MSME UNDER PRIORTIY SECTOR

                                          MICRO SMALL & MEDIUM ENTERPRISES (MSME)

Ø MANUFACTURING ENTERPRISES :

Ø Investment in plant & machinery upto 25 lakh (MICRO)

Ø Investment in plant & machinery above 25 lakh but upto 5 crore (SMALL)

Ø Investment in plant & machinery above 5 crore but upto 10 crore  (MEDIUM)

Ø NOTE :  Khadi and village industry is classified as micro & small enterprises irrespective of Investment in plant & machinery.

Ø NOTE :  Cost of generator & pollution control equipment or tools will not be taken in cost of plant & machinery.

Ø SERVICE ENTERPRISES :

Ø Small business

Ø Transport operators

Ø Retail traders

Ø Professional & self employeed

Ø MICRO SERVICE ENTERPRISES :

Ø Investment in equipment upto 10 lakh (micro)

Ø SMALL SERVICE ENTERPRISES :

Ø Investment in equipment upto Rs 2 crore

Ø MEDIUM SERVICE ENTERPRISES :

Ø Investment in equipment upto Rs 5 crore

   CLASSIFICATION AS PRIORITY SECTOR :

MANUFACTURING ENTERPRISES :

Ø Loan to micro, small & medium manufacturing enterprises , part of priority sector irrespective of amount of advance.

Ø SERVICE ENTERPRISES :

Ø Loan to micro & small service enterprises , part of priority sector if ,

Ø Max. loan = 5 crore

Ø Loan to medium service enterprises , part of priority sector if ,

Ø Max. loan = 10 crore

Ø NOTE : as per FEB-2018 policy of RBI , restrictions of 5 crore & 10 crore for service enterprises will be removed.

Ø TERMS & CONDITIONS :

Ø As per GANGULY committee & NAYAR committee cluster approach will be adopted for financing micro & small enterprises.

Ø TARGETS AS PER NAYAR COMMITTEE ;

Ø outstanding advance to micro & small service enterprises should increased by 20% every year.

Ø Number of accounts of micro & small service enterprises should grow by 10% every year.

Ø Max. composite loan to micro & small service enterprises = 1 crore.

Ø No collateral security to be taken for loans upto 10,00,000.00

Ø  If past record is good no collateral security for loans upto 25,00,000.00

Ø If loan granted under credit guarantee scheme no collateral security for loans upto 2 crore.

Ø CREDIT GUARANTEE SCHEME FOR MICRO & SMALL ENTERPRISES ( C.G.S.M.S.E)

Ø  Scheme is operated by credit guarantee fund trust (C.G.F.T)

Ø ELIGIBILITY CONDITIONS :

Ø Unit should be micro or small enterprises except retail traders.

Ø Max. amount of loan = 2 crore

Ø No collateral security , no 3^rd party guarantee

Ø Max. interest rate : 14%

Ø GUARANTEE FEES :

Ø STANDARD RATE :  for loans in NORTH-EAST , WOMEN & MICRO ENTERPRISES : IF,

Ø LOANS UPTO 5 LAKH : 0.75% per annum of limit sanctioned

Ø LOANS MORE THAN 5 LAKH : 0.85% per annum of limit sanctioned

Ø Note :  except above two cases , 1% per annum of limit sanctioned.

Ø ADDITIONAL FEES BASED ON NPA LEVEL :

Ø NPA more than 20% : standard rate + 1%

Ø NPA >15% but <20% : standard rate + 0.5%

Ø NPA >12% but <15% : standard rate + 0.25%

Ø NPA =12% or <12% : standard rate

Ø NPA =6% or <6% : standard rate – 0.25%

Ø NOTE :  guarantee fees is applicable every year as on 31^st MARCH and fees should be payable within 60 days.

Ø CLAIM :

Ø For loans upto 5 lakh : 85% of amount in default (Max. claim = 4,25,000.00)

Ø If loan more than 5 lakh : in case of NORTH-EAST & women Ist 50 lakh : 80% of amount in default.

Ø Note :  and all other cases 75% of amount in default.

Ø For loans above 50 lakh : 50% of amount in default ( Max. claim will be 1 crore)

                                       NATIONAL EQUITY FUND SCHEME

Ø SIDBI provides margin money assistance to small entrepreneurs without charging any interest.

Ø Max. project cost : 50 lakh

Ø Margin money assistance = 25% of project cost (maximum 10 lakh)

Ø Repayment period : 7 years

Ø Borrower’s margin : 10%

                                 LAGHU UDYAMI CREDIT CARD

Ø Issued to micro & small enterprises except transport operators

Ø Max value of the card = 10 lakh

Ø Validity period = 3 years

Ø Limit :

Ø In case of professionals : 50% of fees received last year

Ø In other cases 20% of last year’s sale

                                            WEAVER CREDIT CARD (W.C.C)

Ø It is for handloom weavers

Ø Max. value of the card = 2 lakh

Ø Max. 3 years validity

                                             EXPORT CREDIT

Ø Incremental export credit over previous year will be a part of priority sector but maximum can be 2% of ANBC.

                                    EDUCATION LOAN

Ø No restriction on amount of loan but maximum 10 lakh will be priority sector & balance amount non priority sector

                                               HOUSING LOAN

Ø LOAN FOR CONSTRUCTION OF HOUSE :

Ø METRO AREA : POPULATION ABOVE 10 LAKH :

Ø Max. loan = 28 lakh

Ø Max. cost of house = 35 lakh

Ø OTHER AREAS :

Ø POPULATION < 10 LAKH

Ø Max. loan = 20 lakh

Ø Max. cost of house = 25 lakh

Ø LOAN FOR REPAIRING OF THE HOUSE :

Ø METRO AREA :

Ø Max. loan = 5 lakh

Ø OTHER AREAS :

Ø Max loan = 2 lakh

Ø INDIRECT HOUSING LOAN :

Ø    Nature of agency	Ø    Purpose	Ø    Max. loan per house
Ø    Govt.	Ø    Houses for slum dwellers	Ø    10 lakh
Ø    Pvt. Or Govt. agency	Ø    Houses for EWS & low income groups	Ø    Max. cost per house 10 lakh
Ø    Housing finance comp.	Ø    Construction of individual houses	Ø    Ax. Loan per house 10 lakh

     NOTE : E.W.S OR L.I.G MEANS  : ANNUAL INCOME UPTO Rs 2,00,000.00

 SPECIAL INFRASTRUCTURE :

Ø Education (for schools, colleges)

Ø Healthcare (for hospitals)

Ø Sanitation (toilet)

Ø Drinking water supply

Ø Maximum loan per borrower = 5 crore

RENEWABLE ENERGY (SOLAR ENERGY) :

LOAN FOR INDIVIDUAL HOUSE HOLD :

Max. loan = 10 lakh

LOAN FOR COMMUNITY LIGHTING : Max .loan = 15 crores (15,00,00,000/-)

OTHER PRIORITY SECTOR :

Ø Loan upto Rs 5,00,000/- to any poor person.

Ø Poor person means annual income in rural area upto Rs 1,00,000/- per annum

Ø Maximum annual income in semi urban , urban & metro area = Rs 1,60,000/-

 FOR DETAILS, CLICK ON BELOW LINK
MSME ALL SCHEME