25 Years of Excellence

02:25 AM Thu, 01 December 2022

ATM Toll Free No. 1800 123 6230

02:25 AM Thu, 01 December 2022

ATM Toll Free No. 1800 123 6230

Small Scale Industries (SSI)

For setting up new units; expansion, modernization & renovation of existing units, purchase of land, construction of building, machinery, equipment etc., and working capital facilities.

Amount of Loan

  • Term Loan (Need Based)
  • Working Capital Loan liberally sanctioned at 20% of projected annual turnover basis
  • Composite loan limit has been raised to 100 Lacs (For Term Loan Working Capital)

Comfortable Margin option available.

Collateral Security
Advances over Rs.25000, based on good track record and financial position, collateral security is required in addition to Hypothecation of Stock Machinery.


  • Small Enterprises (SSI) Units engaged in industrial activity with original investment in plant & machinery upto Rs.500 lakh.
  • Micro Enterprises (Tiny Units)
  • Units with initial investment in plant & machinery upto Rs.25 lakh, irrespective of the location of the unit.

Amount of Loan
Need based. (Composite loans upto Rs.100 lakh).

Term Loan & Working Capital
Up to Rs.2,00,000/- NIL
Above Rs.2.00 lakh up to Rs. 5 lakh 15%
Above Rs. 5 lakh 20%

For old machinery having a minimum life of 5 years. (In case of Gen-set, it should not be older than three years)
Repayment Upto 7 years (for term loan) depending upon projected profitability
Collateral Security as per H.O. guidelines.

Loans to Craftsmen & Qualified Technician Entrepreneurs

To set up SSI units, for purchase of fixed assets and meeting working capital needs.


  • ​For acquisition of fixed assets (plant, machinery, land, building, tools, etc.).
  • ​For working capital requirements within the ceiling limits of Rs 3 lakh / Rs 5 lakh as the case may be.

Technically qualified entrepreneurs and / or those having adequate technical practical experience in a particular field of technology.

Term Loan
Up to Rs. 2 Lacs NIL
Above Rs 2 Lacs up to Rs. 3 Lacs 10%
Above Rs. 3 Lacs up to Rs. 4 Lacs 15%
Above Rs. 4 Lacs up to Rs. 5 Lacs 20%

Amount of Loan
Maximum Rs 3 lakh in case of individuals and Rs 5 lakh in case of partnership firms or joint stock companies. (In case of ancillary unit or industry with joint financing of SF / Bank higher assistance of Rs 5 lakh for individual and Rs 10 lakh for groups).

5 to 7 years for term loan including moratorium period.

Collateral Security
As per H.O. guidelines.

Location of Project
Preferably the unit should be set up in an industrial estate where there is provision for suitable accommodation with the requisite facilities such as water, power, transport and communication. Project set up in industrial areas, zones or sites specifically declared as undeveloped by the State Government, concerned agencies / departments will be considered. The required accommodation should, as far as possible, be acquired on rental or hire purchase basis. This will ensure that the investment in fixed assets is made for purchase of the required machinery and equipment, thereby enabling the entrepreneurs to make the best use of our financial assistance.

Loans for Financing of Workshops / Garages

For technology up gradation of Automobile Garage (Workshops)

To meet the expenditure on

  • Purchase of capital equipment, need based civil works and acquisition of additional land.
  • Acquisition of technical know-how, designs, drawings.
  • Upgrading process technology and products with thrust on quality improvement.
  • Cost of Technology Quality Management (TQM) and acquisition of ISO 9000 series certification and
  • Preliminary and pre-operative expenses to the extent of 10% of project cost.

Project Outlay
The project outlay on fixed assets already created & items indicated above should not exceed Rs 10 lakh (as per the investment in equipments ceiling of service industries under Micro Enterprises).


  • Small Scale Service Units including those which go in for modernization / technology up gradation;
  • The outlay on land and building should not exceed 25% of the outlay on modernization / technology up gradation programmed;
  • The units should be in operational for at least one year and not be default to bank.

Salient Features

  • Need based extent of the loan
  • Minimum promoter’s contribution required is 10% of the cost of the project.
  • Repayment period – of 5 to 7 years (excluding moratorium period).
  • Working capital facilities will be of continuing nature subject to review / renewal every year.

Collateral Security

  • No Collateral Security & Third Party Guarantee for Loans above Rs.50 Lacs covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • In other cases, Collateral Security or third party guarantee is asked only in cases where primary security is inadequate or for other valid reasons and not as a matter of routine.

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