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  • Eligibility –
  • All Retail Traders, Wholesale Traders including Supermarkets, Malls, Departmental Stores dealers in Groceries ,Consumer durables, Co-operative stores etc.
  • Existing as well as new proprietorship, partnership concerns (including Limited Liability Partnership), limited Companies engaged in the trading activity are eligible.
  • The firm should be registered under VAT/Sales Tax/Shop & Establishment Act.
  • Quantum of Limit –
  • Maximum Working Capital can be sanctioned under the scheme will be Rs.2500 Lacs per party.
  • The maximum term loan per party that can be sanctioned under the scheme will be Rs. 500 Lac within per party total limit of Rs.2500 Lac. The ceiling will be 75% of cost of the project/asset.


  • Margin –
  • For working capital

Limit up to Rs.10 Lacs - No Margin
Limits above Rs.10 Lacs and Up to Rs.2500 Lacs - 20%

  • For Term Loan - 25%   ( out of total cost of  asset/equipment /construction, 25% has to be brought in by the borrower)


  • Rate of Interest -

125% or more collateral security as %age of total limit

1.50% less than applicable rate as per Master Tables

75% or more and below 125% collateral security as %age of total limit

0.50% less than applicable rate as per Master Tables

(rate of interest is subject to revision from time to time)

  • Security
  • Prime Security –
  • Working Capital: The advance shall be secured by hypothecation of stocks duly insured and/or book debts. At any point of time the value of stock and /or book debts shall not be less than 100%.
  • Term Loan: Hypothecation of assets created out of Bank’s finance


  • Collateral Security - EM of immovable property like land and buildings / pledge of securities like NSCs/KVPs/Deposits / assignment of LIC policies (only surrender value to be taken into account ) /other Government securities to the extent of minimum 75 % of loan amount.
  • Guarantee –
  • Third party guarantee is preferable in cases other than Partnership firms, LLP firms and limited companies.


  • In case of Partnership firms, Limited Liability Partnership firms personal guarantee/s of partners in their individual capacity is mandatory.
  • In case of private/public limited companies personal guarantee/s of promoter Directors is/are mandatory.


  • Repayment Period in case of Term Loan - Maximum 84 months including moratorium period.