3 5 Crore <30 Crore MS
4 30 Crore and above   HLC

Please also note importantly that ‘Tenor Premium’ is to be added to the interest rates for all term loans with limits of above Rs.10 lakhs with repayment period exceeding 1 year (door to door).

Regulatory MSME ( As per MSMED Act 2006) will include the followings:

MSME Definition
Criteria : Investment and Annual Turnover
Classification Micro Small Medium
Manufacturing & Services Investment < Rs 1 crore & Turnover < Rs. 5 crores Investment < Rs 10 crores & Turnover < Rs. 50 crores Investment < Rs 50 crores & Turnover < Rs. 250 crores