2. What is industrial loan?
• Any type of loan made to a business or
corporation and not to an individual.
Commercial and industrial loans can be
made in order to provide either working
capital or to finance major capital
expenditures. This type of loan is usually
short-term in nature and is almost always
backed with some sort of collateral.
Commercial loans usually charge flexible
rates of interest
3. What is MSME loan?
• In accordance with the provision of
Micro, Small & Medium Enterprises
Development (MSMED) Act, 2006 the
Micro, Small and Medium Enterprises
(MSME) are classified in two Classes:
• (a) Manufacturing Enterprises
• (b) Service Enterprises
4. Manufacturing Sector (Investment in plant &
Micro Enterprises- Does not exceed
twenty five lakh rupees
Small Enterprises- Twenty five lakh
rupees to Five crore rupees
Medium Enterprises-Five crore rupees
to Ten crore rupees
5. Service Sector ( Investment in equipments)
Micro Enterprises-Does not exceed ten lakh
Small Enterprises-Ten lakh rupees to Two
Medium Enterprises- Two crore rupees to
Five core rupees
7. Facilities for MSME borrower
1. Laghu Udyami Samekit Loan
2. SME Liquid Plus
3. SME Auto Express
4. SME Contractor Credit Line
5. SME Education Plus
6. MSE Term/Demand Loan
8. MSE Term/Demand Loan
• Micro & Small Enterprises in
rural, semi urban, urban and
• Purchase Plant &
• The scheme will be implemented
directly by the Bank. No outside
agency whether Government or
otherwise will be involved in the
9. MSE Term/Demand Loan
(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/-
10. MSE Term/Demand Loan
(Rate of Interest)
Note: 1-Term Loans under the scheme will not attract term
Premium as approved by ED/26.07.2010
2- ROI is linked to Base Rate (Floating).
Upto Rs.50,000/- 10.20%
1. I-Concession of 0.50% in ROI on account of CGTMSE Guarantee cover has already
2. No other concession including those meant for Priyadarshini, SME rating etc., will be
extended under the scheme.
3. No further account specific concession to be considered.
11. MSE Term/Demand Loan
• 1. Hypothecation of Assets created out of
bank finance as well as existing
unencumbered assets of the MSE unit.
2. Equitable Mortgage of Land/ Land &
Building which is part of the business
activity such as business premises.
3. Guarantee Cover under CGTMSE
• No collateral security/third party
guarantee to be obtained.
13. MSE Term/Demand Loan
1. Proof of identity – Voter’s ID Card/Passport/Driving
License/PAN Card/signature identification from present
bankers of proprietor, partner or Director (if a
2. Proof of residency – Recent telephone bills, electricity
bill property tax receipt/voter’s ID Card of proprietor,
partner or Director (if a company)
3. Proof of business address.
4. Last three years balance sheets of the units along with
income tax/sales tax returns etc.
5. Memorandum and articles of Association of the
Company/Partnership Deed of partners etc.
14. MSE Term/Demand Loan
6) Assets and liabilities statement of promoters
and guarantors along with latest income tax
7) Project report (for the proposed project if term
funding is required) containing details of the
machinery to be acquired, from whom to be
acquired, price, names of suppliers, financial
details like capacity of machines, capacity
utilization assumed, production, sales,
15. MSE Term/Demand Loan
(Processing and Repayment)
• Simplified Application cum 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.
• 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.