CREDIT GURANATEE FUND TRUST SCHEME FOR MICRO & SMALL ENTERPRISES (CGTMSE)

SALIENT FEATURES: CGTMSE was set up jointly by GOI and SIDBI The scheme is extended to all New and Existing units of Micro and Small Enterprises The scheme is available both under Manufacturing Sector and Service Sector Eligible loan limit is up to Rs. 100.00 lakhs No collaterals including the third party guarantee The loans to Micro enterprises up to Rs.5.00 lacs the max guarantee cover will be 85% of amount in default/Max 4.25 lakh and loans to MSE for credit facility upto Rs.50 lakh operated by women entrepreneurs are covered up to 80% of amount in default/max Rs.40 lakh The Maximum guarantee cover where credit facility above Rs.5 lakh upto Rs.50 lakh is 75% of amount in default/max Rs.37.50 lakh Above Rs.50 lakh upto Rs.100 lakh Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh/max 62.50 lakh One Time upfront guarantee fee has to be paid within one month from date of first disbursement/demand advice date whichever is later and Annual Service fee at specified rate on the credit facility has to be paid to the Trust before 31st of May every year Top

Loans to Micro & Small Enterprises (MSEs)

Eligibility Any individual / partnership firm / Public or Private Ltd. Companies desirous of promoting MSEs (Manufacturing sector) with investment in Plant & Machinery not exceeding Rs. 5 crore and Medium Enterprises with investment in plant & Machinery is above Rs. 5 Crore and upto Rs. 10 crores. Extent of Finance Need based (both fund based and non-fund based) Margin Working Capital/ Medium Term Loan a) No margin up to Rs.25000/b) Credit limit over Rs.25000/Flexible approach:15% - 25% depending on the merits of each case Security Primary: i) Assets created out of Bank finance Collateral:

Obtention of collateral Security exempted Up to Rs. 5 lacs Over Rs. 5 lacs and up to Rs. 25 lacs, based on good track record and satisfactory financial position Over Rs.25 lacs at the discretion of the Bank Interest As per prevailing rates from time to time

Export Finance

Establishment of Letter of Credit Pre-shipment finance Post-shipment finance Assistance against Duty draw back Top

Small Business Finance Retail Trade- Advances to Retail Traders (Other than Fertilizers & Mineral Oils)
Eligibility All types of Retail Traders are eligible. Persons who propose to start retail trade business, fair price shop, consumer co-operative stores are also eligible for finance Extent of Finance Credit limits up to Rs.20 lacs Rate of Interest As per prevailing rates from time to time Margin No margin up to Rs.25000/15 to 25 percent, for credit limits exceeding Rs. 25000/Security Assets created out of Banks finance Collateral security as per Banks norm Top

Small Business Enterprises

Eligibility Individuals and firms managing a business enterprise established mainly for the purpose of providing any service other than professional services. Extent of Finance Individual limits for working capital will be fixed depending upon the requirement of activities pursued. Advances for acquisition, construction, renovation of House Boats and other tourist accommodation will be financed. Advances for distribution of mineral oils will also be considered under this category Rate of Interest As per prevailing rates from time to time Margin No margin up to Rs.25000/15 to 25 percent for credit limits exceeding Rs.25000/Security Assets created out of Banks finance Collateral security as per Banks discretion Top

Professionals & Self-Employed persons

Eligibility Medical practitioners including Dentists, Chartered Accountants, Cost Accountants, practicing Company Secretary, Lawyers or Solicitors, Engineers, Architects, Surveyors., Construction Contractors or Management consultants Extent of Finance Professional and self employed persons are eligible for assistance up to Rs.10 lacs of which not more than Rs.2 lacs should be for working capital requirements. However, in case of professionally qualified medical practitioners, financial assistance will be up to Rs.15 lacs for working capital limits for setting up practice in semiurban and rural areas Rate of Interest As per prevailing rates from time to time Margin No margin up to Rs.25000/15 to 25 percent for credit limits exceeding Rs.25000/Security Assets created out of Banks finance Collateral security as per Banks norms Top

Transport Operators
Eligibility Advances to Small Road and Water Transport operators. Extent of Finance Not exceeding Rs 200 lakhs Rate of Interest As per prevailing rates from time to time Margins No margin up to Rs.25000/15 to 25 percent for credit limits exceeding Rs.25000/Security Assets created out of Banks finance Collateral security as per Banks norm Top

Laghu Udyami Credit Card Scheme

Eligibility Small businessmen, retail traders, artisans, Small industrial units including those in Tiny sector, Professionals and self employed persons, enjoying working capital up to a limit of Rs 10 lacs. Limit Fixed at 20% of annual sales turnover declared in Income Tax/Sales Tax returns Professionals and Self- employed persons are eligible for credit limits up to 50% of their gross annual income, as declared in their income- tax return (The assessment norms in vogue is as per the Nayak Committee recommendations)

For units above Rs. 2 lacs and up to Rs. 10 lacs, scoring model method will be followed.Those who score more than 60% would qualify for coverage under the scheme Primary security Hypothecation of stock in trade, receivables, machinery, office equipment etc., Collateral Security As decided by the Bank Margin 25% Validity Valid for 3 years. Half-yearly review will be done on the basis of last 12 months turnover in the account Interest As per prevailing rates from time to time Insurance Insurance cover is waived for limits up to Rs.25000/-. Top

RICE MILL PLUS

We have introduced a New product named as RICE MILL PLUS with a liberalized approach viz lower margins, lower rate of interest linked to extent of collaterals made available. The scheme envisages coverage of all existing units with proven track record and take over of units subject to compliance with takeover norms. The new units can also be accommodated on case to case basis.

We have adopted simplified scoring model. The limit upto and inclusive of Rs.5.00 lakhs should be collateral free and covered under CGTMSE. The rate of interest is 9% p.a for such advances Top

CONTRACTOR PLUS
CONTRACTOR PLUS has been introduced under SME segment to fund the work bills of BBMP, all Municipal Corporations, Zilla Parishats, BWSSB and other Statutory Bodies all over Karnataka state provided they are agreeable for the tripartite agreement. Instead of LCs, Bills are backed by tripartite agreement. Contact your nearest Branch of State Bank of Mysore or Chief Manager State Bank of Mysore Small and Medium Enterprises Department H .O.: K.G.Road, Bangalore - 560009, INDIA Phone: 91 80 22353901 to 22353909 ; 22353473.extn.377 Fax: 91 80 22353458 Email: cmsib@sbm.co.in