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Serial No.


Guidelines for the Scheme



All units engaged in manufacturing/services/trading activities under MSME are eligible.

Units involved in betting/real estate activities are not eligible for venture financing under this scheme.



a. To meet the working capital requirements (both fund-based and non-fund-based) of commercial activities.

b. Term loans for self-use business are as follows:

Purchase/construction/renovation of business premises, factories/offices/shops/warehouses/plants and machinery/equipment etc. for commercial activities.

Purchase of equipment such as computers, air conditioners, furniture, and fixtures, and other fixed assets like commercial vehicles.

Any other purpose which results in the creation of assets through bank finance for running the business.



Working capital and/or venture financing (both fund-based and non-fund-based).

MSME service enterprises (such as hospitals, educational institutions, professionals like doctors, CAs, etc.) can avail secured overdraft (OD) as venture financing, with a maximum limit of Rs. 5.00 Crore. For the OD facility, consideration should not be given to manufacturing and trading accounts.



Minimum: More than Rs. 10 lakh

Maximum: Up to Rs. 50.00 Crore [OD - Rs. 5.00 Crore]




20% [Stock (excluding dead stock) and 90 days book debts]


a. NTV - 25% (Cash/FDR)

b. Margins in securities and bank guarantee may be reduced at the discretion of the authorized official as per the loan-to-value policy.

Term Loan

Plant and machinery/equipment: 25%

Land and building/others: 35%



Working capital [CC/OD]: On demand

Term Loan: As per the existing loan policy of the bank.


Collateral Coverage

Primary: All assets created from bank finance will be hypothecated/mortgaged etc. in favor of the bank through restrictive/hypothecation etc.

Collateral Coverage:

a. Minimum 75% coverage of the loan amount through assignment of immovable assets (land and building) and/or other liquid assets like NSCs/KVPs/deposits/LIC policies or other governmental securities. For OD facility, coverage up to 125% may be considered.

b. For all MSMEs (including trading) under the scheme, consideration may be given for collateral coverage against the value of immovable property obtained from the term loan for self-use in the business (fully constructed and ready for occupation and hypothecated to the bank).

c. No consideration should be given for collateral against agricultural property/educational institutions/hospital properties/religious trusts.

d. For liquid assets clearly defined for valuation purposes, consideration may be given at a weightage of 1.50 times.


In-Built Top-up Loan

Branches/authorized officials may consider approval based on the requirement of in-built top-up loan, with a maximum limit of 20% of the stipulated limit (term loan, non-fund-based/fund-based venture financing), subject to a maximum of Rs. 5.00 Crore.

For more information, please contact our nearest branch.