Target group


Proprietorship / Partnership firms, Limited Companies falling within the new definition of SME, engaged in the business for the past 3 years with audited financial statement of accounts


  • The borrower should have known source of funds to pay for the margin and initial recurring expenses.
  • Should be profit making for the last 2 years
  • Entry level credit rating SBS 5. No deviation to be permitted.



General purpose term loan for SME constituents Viz., for R & D activity, marketing and advertisement expenses Purchase of machineries / equipments, Preliminary expenses etc.

Nature of facility


Term Loan.

The safety of this advance will substantially depend on cash flow arising out of activity being financed. It should be ensured that the profits generated / anticipated to be generated turns into liquid cash to service the loan.

Quantum of Loan


Minimum Rs.10 lacs and Maximum Rs.500 lacs



To be repaid in 84 installments within a period of 7 years inclusive of moratorium period of up to 12 months. Interest to be serviced as and when debited.


Appraisal of loan


50% of unencumbered value of the property under offer or 75% of actual requirement for the stated purpose which ever is less Minimum : Rs.10 lacs Maximum : Rs.500 lacs.

Note : Extant guidelines with regard to valuation of property, title clearance and inspection by two different officials etc., must be strictly adhered to.

Average DSCR should be minimum 1.25.




As stated above


Rate of Interest


As per prevailing rate of interest structure in terms of HOBC:104/94 dt. 15-11-2010.


Processing Fee, Documentation charges etc

For accounts falling within regulatory definition of MSME : In terms of HOBC : 102/218 dt. 20-03-2009.
For accounts not falling within regulatory definition of MSME but within the new definition of SME : In terms of HOBC: 102/119 dt.19-09-2008.