||Micro & Small Enterprises in rural, semi urban, urban and metro branches
|Type of Loan
||Composite Loan in the Form of Demand/Term Loan
||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
|Rate of Interest
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).
||I-Concession of 0.50%
in ROI on account of
cover has already been
II-No other concession
including those meant
for Priyadarshini, SME
rating etc., will be
extended under the
III-No further account
specific concession to
||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.
No collateral security/third party guarantee to be obtained.
- 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.
|Above Rs.1,00,000/- upto Rs.5,00,000/-
|Above Rs.5,00,000/- upto Rs.10,00,000/-
|Above Rs.10,00,000/- upto Rs.50,00,000/-
|Above Rs.50,00,000/- upto Rs.100,00,000/-
- 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.
- 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.
||The scheme will be implemented directly by the Bank. No outside agency whether Government or otherwise will be involved in the implementation
||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.