• Credit facility extended under the scheme would include both working capital and term loan requirements of entrepreneurs. The credit limit shall be fixed based on the assessment of working capital requirements as well as cost of tools / equipment and other fixed assets required for carrying out the activity. While evaluating working capital requirements, the norms adopted as per Nayak Committee recommendations (20% of anticipated turnover) to be kept in view.
  • The working capital portion of total limit sanctioned is to be utilized as revolving cash credit and will provide for any number of drawls and repayment within the limit. The operative levels shall fix a repayment schedule for the term loan portion availed for the purchase of tools and equipments with a maximum door to door tenor of five years, including moratorium period.
  • Individuals engaged in the entrepreneurial activity in the non-farm sector, which is eligible for classification under the priority sector guidelines
  • The borrowers should not have been loan defaulter at any bank/ branch.

 1.00 lac for the purpose of non-farm entrepreneurial activity which is otherwise eligible for classification as priority sector. The limits shall be fixed on the basis of requirement of the prospective borrower on case to case basis upto a maximum of  1.00 lacs.

  • No margin is required for loans upto  50000/.
  • 10% for limits above  50000. and upto  1.00 lac.

For working capital:

  • Minimum margin of 20% of working capital requirements.
    Hypothecation of all the assets financed (including tools and equipment), raw material, semi-finished goods, finished goods & book debts and other current assets. Towards this necessary security documents would be obtained as per the norms.
    As per the present policy of the bank no collateral security and/ or third party guarantee is to be obtained under the scheme.
(IMPORTANT): All credit facilities shall be got covered under CGTMSE, if available, and the cost of cover will be borne by the bank.