Scheme Guidelines

• All Micro and Small Enterprises (MSE) engaged in manufacturing activity or service activity or trading activity irrespective of constitution will be eligible under the scheme.

• The Unit to avail loan under Sole Banking Arrangement (excluding retail loans) and entire sales turnover is to be routed through Cash Credit (Working Capital) Account.

• Digital portion to be maintained at minimum 25% of the projected Sales Turnover routed through Bank Books during the sanction period. 

To meet need based working capital (Fund Based) requirement of MSEs, which are adopting Digital Channels for business transactions, on the basis of Projected Sales Turnover acceptable to the Bank.

Maximum upto Rs.5.00crore

• 20%

• Need Based assessment based on projected Sales Turnover (Based upon past and current trend) acceptable to the Bank

• The computation of Bank finance  will be as under:
• 30% of Digital Portion of projected sales
• 25% of balance portion of projected sales

As per extant interest rate guidelines for Micro and Small Enterprises. However, concession of 0.50% over applicable rate of interest subject to minimum appropriate MCLR to MSEs having digitized sales turnover of above 50%.

7.

Security

Primary: All assets created out of Bank’s finance shall be charged in favor of Bank.     

Collateral: Wherever, the account could not be covered under any Credit Guarantee Scheme, collateral security coverage of minimum 60% of total credit facility is to be obtained.

On demand. To be renewed every 12 months as per extant guidelines.