• Posted on: 24 June 2016
  • By: admin



Target group

All existing SME units, as per new definition, run by Individuals, Proprietorship / Partnership firms, Limited Company, Trust, Society


The unit / borrower should have sufficient net worth/source of funds to pay for the margin and initial recurring expenses. Conduct of the existing account must have been satisfactory. 

Entry level credit rating should be SBS 5. No deviations to be allowed in entry level norms.


To purchase transport vehicles for delivering their products / Services. Educational institutions also eligible for transport vehicles for providing transportation services to students / faculty / staff. Only new vehicles will be considered. Second hand vehicles not permitted under the scheme.

Items to be financed

Chassis + Body building costs + registration , insurance , road tax, accessories AMC etc.

Nature of facility

Term Loan


To be repaid in 84 equated monthly installments inclusive of moratorium of maximum 3 months.

Appraisal of loan

The economic viability should be worked out as per the overall income generated and surplus for loan installment / interest payment from the existing business operation of the unit.

Average DSCR should be minimum 1.25.

Margin and Asset Coverage Ratio

Margin will be 20% of the cost of vehicle on road (chassis, body building and initial insurance, registration ,Road Tax & AMC).

Rate of Interest

The rate of interest shall be applicable to existing credit rating of the account as well as aggregate credit limit arrived at after clubbing proposed finance for vehicle .

Processing Fee, Documentation charges etc

For accounts falling within regulatory definition of MSME : 

In terms of HOBC : 102/218 dt. 20-03-2009.

For accounts not falling within regulatory definition of MSME but within the new definition of SME :

In terms of HOBC: 102/119 dt.19-09-2008.


i. Primary : Hypothecation of the vehicle purchased out of the proceeds of the loan. Bank’s name as charge holder to be got entered in the books of the RTO and also the Registration certificate.

ii. Collateral : Micro and Small (Services Enterprises), can be sanctioned collateral free term loan up to Rs. 100 lakhs, subject to coverage under guarantee provided by Credit Guarantee Fund Trust for Micro & Small Enterprises.(CGTMSE) For loans above Rs 100 lakhs , suitable collateral security to be obtained depending upon the merits of individual cases.



Axis Bank offers fast track loans for SMEs under the following schemes. Loans under below mentioned products are approved subject to fulfillment of terms and conditions laid down in respective products which includes risk analysis on the Management, Business, Financial parameter








Loans upto Rs. 5 crores.


Flexible repayment options of upto 10 y

  Attractive market related interest rates


Fast processing and quick disbursement


 Manufacturing, trading and services units

  Minimum track record of three years

 Profits in the last two years

  Minimum security coverage as per the product scheme




Entity profile


Profile of the group concerns


Financials of the entity for the latest 2 years


Bank statements of the entity for the last 12 months

Office Proof of the entity


Copy of title deeds of the property with Municipal Tax Receipts and Sanction Plan

Copies of all lease and sub lease agreements in connection with the property


MOA and AOA in case of Company or Partnership Deed in case of partnership firm


Latest 2 years Personal Balance Sheets and ITRs of the directors or partners


Bank statements of the directors or partners for the last 6 months

Identity proof of all the directors or partners


Residential Proof of all the directors or partners





 Canara bank


For acquiring/adopting energy conservation/savings equipments/measures by SMEs



Units under Small and Medium Enterprises


Cost of energy for the unit should constitute not less than 20% of the total cost of production


Unit should possess energy audit report issued by an approved energy Consultant/Auditor.


Borrowal a/cs-ASCC code S1 or S2 during previous review.


Current account holders having dealings exclusively with us satisfactorily for a period of last one year

Maximum loan

Maximum Rs 100 lakhs in the form of Term loan


Prime: Assets created out of loan

Collateral: Upto Rs.5 lakhs – NIL

                Above Rs.5 lakhs, as determined by the Bank


Maximum 5-7 years including moratorium of 6 months

Guarantee cover

Cover available under CGMSE of CGTMSE available for eligible loans


10% of the project cost

Rate of interest

1% less than the applicable rate

Upfront fee

1% of the loan

Insurance cover

Assets acquired and charged as security to Bank to be insured

Special offer, if any

Grants : Bank provides 25% of the cost of Energy Audit / Consultancy charges with a maximum of Rs 25000/- to the first 100 units on a first come first served basis which is in addition to the grant of Rs 25000/- being provided by IREDA(First 100 units)

Conditions apply. The information provided above is only illustrative and not exhaustive.

RATING OF SMEs by External Agencies


Canara Bank has entered into MOU with CRISIL Ltd., SMERA (Small & Medium Enterprises Rating Agency) and Brickworks Ratings India Pvt Ltd for rating of SMEs.


The rating agencies have offered concessional rating charges to Non-Small Enterprises recommended by the Bank.


Subsidy from NSIC is available towards the rating fee in respect of Small Enterprises.

Rating of SMEs by external agencies shall ensure fast processing of loan applications and increasing credit flow to SME sector.


The rating agencies will assess the units and award the ratings on a defined scale and the ratings so awarded shall be valid for one year.






Key features



Speedy loan processing


Flexible repayment options


Simple assessment


Attractive pricing

Facilities offered:



Cash Credit and BG/LC limits for working capital requirements.


Term Loan for setting up/Refurbishing an existing unit or for purchase of fixed asset.

Period of loan

Term Loan – Upt o 120 months

Working Capital – Up to 30 months

Non Funded(BG/LC) – Up to 30 months






Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card/Aadhar Card)


Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax


Bank Statement (latest 6 months bank)


Last 2 Years ITRs (computation of income), audited  Balance Sheet and Profit & Loss a/c, if applicable


Proof of continuation (ITR/ Trade license /Establishment /Sales Tax certificate)


Other documents may be requested as per individual requirements.




Repayment of the loan is made as Equated Monthly Installments (EMI).


              You can use any one of the ways to repay the loan:




Standing instructions at your branch


State Bank of India


Purpose of SME Collateral Free Loan Scheme

1.  Working capital needs (Fund Based + Non Fund Based).

2.  Term loan for construction of Building, office, acquisition of machines / equipments including expansion and modernization of the unit.


Nature of Facilities Allowed in SME Collateral Free Loan Scheme

They are one or multipples of the following subject to bank's discretion:


Cash credit

2Term loan


Letter of Credit


Bank Guarantee


Loan Amount of SME Collateral Free Loan Scheme

Total Exposure to the unit: Upto Rs. 1.00 crore (All facilities WC, TL & NFB facilities)


Interest Rate of SME Collateral Free Loan Scheme

Attractive rates of interest. See  for updated interest rates.


Service Charges for SBI SME Collateral Free Loan Scheme

150% concession in processing and service charges. See  for updated service charge and processing fees.

Other charges as applicable.


Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) Guarantee


Borrowers eligible under the scheme will be covered under CGTMSE guarantee scheme.

The Guarantee Fee & Annual Service Fee as per the rates prescribed by CGTMSE from time to time to be borne by borrower.


Security for SBI SME Collateral Free Loan Scheme

  Security as defined by CGTMSE: “Primary Security” in respect of credit facility shall mean the Assets created out of the credit facility so extended and / or Existing Unencumbered assets which are directly associated with the project or business for which the credit facility has been extended. (i.e. Plant, Machinery, land & building pertaining to the project or business).

Guarantee: No third party guarantee is required. However in case the constitution of the borrower is proprietary or partnership, the personal guarantee of proprietor / partner is not treated as third party guarantee


Repayment of SBI SME Collateral Free Loan Scheme

 Working Capital (WC): One year, repayable on demand.  Working capital limits will be renewed every two year. However, performance of the unit and conduct of account will be reviewed annually for continuation of limits.


Term Loan: Maximum Seven Years including moratorium period.


To provide professional, efficient, courteous, diligent and speedy services in the matter of SME lending.

  • Credit facilities considered: Term Loan, Cash Credit, Bank Guarantee and Letter of Credit

  • Simplified and bilingual applications for Credit Facilities to SME Units are made available

  • Loan Application complete in all respect duly receipted and acknowledged.

  • Time Norms for disposal of loan applications:
    a. Upto Rs.25,000                                                  :2weeks
    b. Over Rs.25,000 and upto Rs.5.00 lakhs                :4weeks
    c. Over Rs.5.00 lakhs                                             :8 - 9 weeks

  • Collateral free loans upto Rs.5.00 lakh to SME units is mandatory.

  • Loans sanctioned without collateral security / third party guarantee upto Rs. 100.00 lakh and having good track record and financial position are covered under Credit Guarantee Fund Scheme for SME i.e. Credit Guarantee Trust Fund Scheme for Micro & Small Enterprises (CGTMSE)

For covering the advances under Credit Guarantee Funds Scheme, a Guarantee Fee @ 1.50% of credit facility sanctioned for a period of 5 years (borne by bank) and Annual Service Fee @0.75% of outstanding amount as on 31st March every year is payable (50% of the annual service fee borne by the Bank).
The Trust shall provide guarantee as under:


Maximum extent of Guarantee where credit facility is


Upto Rs.5 lakh

Above Rs.5 lakh upto Rs.50 lakh

Above Rs.50 lakh upto Rs.100 lakh

Micro Enterprises

85% of the amount in default subject to maximum of:
Rs.4.25 lakh

75% of the amount in default subject to maximum of:
Rs.37.50 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.62.50 lakh

Women entrepreneurs/ Units located in North East Region (incl. Sikkim)

80% of the amount in default subject to maximum of:  Rs.40 lakh

Rs.40 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.65 lakh

All other category of borrowers

75% of the amount in default subject to maximum of: Rs.37.50 lakh

Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh subject to overall ceiling of Rs.62.50 lakh

  • To reduce the Entrepreneurs dependence on Term lending Institutions, composite loan upto Rs.100.00 lakhs is sanctioned to SME Units.

  • Loan quantum: Minimum 20% of projected annual sales turnover (Nayak Committee norms)

  • Comfortable Margin option is available as under:
    Upto Rs.25,000          : NIL
    Above Rs.25,000        :25%

  • Laghu Udhyami Credit Card: Hassle free credit upto Rs.10.00 lakhs is provided through this Card.

  • Mahabank Artisan Credit Card: Credit upto Rs.2.00 lakhs - to Artisans. Considering the nature of the activity, Cash disbursement is allowed.

  • Finance is made available at most attractive rate of interest. The same are as under:


I] Advances to Micro & Small Enterprises having total limits (Fund + Non fund) upto Rs. 25.00 lakhs:


Rate of interest

a) For all new accounts

Base Rate + 1.25% (at present 9.50%)

b) For existing MSME accounts which are yet to complete the first year of advance as per earlier guidelines**

a) Fixed ROI as per earlier guidelines will be 
applicable till expiry of the first year of  advance    b) on expiry of the first year of advance at Base 
Rate + 1.25% (at present 9.50%)

c)  In respect of advances having total limits above Rs. 2.00 lakhs, credit rating will have to be done as per extant guidelines.  Henceforth, ROI will not be linked to Credit Rating for advances to Micro & small Enterprises having total limits upto Rs. 25.00 lakhs.  However, Credit rating will continue to be done for risk perception in respect of advances having total limits above Rs. 2.00 lakhs and upto Rs. 25.00 lakhs.

II] Advances to Micro, Small and Medium Enterprises having total limits (Fund + Non fund) above  Rs. 25.00 lakhs:

Rate of interest in respect of all the new MSME advances having total limits above Rs. 25.00 lakhs will be decided as per the Credit Risk Rating.  Fixed ROI for the first year as per earlier guidelines will not be applicable for new advances hereafter.

In respect of existing advances, stipulated interest rates for the first year of advance will continue as per earlier guidelines.  On completion of first year of advance, new rates will be applicable as per their Credit Risk rating as given hereunder.

The following structure of interest rates will be applicable from entry level point for all the new accounts having total limits above Rs. 25.00 lakhs and existing accounts having total limits above Rs. 25.00 lakhs, which have completed first year of advance. 

The same interest rates are applicable to all the advances availing working capital facilities and / or term loan facilities.





Baroda SME Loan Pack



 provides single line of credit for meeting SME borrowers� working capital as well as long term requirements within the overall limit approved by the bank.


  • To provide hassle free credit for working capital (fund based and non-fund based) as also long term requirements, taking into account nature of business, cyclical trends, cash flow projections, peak time requirements and any eventuality of unforeseen spurt in the business.


  • All Enterprises, i.e. Micro, Small & Medium Enterprises, as defined under MSMED Act, 2006, and other entities with annual sales turnover up to Rs. 150/- crores exclusively banking with our bank/new borrowers desirous of having sole banking arrangement with our bank.


  • 4.5 times of borrower�s tangible net worth as per last audited Balance Sheet, or, Rs. 5.00 Crores, whichever is lower.

MARGIN : 25%.


  • As per credit rating of the borrower.


1.Exclusive charge on the assets of the enterprise.

2.Personal Guarantees of all promoter Directors / Partners.

3.Charge on the unencumbered personal properties of the partners, promoter Directors, wherever applicable. 

4.Third party guarantee in case of credit line above Rs.100.00 lacs to Micro & Small Enterprises as per Regulatory definition.

5.Any other collateral for the credit line above Rs. 25.00 lacs in case of other Enterprises, i.e. Medium Enterprises and Enterprises based on the turnover criteria to maintain asset coverage ratio above 1.25.


  • Loans upto Rs. 100/- lacs to Micro & Small Enterprises will be covered under Credit Guarantee Fund Trust Scheme. 












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