Hello sir, I am Om. I want you to help me by giving me some information about the business loans for the Micro, Small and Medium Enterprises (MSME). Can you give me some details about it?

As you have asked about the business loans for the Micro, Small and Medium Enterprises (MSME), I am giving you information about it, check below for the details

Time norms:
Time norms for disposal of loan applications from the date of receipt of application complete in all respects:
For loans upto `5.00 lacs Within 2 weeks
For loans above `5.00 lacs and upto `25.00 lacs Within 4 weeks
For loans above `25.00 lacs Within 6 weeks

Margin requirements
Upto `25,000 Nil
Above `25,000 15% – 25% as determined by Bank

Collateral Security:
No Collateral Security for Micro & Small Enterprises for loans upto `10.00 lacs
Collateral security may be waived for upto `50.00 lacs based on good track record and financial position of the unit.

Working Capital Limit:
Minimum 20% of projected annual sales turnover upto limits of `500 lacs [i.e. 20% of projected turnover] and Projected balance sheet method for limits above `500 lacs for MSME units.

Adhoc Limit Facility:
10% of the limit or `10 lacs whichever is lower to meet the contingencies.

Renewal of Working Capital Account:
Once in 12 months.