Loan schemes/Interest Rates

The Corporation would endeavour to extend comprehensive services including term loan, working capital and special schemes that may be required for benefit of the SME sector. The Interest and principal are to be paid in monthly rests for all schemes. The extent of financing is based on the type of the project and credit rating. Interest rates, extent of financing and maximum period of loans are given below:


Sl. No. Name of Scheme Interest rate gross linked to PLR Rebate on prompt repayment
1 Scheme for Term Loan for industrial activities
  a) MSME Units in Manufacturing sector except crusher units, SC/ST Entrepreneurs, Renewable energy projects 14.50% 2.00%
  b) Financial Assistance to MSME Units in Manufacturing sector
  b-i) Loans upto Rs.100 lakhs 14.00% 2.00%
  b-ii) Loans above Rs.100 lakhs 14.50% 2.00%
  c) Loans to Crusher projects 14.50% 1.50%
d) MSME Units in Service sector 15.00% 2.00%
e) Energy Saving Projects 15.00% 7.50%
2 Working Capital Revolving Fund Loan / WCTL
  a) MSME Units in manufacturing Sector except Crusher units 14.50% 2.00%
  b) Crusher Projects 15.50% 1.50%
  c) Other Units 15.50% 2.00%
3 Construction Activities and Housing Projects 16.50% 2.00%
4 Short Term Loan
  a) CRE Sector 16.50% 1.50%
  b) Crusher Units 15.50% 1.50%
  c) Other Sectors 15.50% 2.00%
5 Special Working Capital Assistance to Hotels 15.50% 2.00%
6 Scheme for Financial Assistance to contractors 15.50% 1.50%
7 Scheme for Financial Assistance for producing Films and TV serials 16.50% 1.50%
8 Scheme for Modernization, Upgradation and Expansion of Existing Cinema Theatres/Establishment of New Multiplexes 15.00% 2.00%
9 Vehicle Loan 15.50% 2.00%
10 Working Capital Term Loan
  a)MSME units in manufacturing Sector Except Crusher units 14.50% 2.00%
  b)Crusher Units 15.50% 1.50%
  c)Other Units 15.50% 2.00%
11 Modernisation / expansion scheme
  a) Manufacturing sector except Crusher 14.50% 2.00%
  b) Crusher units 14.50% 1.50%
  c)service sector 15.00% 2.00%
12 Special revolving fund for existing customers 15.50% 2.00%
13 Receivable Finance Scheme 16.50% 0.00%

1.For all existing loan which are availing interest reduction based on credit rating, the same has to be reviewed annually and at the time the account goes sub-standard.
2.Loan to existing Micro Finance Institutions will be at 14%.
3.In case of any change in market conditions, trends, cost of funds, or any other new development, interest rates can be varied up to 1.00% (increase or decrease) for any scheme by MD.
4.The existing loans extended to NRK scheme will continue to carry the existing rate of interest.
5.Interest reduction based on credit rating of 65% and above can be allowed by the Branch Head and that of 70%/75% and above can be allowed by MD on case to case basis.
6.For all schemes penal interest @ 2.00% will be charged for default.
7.SC/ST entrepreneurs will be charged interest @ 14.50%(0.50% below PLR) for all schemes. The interest reduction of 0.50% from PLR will be available to only enterprises owned and administered/managed by SC/ST entrepreneurs. Ceiling for financial assistance under this scheme will be Rs 50.00 lakhs.
8.Special rebate of up to 1.00% can be allowed by the MD Level Committee on a case to case basis.
9.The net effective rate for manufacturing sector shall not be less than 11.50% and that for service sector shall not be less than 12.00 %

A. Activities which can be considered in MSME Service Sector
a.Hotels, resorts, restaurants, cafeteria, amusement parks and other tourism related activities
b.Hospitals, nursing homes, etc.
c.Display exhibition/convention centres, Business/incubation centres, Kalyanamandapam, Multiplexes, Theatres, Video Parlours, etc.
d.Cold storage facilities.
e.IT/ICT enabled as well as logistic services.
f.Infrastructure facilities such as industrial parks/estates (including modernization/refurbishing), Common effluent treatment plants, road construction benefiting industries, etc.
g.Fisheries and aquaculture.
h.Sericulture and horticulture.

B. Activities which can be included in the MSME manufacturing sector.
a.Manufacturing units which produce Udhyog Aadhar registration certificate within six months of start of commercial operation.
b.Renewable energy, Solar energy and Wind energy projects.

C. CRE Projects
a.Shopping/Commercial Complex
c.Apartment Complex

Powered by Invis Multimedia