MSME LoanThe doorway to your Dream Home
The MSME is thrust area of Indian Banking System. Every financial institute has some special products designed for MSME
MSME Loan Terminology
Manufacturing Enterprises i.e. enterprises engaged in the manufacture or production, processing or preservations of goods with investment in Plant & Machinery as stated above.
Service Enterprises i.e. Enterprises engaged in providing or rendering services and whose investment in equipment as specified above. (Original cost excluding Land & Building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006).
Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investments criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.
The Micro, Small and Medium Enterprises in Manufacturing and service sector are defined as under in MSMED ACT, 2006:
|Particulars||Investment in Plant & Machinery in case of Manufacturing Enterprises||Investment in Equipment in case of Service Sector Enterprises|
|Micro Enterprises||Up to Rs. 25/- lacs||Up to Rs.10/- lacs|
|Small Enterprises||Above Rs. 25/- lacs and up to Rs.500/- lacs||Above Rs.10/- lacs and upto Rs.200/- lacs|
|Above Rs.500/- lacs and up to Rs.1000/- lacs||Above Rs.200/- lacs and up to Rs.500/- lacs|
Key Benefits :
The loans and advances offered to MSME Units can be used for the basic needs of:
Acquisition of factory, land and construction of building spaces.
Purchase of plant and machinery including lab equipment, testing equipment, etc.
Meeting working capital requirements, like raw materials, stock-in- progress, finished goods and for purchase or discounting of bills.
Temporary additional assistance for meeting the urgent needs of raw material.
Additional monitory assistance for any eligible purpose.