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Small Scale Industries

The document outlines financing options for small scale industries, including simplified loan applications and specific time norms for processing based on loan amounts. It highlights various schemes such as the Stree Shakti Package for women, Laghu Udhyami Credit Card, and SME CREDIT PLUS, which offer reduced interest rates and additional credit limits. Additionally, it mentions collateral-free loans for certain amounts and the availability of guarantees under the Credit Guarantee Fund Trust Scheme for SSI.

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Phani Raghavalu
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6 views1 page

Small Scale Industries

The document outlines financing options for small scale industries, including simplified loan applications and specific time norms for processing based on loan amounts. It highlights various schemes such as the Stree Shakti Package for women, Laghu Udhyami Credit Card, and SME CREDIT PLUS, which offer reduced interest rates and additional credit limits. Additionally, it mentions collateral-free loans for certain amounts and the availability of guarantees under the Credit Guarantee Fund Trust Scheme for SSI.

Uploaded by

Phani Raghavalu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

SMALL SCALE INDUSTRIES - FINANCING

• Simple loan application as per Kapoor committee recommendations introduced.


• Acknowledgements for receipt of loan application by branch by affixing date stamp.
• Time Norms for disposal of loan applications:
a. Upto Rs.25000 - 2 weeks

b. Over Rs.25000 & upto Rs.5.00 lacs - 4 weeks

c. Over Rs.5.00 lacs - 8-9 weeks

• Under Stree Shakti Package (Scheme for women) at lower margins (reduced by 5%) and interest (reduced by 0.5%) in respect
of loan above Rs.2.00 lacs.
• Laghu Udhyami Credit Card: Hassle free credit upto Rs.10.00 lacs with a good track record of 2 years.
• SME CREDIT PLUS additional limit @ 20% of original limit, to meet the unforeseen requirements of SSIs is sanctioned which can
be availed 12 times in a year.
• SME SMART SCORE: The scheme is based on scoring model & simplified process to reduce the delay in sanctioning process.
• General Purpose Term Loan is sanctioned upto Rs.50.00 lacs based on Good Track Record for shoring up of NWC, Capital
expenditure, substitution of high cost debt, etc.
• Composite loan upto Rs.50.00 lac is sanctioned to SSI units.
• Working Capital Finance: Minimum 20% of projected annual sales turnover based on Nayak Committee recommendation.
• Lower rate of interest to conventional Industries such as Rice Mills, Dal Mills & Cotton Ginning Mills.
• No collateral security for advances upto Rs.5.00 lacs.
• No collateral for advances over Rs.5.00 lacs and upto Rs.25.00 lacs based on good track record and financial position.
• For loans sanctioned without collateral security/third party guarantee for advances between Rs.5.00 lacs and Rs.25.00 lacs
guarantee is available under Credit Guarantee Fund Trust Scheme for SSI (CGTSI).

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