• SMEs as per expanded definition established in the line of business for a minimum period of 2 years and financed/proposed to be financed under sole Banking arrangement.
• The Manufacturing/Service sector units (other than Retail Trade) should have been established in the line of activity for a minimum period of 2 years.
• In case of new Manufacturing/Service Sector units (other than Retail Trade), facility may be considered if unit is established by our existing customers having satisfactory track record and the same is set up from their own sources.
• Manufacturing and Service Sector units (other than Retail Trade) having less than two years' establishment may be considered with the prior approval of next higher authority.

• Rate of Interest

Limit

• Minimum: Rs.10.00 lac (for Rural/Semi-Urban/ Urban/Metro Branches)
• Maximum: Rs.50.00 lac (for Rural Branches)
• Rs.100.00 lac (for Semi-urban)
• Rs.200.00 lac (for Urban and Metro Branches)

Method of Assessment of Working Capital Limit

• Manufacturing Sector: As per Nayak Committee recommendations viz. minimum 20% of the accepted estimated Turnover/ Sales OR, under PBF Method, whichever is higher.
• Service Sector: 20% of projected Gross receipts/ Sales subject to verification of GST returns of previous years/ quarters in case the enterprise is not under audit.
• Note: Drawal for Working Capital (Fund based and Non-Fund based) should not exceed advance value of Land & Building/sanctioned limit, whichever is lower.

Margin

• 25% of advance value of stocks &
• 50% on Book-Debts of up to 90 days old.

Period

• CC: -12- months, subject to review every year.
• OD(Dropline): Not more than 5 years.

Security

• Primary Security: Hypothecation of Stock & Book Debts.
• Collateral Security: CGTMSE Coverage OR Available immovable collateral security + Remaining exposure shall be secured by CGTMSE guarantee coverage under Hybrid Model for Loan Limit up to Rs. 50.00 Lakh

Insurance

• Property Mortgaged should be insured as per Bank's norms. Obtaining insurance against the stocks cover may not be a condition for sanction of the facility. However, Branches may counsel their borrowers to have the stock insured in their own interest at their cost.

Credit Information Report

• Bank is authorized to make enquiries from any of the Credit Information Bureau and get the Credit Information Reports. Bank is also authorized to disclose from time to time any information relating to the loan to Credit Bureaus approved by Govt. of India or Reserve Bank of India without any notice to the borrower.