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

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Micro and Small Enterprises (MSEs)– Definition of Micro, Small and Medium Enterprise Manufacturing and Service Segments.

	Manufacturing Sector	Services Sector
	Micro Enterprise	The investment in Plant and machinery ( Original Cost) does not exceed Rs 25 lakhs	The investment in Equipment does not exceed Rs 10 lakhs
	Small Enterprise	The investment in Plant and machinery ( Original Cost)is more than Rs 25 lakhs but does not exceed Rs 500 lakhs	The investment in Equipment is more than 10 lakhs but does not exceed Rs 200 lakhs
	Medium Enterprise	The investment in Plant and machinery ( Original Cost) is more than 500 lakhs but does not exceed Rs 1000 lakhs	The investment in Equipment is more than Rs 200 lakhs but does not exceed Rs 500 lakhs

Business Loans (Small Scale Industries) – CGTSI

ING offers loans to Small Scale Industries at competitive interest rates without any collateral security. Credit Guarantee Fund Trust for Small Industries [CGTSI] ING is one of the member lending banks for CGTSI. ING Ltd offers loans of up to Rs 25 lakhs to SSI units under CGTSI at competitive interest rates without any collateral security and / or third party guarantee. In addition the guarantee fee payable to CGTSI would be debited to the account. Minimum Loan Amount: No Minimum Amount Maximum Loan Amount: Rs 25 lakhs Eligibility: The SSI units engaged in activities like manufacturing, processing or SSSBEs, including Information Technology and / or Software industry are eligible.

Guarantee fee payable to CGTSI:

One time Guarantee fee of 2.5% of the credit facility sanctioned. Annual Service fee of 1% of credit facility on the outstanding loan amount as on March 31 each year.

Collateral: No additional collateral is required For more details, write to us at

ING Vysya Bank Limited

Interest Subsidy Agro Business

Interest Subsidy

The entrepreneur is required to furnish information in the application form for availing assistance for agro industrial project, agri infrastructure project and center for excellence. He is required to prepare the detailed project report and get it appraised by the financial institution providing term loan for the proposed project. The interest subsidy shall be granted towards interest on term loan from nationalised banks and financial institutions recognised by Reserve Bank of India. In case the term loan is granted by a co-operative bank, the entrepreneur is required to get the project appraised by GITCO or such organisation nominated by GAIC. The cost of the appraisal shall be borne by the entrepreneur.

The entrepreneur shall get back ended interest subsidy after the project has commenced the commercial production. The certificate from the bank/ financial institution is required to be submitted before disbursement of subsidy can take place. The interest subsidy payable to the entrepreneur will be sent directly to the bank / financial institution.

SME pharmas may get interest subsidy

THE government may provide an interest subsidy to small and medium-size (SME) pharma companies to upgrade their facilities in order to meet stringent quality protocols. This particular proposal in the draft pharma policy is getting support from different wings of the government. The Prime Minister’s Office is keen to take forward the proposal for extending 5% interest subsidy to SMEs facing a fund crunch in order to meet the health ministry’s revised good manufacturing practices (GMP). A group of ministers (GoM) reviewing the new pharmaceutical policy is likely to take a decision on the issue soon, an official source said. The Planning Commission has already accorded an in-principle approval to provide Rs 560 crore for the scheme in the Eleventh Plan. The proposal is likely to get a goahead even as finance ministry cautioned the government on the budgetary implications of providing numerous fiscal incentives proposed in the draft policy. Once implemented, the interest subsidy scheme is likely to benefit close to 2,000 SMEs drug makers. The scheme would also come to the rescue of drug makers in Gujarat and Madhya Pradesh, several of whom have closed down due to lack of capital while others are struggling to find resources to meet the new GMP requirements. Several companies have also defaulted on loan repayments due to paucity of funds. The new GMP norms notified by the Union health ministry became mandatory with effect from July 1, 2005. The new requirements are comparable with WHO GMP norms. While the new norms have helped in standardising drugs produced by the SME manufacturers to those available elsewhere in the world, the exercise has substantially increased the upgradation cost for manufacturers. It is felt by government officials that low-cost advantage of SME drug makers should be protected in the larger national interest by providing suitable fiscal incentive in the form of an interest subsidy. As per a report of the Development Commissioner (SSI), contribution of SSIs in Indian Pharma market is 50% by volume and 30% by value.

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006

As per GR 2006 of MSMED.

SSI Registration, Small Scale Industry

Section 8 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides for filing of memorandum by a Micro, Small or Medium Enterprise.  Sub-section (2) of section 8 stipulates that the form of the Memorandum, the procedure of its filing and other matters incidental thereto shall be such as notified by the Central Government.

SSI Registration

Small Scale Industry Registration in Gujarat

We are providing consulting service for Small Scale Industry Unit for Manufacturer and Exporter.

As per Government GR 2006 all Small Scale Industries has to re-register as SSI UNIT.  Here those who has registered before 2006 has to re-register themselves in SSI Unit.

Get benefits in Government Subsidy, Support, etc.

Register SSI Unit | SSI Registeration in Gujarat