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  Home » Loan Schemes » Non Agricultural Loans » MSME Sector Loans

MSME Sector Loans


     

1.  SMALL and MEDIUM ENTERPRISES (SSI):                     

  • Bank  will extend composite loans to SME Entrepreneurs through a ‘Single Window’  System at competitive rate of interest.               
  • Loans  up to Rs.50 Lakh are allowed without Collateral Security and/or Third Party  Guarantee, but with coverage under CREDIT GUARANTEE FUND TRUST FOR MICRO AND  SMALL ENTERPRISES (CGTMSE).             
  • Loans  to MICRO ENTERPRISES, SMALL BUSINESS and ROAD TRANSPORT OPERATORS also allowed  without Collateral Security and or Third Party Guarantee (subject to  conditions).  

2. SMALL ROAD & WATER TRANSPORT OPERATORS:        

ELIGIBILITY: Small Road and  Water Transport Operators owning a fleet of vehicles, not exceeding TEN  vehicles, including the one proposed to be financed. Only new vehicles will be  financed.         

Repayment: 36  to 84 Equated Monthly Installments depending upon the 
              repaying  capacity of the borrowers.          

3. RETAIL TRADERS:         

ELIGIBILITY: Retail  Traders dealing in essential commodities (fair price shops) and consumer  co-operative stores and other private retail traders with credit limits not  exceeding Rs.10.00 lakhs.           

Purpose: For  acquiring premises or furniture / show cases and office 
              equipment  and for working capital requirements.        

Eligible Persons: Individuals  / partnership firms, Consumer Co-operative 
              Stores  engaged primarily in buying and selling of goods.         

Repayment:  36 to 48 Equated Monthly Installments  depending upon the 
              repaying  capacity of the borrowers.          

4. SMALL BUSINESS:         

Small  Business would include individuals and firms managing a business enterprises  established mainly for the purpose of providing any service other than  professional services whose original cost price of the equipment used for the  purpose of business does not exceed Rs.20.00 lakhs without any restriction on  working capital limit.         

Purpose: Credit  facilities granted for purchasing of necessary equipment,
              repairing  or renovating the existing equipment, acquiring or repairing the
              premises,  purchasing tools and for working capital requirements.         

Eligible Persons: Individuals  / partnership firms providing any kind of
              services  other than professional services. Eg. Hotels, cycle & taxi, Tea
              Stall,  Photostat, PCO, Pickle making, Hair cutting Saloons, Mike Set, Kite
              Making  etc. Dealers in mineral oils.          

Repayment:  36 to 48 Equated Monthly Installments  depending upon the
              repaying  capacity of the borrowers.           

5. PROFESSIONAL AND SELF-EMPLOYED PERSONS:         

Loans  to professional and self-employed persons include loans for the purpose of  purchasing equipment, repairing or renovating existing equipment and /or  acquiring and repairing business premises or for purchasing tools and/or  working capital requirements to medical practitioners including dentists,  Chartered Accountants, The under noted specific categories of advances will also  be eligible for classification under this item.                   

  • Credits for the purpose of purchasing equipment,  acquisition of premises and tools, vehicle etc. to practicing company  secretaries who are not in the regular employment of any employer.             
  • Financial Assistance for running “Health Centre” by an  individual who is not a doctor, but has received some formal training about the  use of various instruments of physical exercises.             
  • Advances for setting up beauty parlours where the borrower  holds qualification in the particular profession and undertakes the activity as  the sole means of living/earning his/her livelihood.                 

Preference  may be given by banks to financing professionals like doctors, etc., who are  carrying on their profession in rural or semi-urban areas. The term also  includes firms and joint ventures of such professionals and semi-employed  persons. This category will include all advances granted by the bank under  special schemes, if any, introduced for the purpose.           

              Only  such professional and self-employed persons whose borrowings (limits) do not  exceed Rs.10.00 lakhs of which not more than Rs.2.00 lakh should be for working  capital requirements should be covered under this category i.e., professional  and self-employed persons. However, Within the above mentioned ceilings an  advance granted to a qualified medical practitioner for purchase of one motor  vehicle may also be reckoned under the priority sector lendings. Advances  granted for purchase of a motor vehicle to professional and self-employed  persons other than qualified medical practitioners will, however, not be  included under the priority sector.         

Purpose:
  a)    Purchase/repair/renovation of equipment, purchase of tools.
  b)    Acquiring/repair/renovation of premises.
  c)    To meet working capital requirements.        

Eligible Persons: Doctors,  Lawyers, Chartered Accountants, Engineers, Architects, Tax Consultants,  Magicians and Researchers are eligible for finance in the form of Individual  capacity or as partnership firm.         

Surveyors,  Construction contractors or Management consultants or to a person trained in  any other art or craft who holds either a degree or diploma from any  institution established, aided or recognised by Government or  to a person who is considered by the bank as  technically qualified or skilled in the field in which he is employed are also  eligible for the loan.         

Loan amount: Rs.10.00 Lakh  including Working Capital Limit not more than Rs.2.00 lakh will be financed. In  the case of professionally qualified medical practitioners setting up practice  in Semi-urban and rural areas, the loan up to Rs.15.00 lakhs (including for  purchase of CAR) of which not more than Rs.3.00 lakhs for working capital  purposes will be financed.        

Repayment: 36  to 72 Equated Monthly Installments with a gestation period not exceeding 3  months.


           

 

         

 

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