MSME/SME Loans

In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:

(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprises are defined in terms of investment in Plant & Machinery.

(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

Loans will be available for :

Manufacturing Enterprises i.e. enterprises engaged in the manufacture or production, processing or preservations of goods with investment in Plant & Machinery.

Service Enterprises i.e. Enterprises engaged in providing or rendering services and whose investment in equipment as specified above. (Original cost excluding Land & Building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006).

Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investments criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.

The loans and advances offered for MSME Units can be used for the basic needs of
  • Acquisition of factory, land and construction of building spaces.
  • Purchase of plant and machinery including lab equipment, testing equipment, etc.
  • Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills.
  • Temporary additional assistance for meeting the urgent needs of raw material.
  • Additional monitory assistance for any eligible purpose.