Micro / Small Enterprises Funding Scheme

1. Scheme: The scheme is to extend financial assistance to New / Existing Units in Micro and Small Enterprises with overall project outlay of Rs.50.00 lakhs.

2. Eligibility:

  • New Enterprises in Micro / Small scale sector for manufacture, preservation or processing of goods irrespective of location and service sector projects like Hospitals, Fast Food restaurant etc. except Small Road Transport Operators [SRTOs].

  • Existing Micro and Small Scale Industrial Units and Service Enterprises, undertaking Expansion, Modernization, Technology Upgradation and Diversification irrespective of locations.

3. Purpose:  For Creation of Fixed Assets

4. Quantum of Loan:

  • For New Units, term loan 80% of Project cost subject to a maximum of Rs.40.00 lakhs will be considered.

  • For existing units, term loan of 75% of Project cost subject to a maximum of Rs.37.50 lakhs will be considered.

5. Project Cost:  Project Cost shall not exceed Rs.50.00 lakhs in case of New Unit. In respect of existing units, Project Cost including existing project outlay shall not exceed Rs.50.00 lakhs

6. Promoter's Contribution:  The Minimum Promoter's contribution shall be fixed at 20% of the project cost.

7. Debt Equity Ratio :  DER for new Units is 4.00 : 1.00 and for existing units is 3.00 : 1.00.

8. Repayment Period :  The loan repayment period shall not exceed 6 years including moratorium of 6 - 24 months.

9. Collateral Security : The collateral security offered shall be stipulated as per the existing policy guidelines.

Click here for Rate of Interest

Page modified on 05.04.2011


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