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  Home > Advances > Micro and Small Enterprises (MSEs)

Schemes for financing Micro and Small Enterprises (MSEs)
  Definition of Micro, Small & Medium Enterprises (MSME)
  Credit Guarantee Fund Trust Scheme for Micro, Small & Medium Enterprises (MSEs)
  Loans to Micro and Small Enterprises (MSEs)
  Retail Trade- Advances to Retail Traders (Other than Fertilizers & Mineral Oils)
  MSEs- Service Sector (Small Business Enterprises)
  Professionals & Self-Employed persons
  Transport Operators
  Laghu Udyami Credit Card Scheme
  Stree Shakthi package for Women entrepreneurs
  MyBank Sanchari Suvidha- Finance to Hotels, Restaurants and Lodges
  Annapurna- Scheme for financing Women for establishing Food Catering Units
  Mybank Doctor - New product to assist Doctors & Medical professionals for setting up Clinic/Nursing Home
  Flexi (SSI) Term Loan
  SME Credit Plus
  Green Auto
  Swarojgar Credit Card scheme
  Mybank Professional Plus
  Artisans Credit card (ACC)
  Stand-by-line of Credit (Term Loan) for SSI and C&I Borrowers
  Reimbursement Facility under Term Loans: (SIB and C&I Segment borrowers)
  "Sooryadeepa": Scheme for Financing Solar Home-lighting system
  Channel financing to ACC Cement Dealers
  State wise roadmap for increase of credit to minority over the next two years
  Priority Sector Lending (PSL) target for Minority Communities as on September 2008 : State-wise report
  Interest rates on advances made to Micro & Small Enterprises
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Micro and Small Enterprises (MSEs)– Definition of Micro, Small and Medium Enterprise Manufacturing and Service Segments.
    Manufacturing Sector Services Sector
  Micro Enterprise The investment in Plant and machinery ( Original Cost) does not exceed Rs 25 lakhs The investment in Equipment does not exceed Rs 10 lakhs
  Small Enterprise The investment in Plant and machinery ( Original Cost)is more than Rs 25 lakhs but does not exceed Rs 500 lakhs The investment in Equipment is more than 10 lakhs but does not exceed Rs 200 lakhs
  Medium Enterprise The investment in Plant and machinery ( Original Cost) is more than 500 lakhs but does not exceed Rs 1000 lakhs The investment in Equipment is more than Rs 200 lakhs but does not exceed Rs 500 lakhs
   
 

 

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CREDIT GURANATEE FUND TRUST SCHEME FOR MICRO & SMALL ENTERPRISES (CGTMSE)
 

 
  SALIENT FEATURES:
  CGTMSE was set up jointly GOI and SIDBI
The scheme is extended to all New and Existing units of Micro and Small Enterprises
The scheme is available both under Manufacturing Sector and Service Sector
Eligible loan limit is up to Rs. 50.00 lakhs
No collaterals including the third party guarantee
The Maximum guarantee cover on any loan is 75% of the loan amount. The loans to
Micro enterprises up to Rs.5.00 lacs and loans to MSE operated by women entrepreneurs
are covered up to 80% of the loan
One Time upfront guarantee fee and Annual Service fee at specified rate on the credit facility has to be paid to the Trust before 31st of May every year
 

 

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Loans to Micro & Small Enterprises (MSEs)
 

 
  Eligibility
  Any individual / partnership firm / Public or Private Ltd. Companies desirous of promoting MSEs (Manufacturing sector) with investment in Plant & Machinery not exceeding Rs. 5 crore and Medium Enterprises with investment in plant & Machinery is above Rs. 5 Crore and upto Rs. 10 crores.
   
  Extent of Finance
  Need based (both fund based and non-fund based)
   
  Margin
  Working Capital/ Medium Term Loan
a) No margin up to Rs.25000/-
b) Credit limit over Rs.25000/-
  Flexible approach:15% - 25% depending on the merits of each case
   
  Security
 

Primary:
i)   Assets created out of Bank finance

Collateral:

  • Obtention of collateral Security exempted
  • Up to Rs. 5 lacs
  • Over Rs. 5 lacs and up to Rs. 25 lacs, based on good track record and satisfactory financial position
  • Over Rs.25 lacs at the discretion of the Bank
   
  Interest 
  As per prevailing rates from time to time
   
  Export Finance
 
  • Establishment of Letter of Credit
  • Pre-shipment finance
  • Post-shipment finance
  • Assistance against Duty draw back
 

 

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  Small Business Finance
   
Retail Trade- Advances to Retail Traders (Other than Fertilizers & Mineral Oils)
   
  Eligibility
  All types of Retail Traders are eligible. Persons who propose to start retail trade business, fair price shop, consumer co-operative stores are also eligible for finance
   
  Extent of Finance
  Credit limits up to Rs.20 lacs
   
  Rate of Interest
  As per prevailing rates from time to time
   
  Margin
  No margin up to Rs.25000/-
15 to 25 percent, for credit limits exceeding Rs. 25000/-
   
  Security
  Assets created out of Bank’s finance
Collateral security as per Bank’s norm
 

 

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Small Business Enterprises
   
  Eligibility
  Individuals and firms managing a business enterprise established mainly for the purpose of providing any service other than professional services.
   
  Extent of Finance
  Individual limits for working capital will be fixed depending upon the requirement of activities pursued. Advances for acquisition, construction, renovation of House Boats and other tourist accommodation will be financed. Advances for distribution of mineral oils will also be considered under this category
   
  Rate of Interest
  As per prevailing rates from time to time
   
  Margin
  No margin up to Rs.25000/-
15 to 25 percent for credit limits exceeding Rs.25000/-
   
  Security
  Assets created out of Bank’s finance
Collateral security as per Bank’s discretion
 

 

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Professionals & Self-Employed persons
   
  Eligibility
   Medical practitioners including Dentists, Chartered Accountants, Cost Accountants, practicing Company Secretary, Lawyers or Solicitors, Engineers, Architects, Surveyors., Construction Contractors or  Management consultants
   
  Extent of Finance
  Professional and self employed persons are eligible for assistance up to Rs.10 lacs of which not more than Rs.2 lacs should be for working capital requirements. However, in case of professionally qualified medical practitioners, financial assistance will be up to Rs.15 lacs for working capital limits for setting up practice in semi-urban and rural areas
   
  Rate of Interest
  As per prevailing rates from time to time
   
  Margin
  No margin up to Rs.25000/-
15 to 25 percent for credit limits exceeding Rs.25000/-
   
  Security
  Assets created out of Bank’s finance
Collateral security as per Bank’s norms
 

 

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Transport Operators
   
  Eligibility
  Advances to Small Road and Water Transport operators.
   
  Extent of Finance
  Not exceeding Rs 200 lakhs
   
  Rate of Interest
  As per prevailing rates from time to time
   
  Margins
  No margin up to Rs.25000/-
15 to 25 percent for credit limits exceeding Rs.25000/-
   
  Security
  Assets created out of Bank’s finance
Collateral security as per Bank’s norm
 

 

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Laghu Udyami Credit Card Scheme
   
  Eligibility
  Small businessmen, retail traders, artisans, Small industrial units including those in Tiny sector, Professionals and self employed persons, enjoying working capital up to a limit of Rs 10 lacs.
   
  Limit
 

Fixed at 20% of annual sales turnover declared in Income Tax/Sales Tax returns

Professionals and Self- employed persons are eligible for credit limits up to 50% of their gross annual income, as declared in their income- tax return

(The assessment norms in vogue is as per the Nayak Committee recommendations)

For units above Rs. 2 lacs and up to Rs. 10 lacs, scoring model method will be followed.Those who score more than 60% would qualify for coverage under the scheme
   
  Primary security
  Hypothecation of stock in trade, receivables, machinery, office equipment etc.,
   
  Collateral Security
  As decided by the Bank
   
  Margin
  25%
   
  Validity
  Valid for 3 years. Half-yearly review will be done on the basis of last 12 months turnover in the account
   
  Interest
  As per prevailing rates from time to time
   
  Insurance
  Insurance cover is waived for limits up to Rs.25000/-.
 

 

Contact your nearest Branch of State Bank of Mysore or


Chief Manager
State Bank of Mysore
Small and Medium Enterprises Department
H .O.: K.G.Road, Bangalore - 560009, INDIA
Phone: 91 80 22353901 to 22353909 ; 22353473.extn.377
Fax: 91 80 22353458
Email:cmsib@sbm.co.in

 

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