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Old November 20th, 2017, 05:01 PM
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Join Date: May 2011
Default Re: SME Loan From State Bank Of India

State Bank of India is a pioneer in SME financing in India. As a bank, it has been playing a critical role in the overall growth and development of the SME sector.

Pradhan Mantri Mudra Yojana


• Working capital (Fund Based).
• Term loans for all business purposes.


• Individuals and Small business units with a business plan for non farm income generating activity in manufacturing and services sector whose credit requirement is less than 10 lakhs are eligible for availing loans under PMMY.
• Borrower should not have defaulted to any financial institution in respect of loans availed earlier.


The PMMY loans are eligible under 3 categories

• Shishu : covering loans upto 50,000/-
• Kishore : covering loans above 50,000/- and upto 5 lakh
• Tarun : covering loans above 5 lakh to 10 lakh

Quantum of Finance-

Total Exposure to the unit/Customer: Maximum upto Rs. 10 Lakhs as per scheme under which borrower is eligible.


Loan amount Processing Charges Margin
Upto Rs.50000 NIL NIL
Rs. 50,001 - Rs. 10 lacs 0.50% of Loan amount
(in addition Service Tax as per
applicable rates to be recovered)

• Other charges as applicable.

Interest Rate

Interest Rates are linked to Base Rate (BR at 9.30%)

• CGTMSE covered accounts - BR+200 bps i.e. 11.30% pa (As on 10.03.2016)
• Non-CGTMSE accounts - BR +230 bps i.e. 11.60% pa (As on 10.03.2016)

CGTMSE Guarantee:

• All borrowers under PMMY with activity as Manufacturing and services are eligible to be covered under CGTMSE guarantee scheme.
• Retail trade is not eligible for CGTMSE coverage


• Primary Security: Hypothecation of stocks / machinery / movables acquired out of Bank's finance.

• Collateral: No collateral security to be obtained for all loans upto Rs. 10 lacs extended to units in the MSE sector as per RBI guidelines.

Repayment Period

• Working Capital : Repayable on demand.
• Term Loan: 3 - 5 years including a moratorium of upto 6 months.

Answered By StudyChaCha Member
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