Small Scale Industries (SSI) Finance Schemes
1️⃣ Purpose
✅ Finance for:
- Setting up new SSI units
- Expansion, modernization, renovation
- Purchase of land, building, machinery, equipment
- Working capital facilities
2️⃣ Eligibility
✅ Eligible Units:
- Small Enterprises (SSI): Original investment in plant & machinery up to ₹500 lakh
- Micro Enterprises (Tiny Units): Investment in plant & machinery up to ₹25 lakh
✅ Technically Qualified Entrepreneurs:
- Technicians/craftsmen with adequate technical/practical experience.
3️⃣ Amount of Loan
✅ Term Loan: Need-based.
✅ Working Capital Loan: Liberal sanction up to 20% of projected annual turnover.
✅ Composite Loan Limit: Up to ₹100 lakh (Term + Working Capital).
4️⃣ Margin Requirements
5️⃣ Repayment Period
Term Loan: Up to 7 years, based on projected profitability.
6️⃣ Collateral Security
✅ Advances over ₹25,000 require collateral security (in addition to hypothecation of stock/machinery) based on track record and financials.
✅ As per H.O. guidelines.
Loans to Craftsmen & Qualified Technician Entrepreneurs
Purpose
✅ For:
- Acquisition of fixed assets (machinery, tools, land, building)
- Working capital within ₹3 lakh (individuals) / ₹5 lakh (partnerships/companies)
Eligibility
✅ Technically qualified entrepreneurs or those with adequate technical/practical experience
.
Loan Amount
- Max ₹3 lakh (individuals)
- Max ₹5 lakh (partnership firms/companies)
(In ancillary units/joint financing: up to ₹5 lakh (individuals), ₹10 lakh (groups))
Repayment
- 5–7 years including moratorium.
Location Preference
✅ Preferably in industrial estates/zones/undeveloped areas declared by the State Government.
✅ Accommodation preferably on rental/hire purchase to prioritize machinery & equipment purchase.
Loans for Workshops / Garages
Purpose
Finance for technology upgradation in automobile workshops/garages:
- Purchase of capital equipment
- Need-based civil works & land
- Technical know-how, designs, drawings
- Upgrading technology & products (quality improvement)
- Cost of TQM, ISO 9000 certification
- Preliminary & pre-operative expenses (up to 10% of project cost)
Project Outlay
✅ Project outlay on fixed assets + above expenses should not exceed ₹10 lakh (as per Micro Enterprises ceiling).
Eligibility
✅ Small Scale Service Units:
- Modernization/technology upgradation purpose
- At least 1 year operational history
- Not in default to the bank
✅ Land & building cost should not exceed 25% of modernization/upgradation outlay.
Loan Features
✅ Need-based loan
✅ Minimum 10% promoter’s contribution
✅ Repayment: 5–7 years (excluding moratorium)
✅ Working capital: Continuing, subject to annual renewal
Collateral Security
✅ No collateral/third-party guarantee for loans above ₹50 lakh under CGTMSE.
✅ Otherwise, collateral/guarantee only if:
- Primary security is inadequate
- Other valid reasons (not as a routine)
Benefits for Borrowers:
✅ Fast disbursal for eligible SSI units
✅ Flexible collateral norms under CGTMSE
✅ Focus on modernization & quality improvement
✅ Affordable interest rates with structured margins
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