What are the criteria for Micro & Small Enterprises?

• The Micro, Small and Medium Enterprises in Manufacturing and service sector are defined as under in MSMED ACT, 2006

Particulars	Investment in Plant & Machineries 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
Medium Enterprises	Above Rs.500/- lacs and up to Rs.1000/- lacs	Above Rs.200/- lacs and up to Rs.500/- lacs

The micro and small (service) enterprises shall include small road & water transport operators, small business, professional & self-employed persons, retail trade i.e. advances granted to retail traders dealing in essential commodities (fair price shops), consumer co-operative stores and advances granted to private retail traders with credit limits not exceeding Rs. 20 lakh and all other service enterprises, as per the definition under MSMED Act.

 

Whether Term Finance and working capital finance is sanctioned by the Bank?

• Yes. Both Term Finance and working capital facilities are sanctioned by the Bank.

Whether collateral security is required?

• No collaterals/third part guarantee for loans up to Rs.100/- lacs which are covered under CGTMSE.For other accounts which are not covered under CGTMSE, Bank may stipulate collaterals as per Bank’s guidelines.

Whether A borrower, who has availed certain credit facilities secured by collaterals and/or third party guarantees and is sanctioned distinct/separate credit facility without collateral security/third party guarantee, can be covered under CGTMSE scheme?

• Yes