The salient features of the scheme are as follows:

1. Purpose
   
   
The MSME Devt. Act 2006 has classified Industrial Enterprises into micro, small and medium Enterprises. This loan scheme is intended to extend term loan assistance to industrial units coming under "Micro Enterprises" in the manufacturing sector. Micro enterprises in the manufacturing sector is defined as enterprises with investment in plant and machinery upto or below Rs. 25 lakhs. All industrial activities which are not prohibited or not included in the negative list are eligible for getting such assistance. Expansion / modernization / diversification programmes of existing units will also be considered under this loan scheme. Acknowledgment of filing of EM (Entrepreneurs Memorandum) from DIC or equivalent registration is necessary for availing such loan assistance.


2. Upper Loan Limit : Upto Rs. 25 lakhs.
   
   
3. Repayment period : 3 years (including gestation period upto 6 months).
   
   
4. Existing loans :


• Gross interest rate : 13.5%
• Effective Interest rate : 8% (after allowing rebate of 4.5% and concession upto 1% for satisfactory credit rating).


5. First disbursement on or after 1/10/2011 :


• Gross interest rate : 15.5%
• Effective Interest rate : 12.5% (after allowing rebate of 2% and concession upto 1% for satisfactory credit rating).


6. Processing Fee : 0.5 % of loan sanctioned.