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Target group

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

Purpose

Purchase Plant & Machinery/Equipment/Other Moveable Assets.

 

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/-

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.