MSME Products

SL

Parameter

Features

1

Purpose

To provide Fund Based Facility in the form of Overdraft and Term Loan and Non-Fund Based Facility in the form of Letter of Credit and Bank Guarantee to Contractors/Sub-Contractors for their business needs

2

Eligibility

·  Registered Contractors falling within definition of MSME and undertaking works on behalf of Government/PWD/PSU and Reputed Corporates

· Sub-Contractors provided subletting is permitted in Original Contract

· Sub-Contractor should be A/B/C/D Class Contractor or Any other

 category acceptable to State Government

· Udyam Registration Certificate

·  GST Registration

3

Credit Score

· Minimum Consumer CIBIL: 650

· Minimum CIBIL MSME Rank (CMR): CMR-6

· If Score/Rank not available, it would not apply

4

Loan Quantum

· Minimum: Above Rs. 10 Lacs · Maximum: Rs. 10 Crores

5

Credit Facilities

6

Constitution

Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Joint Venture, Private/Public Limited Company

7

Margin

·  Term Loan: Minimum 25% (Minimum 20% for Transport Vehicle)

·  Bank Guarantee: Minimum 15%

·  100% Cash Margin for BG against disputed liabilities

8

Security

PRIMARY

· Hypothecation on entire Current Assets and Non-Current Assets

COLLATERAL

· SARFAESI compliant security having realisable value 100% of limit sanctioned (FB + NFB)

· Liquid Collateral having value 91% of limit sanctioned

· Loan may be covered under “Hybrid Security” model of CGTMSE

9

Interest Rate

· RoI where Collateral Security is minimum 100% or Liquid Collateral is minimum 91% of Sanctioned Limit

UCO Float Rate (9.30%) + 0.50% = 9.80% at present

· RoI under Hybrid Model of CGTMSE

UCO Float Rate (9.30%) + 1.00% = 10.30% at present

· Strategic Business Discount up to 0.50% is allowed

10

Other Features

· Stock Statement not required

· Self-certified Book Debt Statement required on quarterly basis

· Existing borrowers eligible for switchover

· No External Credit Rating required

UCO GST Mitra

Sl No

Parameters

Details

1

Purpose/ Constitution

·  To fund Working Capital requirements to GST  registered MSME customers (New/Existing) by way of fund  based exposure

·  Individual/Joint/Proprietorship Firm/Partnership Firm/Pvt Ltd Co/Limited Co/Trust/Others

2

Activity Eligible for Finance

·  All MSME activities including Retail and Wholesale Trade other than those specifically prohibited/restricted in Bank's Loan Policy Document

3

Eligibility

Existing MSME enterprises engaged in business for at least  2 years and earning profit during the last 2 years

MSME unit should have Udyam Registration Certificate

MSME unit should be GST registered unit which has filed   GST returns for at least last 6 (Six) months

MSME unit should not be availing any Cash Credit facility  from any Bank/Financial Institution

4

Quantum of Limit

· Above ₹10 Lacs and up to ₹100 Lacs  in the form of Cash Credit  

5

Security

Primary - Hypothecation of Stocks and Book Debts along with entire Current Assets and Non-current Assets (Present  and  Future)

Collateral - Minimum 100% SARFAESI enabled Immovable Property or 75% Bank approved liquid security or Minimum 50% SARFAESI  enabled  Immovable  Property  and remaining exposure shall be covered under CGTMSE Hybrid Model

6

Guarantee

 · Property Owners(s)/Directors/Partners

7

Margin

 ·20% of stock and 50% of Book Debts (Not exceeding  90 Days) for  DP calculation on quarterly basis

8

Stock Statement

· Borrower to submit Stock/Book Debts Statement Quarterly  in Bank’s prescribed format

9

Rate of Interest

·Up to ₹100 Lacs ~ UCO Float ( 9. 30%) + 1.55 % i.e. 10.85%

10

Rating

·Minimum internal rating should be UCO 5 for limit above   Rs.50 Lacs in case of CGTMSE covered Account

11

Computation of CC

Limit

Maximum 30% of Sales reported in the GST Returns for the  last one year (12 months)

Wherever GST returns have been filed for less than one year, CC limit shall be  arrived based on 30% of annual sales after annualizing GST returns filed for that  period provided customer has filed GST returns for minimum 6  months

 No Cash Credit will be sanctioned against Book Debts only

• All applications for a credit limit or enhancement in existing credit limit up to Rs.5 Lacs within two weeks;
• For credit limit above Rs.5 Lacs and up to Rs.25 Lacs within 3 weeks; and
• For credit limit above Rs.25 Lacs within 6 weeks from the date of receipt, provided the application is complete in all respects and is accompanied by all documents as per check list.

• For both New and Existing business unit under MSE – Small Business including Retail Trade
• Provision of guarantee coverage by CGTMSE as per CGTMSE guidelines
• FB+NFB Credit facility : Rs. 1.00 Lakh and up to Rs. 100.00 Lakh per MSE borrower
• Need based Ad-Hoc facilities is also sanctioned.
• Repayment tenure of Cash Credit/Term Loan to be decided keeping in view the availability of guarantee coverage under CGTMSE/CGFMU/CGSSI on case to case basis
• No collateral security is insisted
• The loan exposure may be covered under “Hybrid Security” product of CGTMSE
• Where the borrower offers 100% collateral security to cover the loan amount then CGTMSE coverage may be waived off
• Processing Charges: Up to Rs. 5 Lakh- NIL

Category

Stipulated Credit limits

SHISHU

Loans sanctioned under the scheme up to Rs.50000

KISHORE

Loans sanctioned under the scheme from  Rs.50001 to Rs.5.00 lacs

TARUN

Loans sanctioned under the scheme from Rs.5,00,001 to Rs.10.00 lacs

  PMEGP

Sl No

Particulars

Details

1

Purpose/

Constitution of Borrower

· To generate employment in Rural as well as in Urban area of the country through setting up new self-employment ventures/projects/micro enterprises

· Cash Credit and Term Loan

· Individual

2

Quantum of Loan

v   Maximum Project Cost (1^st Loan)

· Business/Service Sector/Trading: ₹20 Lacs

· Manufacturing Sector: ₹50 Lacs

Maximum Project Cost (2^nd  Loan)

· Business/Service Sector/Trading: ₹25 Lacs

· Manufacturing Sector: ₹100 Lacs

3

Eligibility

· Any individual, above 18 years of age

· There will be no income ceiling for assistance for setting up projects under PMEGP

· Aadhaar is mandatory

4

Margin on Term Loan/

Stock and Book Debts

· 75% of the cost of acquisition/creation of fixed assets in case of Term Loan

· Margin of 20% of Stock and Book Debts should be maintained while calculating drawing power

· Book Debts statement to be obtained on quarterly basis (Book Debts up to 90 days allowed)

· Only 50% of the sanctioned limit should be allowed to be availed against Book Debts not exceeding 90 days

5

Security

· Primary: Hypothecation of entire current and non-current Assets/Fixed Asset/Vehicle/Machinery

· No collateral up to ₹10 Lacs (CGFMU/CGTMSE guarantee coverage is mandatory)

· Collateral: SARFAESI Compliant security 100% (FB+NFB) Or value of 91% of the limit sanctioned (FDRs/LIC Policy/KVPs/NSCs). Property may include non-agricultural plot which is well boundaried, demarcated (should not be land locked and must have approachable road). Loan can be covered under Hybrid product of CGTMSE (Maximum up to ₹100 Lacs)

6

Guarantee

· Immovable property, to be mortgaged, may be in the name of Individual Borrower or any third party who should stand as a guarantor

7

Beneficiary contribution and  Margin Money Subsidy

· General: 10 %  (In case of 1st Loan) and 10 % (In case of 2^nd Loan)

· Special Category (Including SC, ST, OBC, Minorities, Women, Ex-servicemen, Transgender, Differently abled, NER, Aspirational Districts, Hill and Border Areas (As notified by the Government)]: 5 %  (In case of 1^st Loan) and 10% (In case of 2^nd  Loan)

· Margin Money (Subsidy): 15% to 35% ; Lock in Period: 3 Years

· Margin money shall be adjusted by Bank after getting adjustment letter from Implementing Agency

· Project cost above ₹50 Lacs (1st Loan) and ₹100 Lacs (2^nd Loan) can be sanctioned by Bank without subsidy

8

Rate of Interest (RoI)

· Up to ₹50000: UCO Float + 0.55% i.e. 9.30% + 0.55% = 9.85%

· Above ₹50000 and up to ₹10 Lacs: UCO Float + 1.10% i.e. 9.30% + 1.10% = 10.40%

· Above ₹10 Lacs: UCO Float + 0.70% i.e. 9.30% + 0.70% = 10.00%

· Concession by ZLCC: Up to 0.50%;  Beyond that 0.25% by HLCAC-II

9

Computation of Limit

·  Limit will be calculated on 25%/30% of Projected Turnover

·  Limit covered under CGTMSE

10

Deviation

Any deviation except margin and quantum of loan other than those which are not specifically mentioned in this scheme shall be under the delegation of  HLCAC-II

Sl No

Parameters

Features

1

Purpose

To provide Fund Based Facility in the form of Overdraft and Term Loan and Non-Fund Based Facility in the form of Letter of Credit and Bank Guarantee to the existing as well as prospective borrowers including New/Greenfield unit for their business needs.

Term Loan facility can be sanctioned for any general/business purpose except speculative purpose.

2

Eligibility

All entities undertaking business activity and falling within the definition of MSME as per MSMED Act, 2006 and as amended from time to time

·  Non-Salaried Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Joint Venture, Private/Public Limited Company (HUF/Trust as Proprietor/Partner/Promoter is not eligible under the scheme)

·  Entity should have Udyam Registration Certificate and GST Registration

·  Business enterprises should comply with applicable statutory requirements such as License under Shops and Commercial Establishment Act, Trade License/Other necessary license to run the unit, as the case may be

3

Credit Score

For Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR), relevant applicable guidelines as contained in MSME Department Circular No. CHO/MSME/26/2023-24 dated 28/09/2023 to be adhered

Any subsequent amendment made in Consumer CIBIL Score/Commercial CIBIL MSME Rank guidelines for MSME loans by Head Office, MSME Department or Head Office, Risk Management Department will automatically be applicable for loans sanctioned under this scheme.

4

Loan Quantum

· Minimum: Above ₹10 Lacs

· Maximum: ₹1500 Lacs

·  Limit beyond ₹1,500 Lacs will be sanctioned by HLCC-GM and above committee within their  delegated lending power as per scheme guidelines.

5

Credit Facility

6

Margin

·  Overdraft (General/Reducing Balance):

·  Term Loan: Separate Margin need not required to be brought by the customer as margin is already taken care under LTV.

·  Letter of Credit/Bank Guarantee: Minimum Cash Margin 25% (Relaxable up to 15% by ZLCC)

7

Security

PRIMARY

· Hypothecation on entire Current Assets and Non-Current Assets Equipment/Plant and Machinery, etc created out of Bank finance

COLLATERAL

SARFAESI compliant security having Loan To value (LTV)

a) 65% in case of Residential Property offered as security

b) 60% in case of Commercial/Industrial/Factory Premises/Mixed Property offered as security

8

Interest Rate

·  Rate of Interest (RoI) is linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower which vary from UCO Float Rate (For customer having Consumer CIBIL Score of >750 and CMR-1) to UCO Float Rate + 1.50% (For customer having Commercial CIBIL MSME Rank of CMR-6)

· Strategic Business Discount up to 0.75% can be allowed by ZLCC

·  Maximum concession up to 1.25% can be allowed by appropriate committee at Head Office (HLCC - GM/ HLCC - ED)

9

Repayment Period

Overdraft General

 1 Year (To be renewed annually)

Overdraft Reducing Balance/Term Loan

Minimum: 84 Months; Maximum: 180 Months

10

Other Features

· Stock Statement not required

· Existing borrowers eligible to switchover, if feasible

· No External Credit Rating required

·  Leased property can be accepted as security

·  Facility can be sanctioned to Relative of Bank Staff

STP Shishu Mudra

Sl No

Parameter

Details

1

Purpose/

Constitution

·  Need based working Capital Term loan to eligible individual Shishu Mudra customers for meeting working capital requirements

·  Micro enterprises (MSME)

2

Age

18 years to 60 years

3

Eligibility

Micro enterprises (MSME) - Individual (Existing Customer having at least 1 year relationship with our Bank)

4

Quantum of Limit

Up to Rs.50000

5

CIBIL Score

Minimum CIBIL Score: 650 (0 or -1 not eligible)

6

Security

·  Primary: Charge on the stock and receivables

·  Collateral: Nil

·  To be covered under CGFMU

7

Guarantee

·  Nil

8

Margin

·  Nil

9

Rate of Interest

·  UCO Float + 0.55 % i.e. 9.30% + 0.55% = 9.85%

10

Repayment period

·  To be repaid in 36 monthly equated instalments (EMIs) without moratorium

·  Minimum 12 months and maximum 36 months

11

Documentation

·  Acceptance  of  the  Terms  and  Conditions  by  e-Signing  using Aadhaar based OTP

·  E-stamping executable documents by NeSL

12

Post Disbursement Inspection/

End use verification

· Branches to conduct post  disbursement  inspection  of  the unit  within  30 days of disbursement to ascertain end use of funds as per sanction terms

· Branch should advise corrective measure to customer during post disbursement inspection if purpose of loan is not adhered to. Further, recall notice and recovery action, if required, should be initiated as per extant guidelines

Sl No

Parameters

Salient Features

1

Purpose

The objectives of the Scheme are

To enable the recognition of artisans and craftspeople as Vishwakarma making them eligible to avail all the benefits under the Scheme.

To provide skill upgradation to hone their skills and make relevant and suitable training opportunities available to them.

To provide support for better and modern tools to enhance their capability, productivity and quality of products.

To provide the beneficiaries an easy access to collateral free credit and reduce the cost of credit by providing interest subvention.

To provide incentives for digital transaction to encourage the digital empowerment of Vishwakarmas.

To provide a platform for brand promotion and market linkages to help them access new opportunities for growth.

2

Target Customer

As per Government guidelines 18 trades are covered under 
PM Vishwakarma Scheme for providing benefits to the artisans and craftspeople engaged in the trade.

The trades are

Carpenter (Suthar), Boat Maker, Armourer, Blacksmith (Lohar), Hammer and Tool Kit Maker, Locksmith, Sculptor (Moortikar, Stone Carver), Stone Breaker, Goldsmith (Sunar), Potter (Kumhaar), Cobbler (Charmakar)/Shoesmith/Footwear Artisan, Masons (Raaj Mistri), Basket/Mat/Broom Maker/Coir Weaver, Doll and Toy Maker (Traditional), Barber (Naai), Garland Maker (Malakaar), Washerman (Dhobi), Tailor (Darzi), Fishing Net Maker.

3

Eligibility

An artisan or craftsperson working with hands and tools and engaged in one of the family-based traditional trades in the unorganized sector on self-employment basis shall be eligible for registration under PM Vishwakarma.

The beneficiary should be engaged in the trades concerned on the date of registration and should not have availed loans under similar credit-based schemes of Central Government or State Government for self-employment/business development, e.g. PMEGP, PM SVANidhi, Mudra in the past 5 years. However, the beneficiaries of MUDRA and PM SVANidhi who have repaid their loan will be eligible under PM Vishwakarma. This period of 5 years will be calculated from the date of sanction of the loan.

The registration and benefits under the Scheme shall be restricted to one member of the family. For availing benefits under the Scheme, a ‘family’ is defined as consisting of husband, wife and unmarried children.

A person in government service and their family members shall not be eligible under the Scheme.

4

Age Criteria

The minimum age of the beneficiary should be 18 years on the date of registration.

5

Nature of Facility

Term Loan

6

Loan Quantum

7

Margin

Nil

8

Security Coverage

Primary

Hypothecation on assets created out of Bank finance.

Collateral

Collateral security not required for this scheme.

9

Credit Score

Credit information report will be required for those who have a credit history for availing benefits under the credit component, so as to exclude any defaulter from again availing credit under the Scheme.

In case of a beneficiary not having a credit history, the Banks or Financial Institutions shall not exclude them from availing credit and they shall also not insist upon Credit Information Report.

There is no requirement of minimum CIBIL Score for loan under PM Vishwakarma Scheme.

10

Rate of Interest (RoI)

·  UCO Float Rate + 3.70% i.e. 9.30% + 3.70% = 13% p.a. at present.

·  Rate of interest chargeable for loans from beneficiaries will be fixed at 5%.

·  The interest subvention by the Government of India will be to an extent of 8%.

11

Validity of Scheme

PM Vishwakarma Scheme will be initially implemented for five years up to 2027-28.

12

Guarantee Coverage

Guarantee Fee shall not be debited to the beneficiary account.

13

Other Terms and Conditions

Training Stipend

Each beneficiary shall be eligible to receive a training stipend of ₹500 per day while undergoing the Basic and Advanced Training programs.

Training stipend will be credited to the beneficiaries’ Bank account through DBT mode after training completion and certification by Ministry of Skill Development and Entrepreneurship (MSDE).

Toolkit Incentive

&A toolkit incentive of ₹15,000 will be provided to the beneficiary after Skill Verification at the start of Basic Training. The incentive shall be disbursed to the beneficiaries through e-RUPI/e-Vouchers which can be utilized at designated centres to procure improved toolkits.

Incentives for Digital Transaction

The Scheme aims to digitally empower the beneficiaries by facilitating them to adopt digital transactions. An amount of ₹1 per eligible digital transaction (upto a maximum of 100 eligible transaction) monthly will be credited to the beneficiary’s Bank account in DBT mode through Aadhaar Payment Bridge System (APBS). Eligible transaction means a digital pay-out or receipt in the Bank account of the beneficiary.

Sl No

Parameters

Features

1

Purpose

To provide Fund Based Term Loan facility to MSME entrepreneurs engaged in business activity for purchasing equipment like Bulldozer, Construction Equipment, Dumper, Earth Moving Equipment, Excavator, etc having commercial utility

2

Eligibility

·  Enterprises engaged in business activity for minimum two years and falling within the definition of MSME as per MSMED Act, 2006 and as amended from time to time

·  Entity should have Udyam Registration Certificate and GST Registration, as applicable

·  Unit must be in business for minimum two years and should be profit making

3

Credit Score

· Minimum Consumer CIBIL Score: 650

· Minimum Commercial CIBIL MSME Rank (CMR): CMR-6

4

Loan Quantum

· Minimum: Above ₹10 Lacs

· Maximum: ₹1000 Lacs 

5

Credit Facility

6

Constitution

Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Joint Venture, Private/Public Limited Company

7

Margin

Minimum 15%  

8

Security

PRIMARY

Hypothecation on equipment purchased out of Bank finance

COLLATERAL

·  Limit above ₹10 Lacs and up to ₹500 Lacs may be covered under CGTMSE or “Hybrid Security” product of CGTMSE

·  Limit Above ₹500 Lacs, may be sanctioned against 50% of realisable value of SARFAESI enabled security/liquid Security (FDR, NSC, KVP and LIC)/combination of SARFAESI  enforceable property and liquid collaterals

9

Interest Rate

·  Attractive Rate of Interest (RoI) starting from 9.60% linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower

· ZLCC and above authority empowered to allow RoI concession on case to case basis on merits

10

Repayment Period  

Repayable in maximum 84 Equated Monthly Installments (EMI)

Sl No

Parameters

Features

1

Purpose

To provide financial assistance for purchasing new vehicle(s) (LCV/MCV/HCV) operating on electric energy/other than fossil fuel and eligible for registration as commercial vehicle.

2

Eligibility

Entity engaged in transportation business or any other business activity permitted under law of the land.

· Scheme shall be applicable to all customers. Classification of account under MSME, Agriculture and Retail shall be based on fulfillment of guidelines of respective segment.

· Unit must be in business for minimum two years, should be profit making.

· Existing facility availed by the customer shall not be under SMA-1/SMA-2/NPA category during last 12 months.

3

Constitution of Borrower

Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Joint Venture, Private/Public Limited Company, HUF, Society, Trust, Institution, Association.

4

Loan  Quantum, Sanctioning Authority and Lending Power

 Note

·   More than one vehicle can be financed to a single borrower by SME Hub/ZLCC and above committee.

5

Facility Type and
Loan Tenure

Term Loan

·  Loan repayable in 60 months (maximum) (ZLCC and above committee can allow up to 84 months) including Moratorium of 3 Months (Maximum), if allowed, in case of MCV/HCV or 1 Month (Maximum), if allowed, in case of LCV

·  Auto Repayment of Principal will be in Equal Monthly Installment.

·  Auto Repayment of Interest will be on as and when applied basis.

6

Margin

Minimum 15%  

7

Security

PRIMARY

Hypothecation on vehicle purchased out of Bank finance.

COLLATERAL

·  Limit above ₹10 Lacs and up to ₹500 Lacs may be covered under CGTMSE or “Hybrid Security” product of CGTMSE

·  Limit Above ₹500 Lacs, may be sanctioned against 50% of realisable value of SARFAESI enabled security/liquid Security (FDR, NSC, KVP and LIC)/combination of SARFAESI enforceable property and liquid collaterals.

·  ZLCC may relax up to maximum 20% on case to case basis on merits so that post allowing concession the value of security will be minimum 30% of the limit.

8

Interest Rate

·  Attractive Rate of Interest (RoI) starting from 9.50%*

* For loan up to ₹100 Lakh, RoI is linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower.

* For loan above ₹100 Lakh, RoI is linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower which is interlinked with Internal Credit Rating.

· ZLCC and above authority empowered to allow RoI concession on case to case basis on merits.

-Sl No

Parameters

Features

1

Purpose

To provide easy finance to eligible MSME borrowers for meeting operational expenses related to business and to promote digital payments among  URP (Udyam Registration Portal)/UAP (Udyam Assist Portal) and/or GST  (if applicable) registered MSME units.

2

Eligibility

· Existing units engaged in Trading (Retail/Wholesale Traders)/Services classified as MSME and registered on URP/UAP.

· New units registered in URP/UAP (mandatory) and/or GST (if applicable).

· New/Existing MSME units enjoying Working Capital limit in the nature of CC/OD above ₹1 Lac and up to ₹50 Lacs.

· Account shall not be SMA-1/SMA-2/NPA in last 12 months.

· The account should not be due for review/renewal at the time of issuance of Merchant Credit Card.

3

Nature of Facility and Limit

· Merchant Credit Card shall be issued as a sub-limit of original CC/OD facility.

· MCC limit will be 10% of the sanctioned Fund Based Working Capital limit (CC/OD) with minimum ₹10,000 and maximum ₹2,00,000. 

4

Sanctioning

Authority

Sanctioning authority will be the same who has sanctioned Fund Based Working Capital limit.

5

Margin

Merchant Credit Card (MCC) limit will be a sub-limit of Fund Based Working Capital limit (CC/OD), hence separate margin is not required to be brought by the borrower.

6

Rate of Interest (RoI)

Applicable RoI shall be same as that of the original Fund Based Working Capital (CC/OD) limit.

7

Security

Merchant Credit Card (MCC) limit will be a sub-limit of Fund Based Working Capital limit, hence there is no requirement of additional security.

8

Card Type

Rupay variant of NPCI.

9

Interchangeability

Interchangeability between Merchant Credit Card facility and original CC/OD limit is permitted within the maximum permissible limit defined under this scheme.

10

Documentation

The securities/documents to be created/executed for entire Fund Based Working Capital limit including proposed Merchant Credit Card facility.

11

Other Conditions

·  Merchant Credit Card usage will be restricted for select Merchant codes like Gambling, Jewellery, etc.

·  Transaction to be allowed within drawing power available in MCC

·  Cash withdrawal to be capped up to 25% of Merchant Credit Card limit subject to maximum monthly ceiling of ₹25,000 in order to promote digital payment.

·  Cash withdrawal is restricted for business use purpose only.

·  Merchant Credit Card transaction limit for PoS machine/online shall be 50% of MCC limit subject to ₹50,000 (maximum) per day to promote digital payment which may be reviewed periodically.

·  International transaction not to be allowed on MCC.

Sl No

Parameters

Features

1

Purpose

To finance for innovation, development or improvement of products or processes or services or if it is a scalable business model with a high potential of employment generation or wealth creation as per Startup India Scheme launched by Government of India and as amended from time to time.

2

Eligibility

· The Startup should be registered as MSME having valid Udyam Registration Certificate.

· The Startup must be registered with/recognized by DPIIT and certified as Startup as per Startup India Scheme launched by Government of India.

· An entity shall be considered as a Startup Up to a period of ten years from the date of incorporation/registration.

· Turnover of the entity for any of the financial years since incorporation/registration not to exceeded ₹100 Crore.

· An entity shall cease to be a Startup on completion of 10 (Ten) years from the date of its incorporation/registration or if its turnover for any previous year exceeds ₹100 Crore.

3

Nature of Facility

· Term Loan/Cash Credit

· Letter of Credit/Bank Guarantee

4

Loan Quantum

· Minimum: Above ₹10 Lacs

· Maximum: ₹1000 Lacs 

5

Credit Facility and Assessment

6

Constitution

Partnership Firm, Limited Liability Partnership, Private Limited Company.

7

Margin

· Cash Credit and Term Loan: Minimum 25%

·  Letter of Credit/Bank Guarantee: Minimum Cash Margin 15% (ZLCC can allow relaxation up to 5%)

8

Security

PRIMARY

· Hypothecation on entire Current Assets and Non-Current Assets

CREDIT GUARANTEE

The entire credit facility to be covered under Credit Guarantee Scheme for Startups (CGSS) of National Credit Guarantee Trustee Company Limited (NCGTC).

·  Loan Sanctioned under this scheme will be covered using Transaction based Guarantee Cover model of CGSS.

ü Transaction based Guarantee Cover: Means guarantee cover obtained by the lending/investing institution on single borrower basis.

·  Maximum guarantee cover per borrower shall not exceed ₹10 Crores.

·  Credit facility being covered under CGSS should not have been covered under any other guarantee scheme.

·  To get guarantee cover, following should be ensured

ü Startup must have Stable Revenue Stream for last 12 months as assessed from audited monthly statements.

ü Guarantee Application Form to be sent to HO, MSME Department  for generation of CGPAN,

ü Disbursement/availment details must be sent to HO, MSME Department within 10 days for updation on NCGTC Portal and payment of guarantee fee.

9

Interest Rate

·  Attractive Rate of Interest (RoI) starting from 9.90% to 11.50% linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower

·  ZLCC and above authority empowered to allow RoI concession on case to case basis on merits

10

Repayment Period

(Term Loan)

Maximum 120 Months including moratorium period of 36 months (Maximum)

11

Other Features

· External Credit Rating not required.

·  Takeover not allowed.

·  Adhoc facility not allowed.

Sl No

Parameters

Features

1

Purpose

To provide Fund Based Facility in the form of Cash Credit and Term Loan and Non-Fund Based Facility in the form of Letter of Credit and Bank Guarantee to enterprises engaged in Textile manufacturing activities including Hosiery

2

Eligibility

All entities undertaking business activity and falling within the definition of MSME as per MSMED Act, 2006 and as amended from time to time

·  Entity should have Udyam Registration Certificate and GST Registration, as applicable

·  Business enterprises should comply with applicable statutory requirements such as license under local laws/other necessary license to run the unit, as the case may be

3

Credit Score

· Minimum Consumer CIBIL Score: 650

· Minimum CIBIL MSME Rank (CMR): CMR-6

4

Loan Quantum

· Minimum: Above ₹10 Lacs

· Maximum: ₹2500 Lacs 

5

Credit Facility

6

Constitution

Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Joint Venture, Private/Public Limited Company

7

Margin

·  Minimum 25% of Stock and Book Debts (90 Days), Minimum 35% of Book Debts (above 90 Days and up to 180 Days)

·  Term Loan: Minimum 25%

·  Letter of Credit/Bank Guarantee: Minimum Cash Margin 10%

8

Security

PRIMARY

· Hypothecation on entire Current Assets and Non-Current Assets

COLLATERAL

·  Limit above ₹10 Lacs and up to ₹500 Lacs may be covered under CGTMSE or “Hybrid Security” product of CGTMSE

·  Limit above ₹500 Lacs, may be sanctioned against 50% realisable value of SARFAESI enabled security/liquid Security (FDR, NSC, KVP and LIC)

9

Interest Rate

·  Attractive Rate of Interest (RoI) starting from 9.60% linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower

·  ZLCC and above authority empowered to allow RoI concession on case to case basis on merits

10

Repayment Period  

(Term Loan)

Maximum 144 Months including moratorium period of 12 months (Maximum)

11

Other Features

· External Credit Rating not required

· Takeover allowed

· limit against Book Debts not to exceed 75% of total Fund Based Working Capital limit

Sl No

Parameters

Features

1

Purpose

To provide financial assistance for purchasing new vehicle(s) (LCV/MCV/HCV) eligible for registration as commercial vehicle.

2

Eligibility

Entity engaged in transportation business or any other business activity permitted under law of the land.

·      Scheme shall be applicable to all customers. Classification of account under MSME, Agriculture and Retail shall be based on fulfillment of guidelines of respective segment.

·      Unit must be in business for minimum two years and should be profit making.

·      Existing facility availed by the customer shall not be under SMA-1/SMA-2/NPA category during last 12 months.

3

Constitution of Borrower

Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Joint Venture, Private/Public Limited Company, HUF, Society, Trust, Institution, Association.

4

Loan  Quantum, Sanctioning Authority and Lending Power

 Note

·   More than one vehicle can be financed to a single borrower by SME Hub/ZLCC and above committee.

5

Facility Type and
Loan Tenure

Term Loan

·  Loan repayable in 60 months (maximum) (ZLCC and above committee can allow up to 84 months) including Moratorium of 3 Months (Maximum), if allowed, in case of MCV/HCV or 1 Month (Maximum), if allowed, in case of LCV

·  Auto Repayment of Principal will be in Equal Monthly Installment.

·  Auto Repayment of Interest will be on as and when applied basis.

6

Margin

Minimum 15%  

7

Security

PRIMARY

Hypothecation on vehicle purchased out of Bank finance.

COLLATERAL

·  Limit above ₹10 Lacs and up to ₹500 Lacs may be covered under CGTMSE or “Hybrid Security” product of CGTMSE

·  Limit Above ₹500 Lacs, may be sanctioned against 50% of realisable value of SARFAESI enabled security/liquid Security (FDR, NSC, KVP and LIC)/combination of SARFAESI enforceable property and liquid collaterals.

·  ZLCC may relax collateral value up to maximum 20% on case to case basis on merits so that post allowing concession the value of security will be minimum 30% of the limit.

8

Interest Rate

·  Attractive Rate of Interest (RoI) starting from 9.60%*

* For loan up to ₹100 Lakh, RoI is linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower.

* For loan above ₹100 Lakh, RoI is linked to Consumer CIBIL Score/Commercial CIBIL MSME Rank (CMR) of the Borrower which is interlinked with Internal Credit Rating.

· ZLCC and above authority empowered to allow RoI concession on case to case basis on merits.

Sl No

Particulars

Proposed Guidelines

1

Purpose

The objectives of the Scheme are

 To provide the youth of West Bengal access to institutional finance for their credit needs in order to make them self-reliant.

 To promote self-employment.

 To create employment opportunities in rural and urban areas of the State.

2

Eligibility

·  Indian National and residing in the state of West Bengal for past 10 years at least.

·  Any eligible individual including Motor Transport Workers and Building and Other Construction Workers aged between 18 - 45 years.

Only one person from one family is eligible under the scheme where 'family' means self and spouse.

3

Loan Quantum

·  Project Cost: ₹5,00,000 (Maximum)

·  Bank Loan: Maximum ₹4,75,000 in the form of Term Loan/Cash Credit/ Composite Loan (Term Loan and Cash Credit).

·  Government Subsidy: 10% of the Project cost with a ceiling of ₹ 25,000 in the form of Margin Money contribution.

Bank Loan component will be the project cost minus eligible government subsidy in the form of Margin Money contribution.

4

Margin

·  Margin will be provided by West Bengal Government @10% of the project cost with a maximum ceiling of ₹25,000. However, if Bank loan amount is ₹4,75,000 effective margin will become 5.26%

·  Bank’s Loan Policy Document 2023-24 stipulates margin requirement of 6% and 7.5% of the projected annual sales for Working Capital facility sanctioned to general borrowers and borrowers transacting digitally, respectively whereas for Term Loan margin requirement ranges from 20% to 25% which varies from industry to industry and required to be brought by the customer.

·  Under “West Bengal Bhabishyat Credit Card (WBBCC) Scheme” West Bengal Government will provide 10% of the project cost as margin money subsidy. Accordingly, request is made for approval for deviation in margin requirement.

5

Rate of Interest (RoI)

UCO Float Rate + 1.10% i.e. 9.30% + 1.10% = 10.40% p.a. at present.

Interest Rate is subject to change from time to time as per extant Bank guidelines.

6

Tenure of Credit Facility

Cash Credit

One year. To be renewed annually.

Term Loan

·  60 Months including moratorium period of 3 months (maximum) subject to not exceeding scheme validity period i.e. 31/03/2028.

7

Guarantee Coverage

·  The scheme shall have provision of credit guarantee coverage for the credit facility extended by lending Institutions/Banks in collaboration with Credit Guarantee Fund Trust for MSEs (CGTMSE).

·  The extent of guarantee coverage of the State Government over and above the available coverage under CGTMSE for all eligible borrowers will be as follows

 Maximum coverage of CGTMSE: 85%

 Maximum coverage of the State Government: 15%

Effective Guarantee coverage: 100%