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Product Name

Digital Enhancement of Working Capital Limit


Need based Renewal cum Enhancement of Working Capital Limit to eligible MSEs borrowers for meeting their Working Capital requirements. (Only for income generating business activities).

Eligibility Criteria

All ETB (Existing to Bank) Micro & Small enterprises engaged in Manufacturing / Service / Trading Activities/ Allied Agriculture Activities who are having Working Capital facility and fulfilling below mentioned criteria will be eligible under the scheme:

  1. i- Borrower/Promoter’s age: 21-75 Years.
  2. ii- Sole Banking with Union Bank of India.
  3. iii- Entity should have valid Udyam Registration Number (URN)
  4. iv- Borrower/Promoters should have valid Aadhar & PAN.
  5. v- Borrower / Promoter and Sister Concern name should not appear in any of the defaulter lists/CFR.
  6. vi- Constitution other than Individual / Sole proprietorship / Partnership /Company/ LLP are not eligible.
  7. vii- Overdraft facilities are not eligible.


Fund based Working Capital (Cash Credit)


Working Capital Limits up to Rs 10.00 lakhs (including Proposed Enhancement).


In case of Working Capital, assessment will be done by Turnover method.


20% (minimum)


Running account repayable on demand (interest to be served as & when due)

Primary Security

Hypothecation of Stock & Book Debts.

Collateral Security

1. Existing Collateral Security (if any) will continue.

2. If no Collateral Security; loan is to be covered under CGTMSE scheme.

Credit Scoring

As per extant guidelines.


1. Personal Guarantee of all borrower(s), promoter director, proprietor, partners of the firm.

2. Existing Guarantee should continue. However, if the facility is covered by CGTMSE no third-party guarantee is required.

Documentation & Stamp duty

Manual execution of Documents including collection of Stamp Duty as per extant guidelines.

Interest Rate

As per the prevailing rate of interest/guidelines.

Processing Charges

As per extant guidelines.

Documentation charges

As per extant guidelines.

Convenience fee

₹ 1000 plus GST

(This fee will be collected upfront)

Renewal of Limit

Subsequent Renewal to be done annually as per extant guidelines.


Comprehensive insurance of all the securities inclusive of Bank’s clause is to be obtained for 110% of assets value by branch manually.

Other Terms and Conditions

The Periodicity of Submission of Stock Statement and Book Debts is as per the existing terms and Conditions of the facility.

Classification of account as NPA

The extant prudential norms on income recognition, asset classification and provisioning will apply.


Charging of interest is to be done uniformly as is applicable to MSE advances.

To apply for Digital Enhancement of Working Capital Limit, please Click Here.

Rate of Interest – Please Click Here to know our latest interest rates.

Conditions apply.

For more details, please contact our nearest branch.