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MSME JHALAK

2020
लॉिजक

Research & Publication Section


STAFF TRAINING COLLEGE, BENGALURU
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
1. CANARA MSE Business related needs of Max – 100 lakhs. MARGIN- TL- 20%, TL Max. 7 years-
UNNATI MSE. TL - 80% of the project cost. PC & upfront fee : Normal Charges. monthly
380,383,425/20 Scheme extended till WC: As per turnover method. CGTMSE : charge to be borne by the instalments
13. 132/2015 30/09/2020. In case of book debts: Age of the book customers only. inclusive of
136/2016,267/2 debts not to be more than 90 days & 25% STOCK STATEMENTS: Simplified OCC holiday period
017,313/2018,3 Eligible : Individuals, margin to be maintained. stock statement book debt statement of max. 6
13/18,603/18, proprietorship, once in a quarter. Detailed- Once, as months.
618/2019) partnership, private Prime Security- Assets created. on March every year WC limit is valid
limited company, trusts, Hypo./Mortgage of assets of borrower Inspection of stocks & unit visit: At for 24 months
FOR BUISNESS HUF are eligible only. sanction and once in Quarter. with yearly
NEEDS OF MSE Not Eligible -Education Collateral security- NIL, Mandatorily to ROI- Floating review.
institute, SHGs, JLGs and be covered under CGTMSE. No concession/ waiver shall be
units engaged in Retail permitted.
trade activity.
Satisfactory tract record ROI Concession= Women- 0.5%,
2 year of existing CGTMSE Covered account- 0.25%
customer. Satisfactory
OPL from New Customer

2. MSME VAHAN Brand new vehicles as Quantum : 90% of the “On Road Cost” CGTMSE : AGF shall be borne by the 2 wheelers:
296/2014,246/2 business assets/ business value OR Average of last 3 years Net borrowers, maximum 60
016 purpose only. (Two Profit, Whichever is lower, with a No DD against invoice, payment EMIs
wheelers, Passenger maximum of Rs. 25.00 lakhs. Beyond this directly to the vendor/supplier by way
Existing and new cars/vans/ Jeeps). by Circle Head on case to case basis. of RTGS/NEFT. 4 wheelers:
customers under Not Eligible : Goods Out of purview of Agg. Of Limit of party. Processing charges: maximum 84
MSME including carriers Security: Hyp. Of assets financed. Upto Two wheelers – 0.25% - min. Rs 250/- EMIs
retail traders. 10 lakhs CGTMSE is mandatory. Above 10 and max. Rs. 1000/-
lakhs borrowers may offer 100% collateral Four wheelers – 0.25% - min. Rs.
security or CGTMSE Cover. 1000/- and max Rs.5000/
ROI concession: Not available to
Women Entrepreneur & CGTMSE
covered account.
3. “CANARA To finance new vehicles Quantum : Requirement of 5 new vehicles Overall DSCR: Min 1.50 should not fall Maximum 60
CARAVAN” (Small, Light, Medium, or Min amount of Rs 25.00 lacs below 1 any of the years covering months
419/2014, Heavy Commercial Maximum Rs.5.00 crore. entire repayment period). (inclusive of
389/2016, Vehicles, Passenger ROI: Linked to ICRR. holiday period)
454/2016 vehicle). 3 years of Prime Security: Hypothecation of assets ROI concession: 0.50% to 1.00% based
Experience is required. financed. on scores
Existing transport Collateral security: Up to Rs.1.00 crore : Takeover cases not allowed.
operators (for Min 25% collateral security by way of land Up-front fee: For the score above 75%
goods and and building or CGTMSE cover. as per scoring model (Annexure II)

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
passengers). Above Rs.1.00 crore: Min 25% collateral Upfront fee Concession – 0.25% from
Individuals / security by way of land and building. the applicable rate.
firms/Co./trust / Margin: Min 5% to 50% based on score
institutions and cost
/associations Holding valid driving licence of self or
drivers engaged.
4. “CANARA MSE Credit to MSE Quantum: Urban & Metro Centers: Rs. 200 Term Loan component : Working Capital
SMART” professionals with Lakhs (Max.) 1. 75% of the total project cost OR Tenability: up
295/2014 minimum 2 years of Others Centers: Rs. 50.00 Lakhs (Max.) 2. 5 times of the net annual income as to 3 years.-
experience for business Loan for construction 80% of eligible loan per latest IT returns for Loans up to annual review
Professionals like need including TL and amount, Rs.10.00 Lakhs OR
architects, civil working capital. Credit for furnishing of office premises / 3. 10 times of the net annual income Term Loan : 5
engineers, Equipment purchase maximum 20% of as per latest IT returns for Loans to 10 years
chartered eligible loan amount or 20 lakhs. above Rs.10.00 Lakhs. inclusive of
accountants, WC shall not exceed Rs. 5.0 lakhs. Prime Whichever is less with a maximum repayment
cost accountants Security: Assets created or Mortgage of ceiling. holiday
and company immovable property. Working Capital (By way of secured
secretary. Collateral Security: Loans up to Rs.100.00 OD): 10% of the previous year’s
Lakhs: Nil & mandatorily covered under receipts / expected receipts, subject
CGTMSE. to maximum ceiling amount of
If not covered under CGTMSE: Minimum Rs.5.00Lakhs. (WC limits alone are not
collateral by way of land and building at to be considered).
25% of the loan amount. Stock Statement & Godown
Inspection : Quarterly
ROI: As per scheme
ROI Concession: 0.50% to women
entrepreneurs
0.25% to CGMSE covered account.
5. MSE VIJETA To meet business related QUANTUM: Above Rs. 10.00 lakhs and up Inspection: Half yearly TL: Maximum 84
298/14 needs like business to Rs. 2.00 crores. Inspection charges: Waived months.
180/2016 premises, machinery, Security: - Hyp. Of assets created. Stock Statement: Simplified stock WC: Validity 2
,542/2017 and equipment’s, Collateral – NIL. To be covered under /book debt statement once in 6 years subject to
(MODEL I vehicles and working CGTMSE. months and detailed once in a year. annual review.
discontinued- capital requirements (For Traders, suitable collateral to the .
only Model 2 including Retail Traders. extent of 60% of the loan amount to be CGTMSE AGF, to be borne by
exists) Satisfactory tract record obtained). Upto 1.00 Crore- cover under customer
women for last 2 years- both CGTMSE or EMT of property to the extent
enterprenuers. with financing branch of 60% of loan amount. ROI: Schematic PC/Upfront fee: 75% of applicable
Individuals, and financials. ROI Concession: 0.25 % concession to
Proprietorship, New customer with CGTSME covered accounts
Partnership, satisfactory OPL

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
LLP, Corporate RT also eligible
Bodies Loan sanctioned upto MR
In case of under CRR.
Partnership Firm,
the majority of
partners should
be women and in
case of
Companies the
management
should be
controlled by the
Women
6. CANARA MSME Credit for business 1. Mfg Units: Rs. 1000 Lakhs. Not eligible for CGTMSE. Working
CAP requirement of MSME 2. Service Units: Rs. 500 Lakhs Subject to Stock Statement/Stock Inspection - Capital: One
551/2015 borrowers. Minimum Rs.10 lakhs. Quarterly year.
301/2014, Both WC & TL against the Security: Mortgage, (Primary and Stock Audit: Low and Normal Risk Term Loan: 5 to
131/2017, security of collateral) A/Cs: Waived upto 5.00 Cr 10 years
268/2017, unencumbered Land and Value of security: - Urban & Metro Moderate Risk: Every Year. inclusive of
30/2019 Building belonging to Properties: Mfg. unit Min. 100%, Service Product Code-Running Account: 256 & holiday period.
promoter or close Min. 125% of loan amount 261, TL: 766 and 768.
MSME relatives.. Semi urban Properties - Mfg. unit Min. 50% of the applicable upfront fee/
(MANUFACTURIN Located in (i) 125%, Service Min. 150% of loan amount processing charges. In respect of
G/SERVICE) properties which are less than one
(excluding
Metro (ii) Urban Select Rural Properties located close to year old, valuation of the property
Educational (iii) Semi-Urban (iv) Metro/Urban/Semi Urban – 150% of loan shall be taken as “sale deed value” or
institutions, Properties located in amount for Mfg and Service units subject “guideline value” whichever is less.
SHG, JLGS). select rural areas to (a) within 20Km radius from nearby Margin on term loan, Working capital
subject to availability of Metro/Urban (b) within 10Km radius from loan and non fund based limit : 20%,
security (v) Properties Semi Urban(c) Unit functioning in that ROI:
allotted by Govt property (d) Approval to conversion as No Concession to Women & J&K
Authorities/Semi Govt. industrial/commercial available States, Concession to NE States
Authorities, Agencies mandatorily. (e) Clearance from
like Industrial Dev. appropriate authority Inspection and PIPR – Half Yearly.
Authority, Small Scale 2 Valuation is required and least should be
Development Authority, used.
Special Economic To arrive Security Value the residual value
Zones (SEZs), Industrial of properties obtained as securities for
estates like Textile other limits of the borrower may also be
Parks etc., irrespective taken into account.
of location & authorized Tenanted property to be avoided and in

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
by State/Central Gov. case it is taken loan to be sanctioned by
either next higher authority
easehold/freehold Vacant Land alone is not accepted
subject to security
conditions
for
Individuals/Partnership
firm (other than
partnership firms where
HUF is a
partner)/company
(excluding NBFC)/
Traders/
Businessmen/
professionals or self
employed
persons/ proprietary
firms.
7. CANARA To provide WC assistance Quantum: Above 10 Lakhs, Max. 10 Margin: TL and NFB : 10% WC: 12M.
CONTRACTOR (fund based /non-fund crores. WC as Secured OD: No Stock TL: 5 yrs. for
372/2014 based) in the form of Actual requirement subject to maximum 9 Statement submission and other than
386/2014 running limit (Secured times of Tangible Net worth (TNW). computation of Drawing power. construction &
EXISTING AND OD), FLC/ILC & BG for TL max. 5 crores. Backed by Collateral value of 125%. 7 years for
PROSPECTIVE WC needs and TL for PC /Upfront fees: 25% Concession for Construction/
CONTRACTOR/SU purchase of brand new Security: Mortgage of property by way of FB and NFB limits purchase of
B- equipment/office land and building (business/ residential) equipment
CONTRACTORUN premises. situated in Semi-Urban/Urban/Metro Inspection and PIPR – Half Yearly (including
DER MSMED ACT Centers-value min. 125% of the loan holiday period)
2006 Satisfactory dealing for 2 amount
TYPE OF year from existing client. Loan above 2 Cr- Valuation by 2 panel
CONTRACTOR_CI New clients with valuers - lease value to be considered
VIL, MINING, satisfactory market Vacant site may be accepted provided
CONSTRUCTION report and prospects allotted by Govt. Approved local bodies &
converted for non agril use.
ROI: as per scoring Norms in scheme
8. Canara MSME Purchase of software/ Quantum: linked to the export turnover. DSCR minimum of 1.50. To be repaid in
Expo 418/2014 hardware for fashion Turnover(crores) Limit CR not below 1 3 years with
TL scheme for designing, travelling 1-2 Upto Rs.10 lakh Current Ratio should not fall below 1 initial
exporters in abroad for business even after availing the Term Loan repayment
MSME Sectors purpose, participation in Above 2 to 5 Upto Rs. 20 lakh under the scheme. ROI: As per MSME holiday of 3
Satisfactory trade fairs, exhibitions Above 5 to 10 Upto Rs. 30 lakh guidelines months.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
track record for aboard or International Above 10 Upto Rs. 50 lakh ROI Concession: 0.5% for women and
past three years. Trade Fair in India. Max Cap of Rs 25 lacs per trade fair. 0.25% for CGMSE account
Minimum Export Security: Upto 10 lakh CGTMSE. Above: MARGIN: 15 – 25% of Project Cost
Turnover 100 lac Either CGTMSE or 100% UPFRONT FEE: As applicable
in preceeding Primary/collateral.
year Residual value of earlier security
Upto MR as per accepted
CRR
9. CANARA TRADE Both working capital and QUANTUM: Max Loan – 10 crore. Entire WC limit is by way of secured TL: Maximum 84
term loan. Existing Adhoc: 20% Sanctioned limit OR OD. DP need not be calculated. months.
Traders, parties having Delegated power (whichever less)-Max 30 Stock and book debt statements Secured OD
business satisfactory dealings. days- Max 2 times in a year- Maintain 133% (cir365/09): limit – 2 years
enterprises, New parties with good collateral security Simplified– Limits up to 50 lakhs once subject to
commission track record. Parties to Margin : Term Loan 25%. in 6 months, annual review.
agents, services confine their entire TL component for construction should not Limits above 50 lacks once in quarter
sector, dealings with our bank. exceed 60% of the project cost. No (Mar, Jun, Sept, and Dec).
professionals and margin for WC up to 50 lakhs. Commission Agents: The income &
self-employee. Secured OD up to 10 lakhs – Full stock + expenditure account is to be obtained
100 % EMT value. quarterly.
Secured OD beyond 10 lakhs up to 50 Assessment of WC l Limits:
lakhs – Full stock and book debts + EMT Up to 5 crores – Turnover Method, 5 to
value 133% of limit. 10 crores – MPBF
Secured OD beyond 50 lakhs up to 10 Unit visit and insp. – Quarterly.
crore – Secured fully by stock and book
debts with 10% margin and EMT value
133%.
For Commission Agents, EMT value shall
not be less than 200%.
Appreciation of Security: max 25% by RSA
Min Gap of 3 years between two valuation
report (from last valuation report or date
of sanction-whichever earlier). Based on 2
valuation report (lowest value to be
taken). CRR upto NR
10 OD-MSME WC assistance as secured QUANTUM - 3 crores. (Max) Stock statements - Simplified Up to Up to 2 lacks- 2
421/2013, overdraft to MSME (Mfg.) Security- Hyp. of Book debts + EMT 125 %. 10 lacks H.Y. Beyond 10 lacks years.
215/2012 MSME (Service) units are Vacant site may be accepted provided site quarterly. Beyond 2 lacks-
WC finance to not eligible for finance is purchased from government approved Detailed statements- Annually at the LR- 18M, NR-
MSE under this scheme. authorities. time of balance sheet. 15M, MR- 12M
Manufacturing Two years satisfactory Appreciation in the value of security: Stock inspection at quarterly
units. record. Upto 2 Lacs: upto Upto 2 lacs- 20% as per DOP intervals.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
ASCC – S1/S2, Above 2 Above 2 Lacs – 25% as per DOP Review exposure under scheme
lacs- upto MR periodically through BO 280037.
Margin and arriving of drawing
power- NIL
OCC, SOCC, LUCC may be migrated at
the time of Renewal.
11. DOCTORS For Clinics/ X-Ray labs / Maximum quantum- 5 crores. Margin- Up to 25000/- Nil, TL: Max. 5-7
CHOICE nursing homes, Working capital- 20% of maximum limit Above 25000/- Yrs.
Qualified regd. Subject to maximum 50 lacs. TL for Construction – 25%,
Practitioner- Expansion/renovation/ TL for equipments-20%, Moratorium 3-6
Indian Unani, modernization of existing Low to moderate risk rated WC -20%. months.
Homeopathic premises, Purchase of units/enterprises/ accounts are
Allopathic. equipment/ vehicles/ eligible. Upfront fee- Up to Rs. 5 lakhs Nil, WC-Tenability-
Individual/ ambulance/ computers, 75% of normal charges, presently Max. 2 Years.
proprietorship/p 0.75% of loan amount. Min. 3750/-
artnership, Other essential equipment Max. 3.75 Lakhs.
companies / and WC requirement, For Processing Charges - Up to 5 lakhs Nil,
trust. 50% Business trip, in-house Above 5 Lakhs- Rs. 100/lakh or part
partners in medical store, Resident Dr. there of minimum Rs. 500/-
Partnership, 50% Qtrs. WC / TL / Composite
of Loan. ODBD of reputed Stock statement- For WC Simplified
promoter/direct Hospital also permitted. stock statement- Quarterly, Detailed
or in Co & annual.
Atleast one
trustee in Trust
be Regd. Medical
Practitioner
377/2013
12. “RICE MILL Credit needs of the rice Party possessing Small Scale Industries Scheme Code – 64900
SCHEME” Earlier shellers /mills including registration certificate or those who have filed/ Processing charges & upfront
SCHEME FOR poha manufacturing units are filing Memorandum of Micro, Small and fee, Assessment, repayment,
FINANCING RICE (both existing and new), Medium Enterprises, in terms of Micro, Small and sanctioning authority, validity
SHELLERS/MILLS viz., term loan for Medium Enterprises Development Act, 2006. of sanction, disbursement of
UNDER MSME construction of factory Internal credit risk rating of units to be Low, loan, documentation,
SECTOR) TO building, purchase of Normal and Moderate. risk grade is HIGH/BB or classification, inspection, stock
Encourage machinery/equipment less audit, valuation of securities
development of and working capital. QUANTUM: Minimum: Above Rs. 10 Lakhs. and credit risk rating/scoring
rice shellers Maximum: Rs.25 crores only. norms etc., shall be as per
/mills including Security- 1. Assets created out of loan, 2. prevailing guidelines.
poha Mortgage of immovable property, not less than
Mfg. units in 50% of the limits permitted. Personal guarantee:

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
MSME To be obtained as per prevailing guidelines.
(MANUFACTURIN ROI : Based on security comfort by way of
G SECTOR). Equitable mortgage of immovable property,
125/2015 Either Primary or Collateral or Primary and
Collateral put together
13. CANARA DAL To extend working QUANTUM: ALM Scheme Code – 65575-
MILL SUPER capital and/or term loan Minimum: Above Rs.10 Lakhs /unit. Delegation of powers, Credit
Both existing and (domestic credit) to Dal Maximum: Rs.10 Crores per unit. assessment, margin, stock and book
new Dal processing units in Micro, Prime security: Assets created out of debt statements, Processing &
processing units. Small & Medium loan. Upfront fee, inspection, insurance,
Risk rating up to Enterprises Collateral security: Mortgage of documentation, stock audit, credit
Low, Normal, (Manufacturing) sector. immovable property whose value is not audit, valuation of securities, review
Moderate. less than 75% of the limit. and reporting etc. as per prevailing
481/2014. ROI : Based on security comfort by way of guidelines.
Equitable mortgage of immovable
property, Either Primary or Collateral or
Primary and Collateral put together
14. PRADHAN Loans granted upto Rs.10 separate Scheme Code 75410 – Term loan- 5-7
MANTRI MUDRA lakhs for non farm sector QUANTUM: PMMY-MUDRA YOJANA. years, holiday
YOJANA (PMMY) income generating Margin- Upto Rs.25000/- Nil, Above of 2 to 3
181/2016,204/2 activities Sishu Loan up to Rs.50000/- Rs.25000/- 15 to 25% (30% margin in months.
017, 463/2018 Under MSME. Business case of book debt held as prime
related both TL and WC. 2 Kishore from Rs.50001 to security). Working
Private limited IOD facility upto Rs.500000/- Capital- As per
company, HUF Rs.10,000/- to all BSBD 3 Tarun from Rs.500001 to prevailing
and Trusts are Account Holders (other Rs.1000000/- Processing charges- Upto Rs.5 lakhs Guidelines
not eligible. than BSBD A/c holders in Nil, Above Rs.5 lakhs- As per
FI Villages) prevailing guidelines.
IOD limit upto Rs. 10000 Term loan: As per prevailing guidelines – Security – Hyp. And CGTMSE where
sanctioned under PMJDY Maximum 85% of ever applicable.
classified as PMMY the project cost. Working capital: As per All Govt. Sponsored scheme like DAY-
eligible for cover under Turnover /MPBF/Cash Budget Method, as NULM, DAY-NRLM, PMEGP (upto Rs.10
CGFMU. the case may be, Shishu category loans Lac), weavers Mudra shall also be
ROI as per prevailing rate applicable qualified under PMMY.
household annual income subject to maximum of 12% p.a.
does not exceed Rs Loans upto Rs.10 lakh extended to Time Bound disposal of application
1,00,000/- for Rural and activities allied to Agriculture to be (15 days) forwarded through Udyami
Rs 1,60,000/- for Non classified as PMMY and are eligible for Mitra Portal
Rural areas, should be coverage under CGFMU. i) PMMY logo to be prominently
classified under Priority displayed externally outside / inside
Sector – Others and the branch through Flex Boards

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
included under Advances /Banners /Posters etc.
to Weaker Sections. ii) Display of MUDRA signage at
Borrowers’ premises (513/2019)
-Branches are hereby advised not to
select the product code 741 while
opening loans under Pradhan Mantri
Mudra Yojana (PMMY).(267/2019)

15. START-UPS & To encourage start-ups Finance available for both Capital Age between 20-50 years. ROI: Card
EARLY STAGE and early stage units Expenditure & Working Capital Start Ups (SUs) & Early Stage Units Rates Less
UNITS. under MSME sector. Requirement i.e. TL & WC. (ESUs) - Units which have not 0.25% for both
Promoted/propos MSMEs- Manufacturing completed 3 years from the date of type of Units
ed to be and Services by QUANTUM: commercial Operation/ first Balance
Promoted by graduates of Minimum: Above Rs.10 Lakhs, Maximum: Sheet whichever is earlier. Repayment:
graduates of reputed Educational Start Ups (SUs) : Rs.200 Lakhs, Risk Rating upto Moderate Risk. Project cost
reputed Institutions. ESUs: Rs. 500 Lakhs. Security- Loan Amount Upto Rs. 100 upto Rs.100
educational Promoters graduated Margin- Working Capital - Minimum 25%, Lakhs: CGTMSE or 50% of the loan Lakhs:
institutions, from following Term Loan - Minimum 20% of the project amount by way of Land & Building/ Upto 7 years
(616/2015) institutions cost. Approved Securities/ Our Deposits excluding
a. IIMs b. IITs either primary/collateral or primary moratorium,
c. IIITs d. IISc and collateral put together. Loan but not to
e. ISBs f. IISER g. XLRI h. Amount above Rs.100 Lakhs: 50% of exceed an
Symbiosis the loan amount by way of Land & overall tenor of
Pune/Bangalore Building/Approved Securities/Our 10 years
Bank Deposits – either Project cost
i. MDI, Gurgaon
primary/collateral or primary and above Rs.100
j. NITs
collateral put together. Lakhs:
7 years & in
exceptional
cases upto 10
years,
excluding
moratorium,
but not to
exceed an
overall tenor of
12 years
Ballooning
repayment may
also be

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
considered
16. BE- Discount/purchase of Margin- 5% to 10%. Waiver of Margin Drawer under the scheme should be
MSME bills of exchange (only may be permitted on case to case basis. an MSME (Manufacturing) unit whose
pre-accepted bills or bills MSME (Manufacturing) Units coming into borrowal accounts are classified under
drawn under LCs) drawn our fold (takeover accounts) are also Standard Asset. The drawee of the bill
Bill of Exchange by MSME units eligible to be financed under the scheme, should be reputed Joint Stock
Discounting (Manufacturing) on subject to such units satisfying the Company and Public Sector
Facility to MSME reputed Joint Stock prevailing take-over norms. Undertaking. Bills of exchange drawn
Units at Companies/Public Sector Security- against Inland LCs of Public Sector
Concessional Undertakings Primary Security: Ist charge on Banks, Private Banks (excluding co-
Rate of Interest – representing genuine Receivables (other than those earmarked operative Banks) and Foreign Banks
BE-MSME. trade transactions. Shall for advance against book debts.) (Prime Banks) operating in India are
77/2016 be accounted under Bills Collateral Security: For advance upto also eligible for discount under the
Purchased Head. Rs.10 Lakhs, no collateral Security/Third scheme.
Party Guarantee. Eligible accounts to be However, where Private Sector banks
limit under the covered under CGTMSE. and Foreign Banks (Non-Prime Banks)
Limits over Rs.10 Lakhs to MSE Units and are involved, prior permission from
scheme is Medium Enterprises, Ist charge on Fixed RM Wing, HO. The bill-discounting
permitted as a assets/inventory or any other assets. limit under the scheme is to be
separate Sub-limit Personal Guarantee of third permitted as a separate Sub-limit
party/Corporate Guarantee acceptable to within the overall bills discounting
within the overall the Bank limit only
bills discounting Personal/ Corporate Guarantee:
limit only subject Wherever stipulated
to satisfying the
norms of
P R Nayak
Committee
Recommendations
/ MPBF/
assessment as per
Cash Budget system
17. “WEAVERS UNDER PRADHAN QUANTUM- WC requirement- Eligibility- Weavers, Master Weavers WC : 3 years
MUDRA” MANTRI MUDRA YOJANA i. Loans upto Rs. 50,000/- disbursement & Weaver Entrepreneurs in the subject to
For providing timely and by Mudra Card. handloom sector. annual review
in lieu of our hassle free assistance to ii. For loans above Rs. 50,000/- and upto Assessment- By Turnover method. TL: Max. Period
earlier Scheme weavers to meet their a Max of Rs.2,00,000/-. All fresh sanctions to Weavers shall be 36 months

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
Weavers Credit immediate requirements, (Mudra Card to be issued with a maximum sanctioned under this new scheme inclusive of
Card Scheme both for working capital limit of Rs. 50,000/-. Amount above Rs. only. repayment
and Term Loan. 50,000/- shall be disbursed through Scheme Code-90800 holiday of 3
550/2016 regular CC account.). Product Code- For Working Capital: months. Max.
Term Loan: Max. Rs.50,000/- 275 OD/ OCC. depending upon
However, exposure by way of both For Term Loans: 769 Manufacturing. requirement of
Working Capital and Term Loan shall not CGTMSE FEE- One time guarantee fee individual
exceed Rs. 2 Lakhs per Borrower. and annual service fee to CGTMSE for project.
a period up to 3 years to be borne by
Government support of the Government.
Margin Money Assistance - 20% of the Beyond 3 years, if any, Borrower to
project cost subject to a maximum of bear ASF and an undertaking letter to
Rs.10,000/- per weaver. be obtained from the Borrower to this
effect at the time of obtaining
Interest Subvention– Difference between documents during sanction/ disbursal
of loan.
actual interest charged by Bank and 6%
MUDRA card to be issued for the
p.a. The maximum interest subvention working capital limit as stated above.
shall be capped at 7% p.a. and will be Methodology for release of Govt.
provided for a maximum period of 3 years Support- Centralized On-line Claim
from the date of first disbursement. Disbursement Package (COCD) is being
Interest subsidy will be credited to developed by concerned authorities.
respective loan account of the borrower Detailed guidelines will be issued in
this regard, upon its receipt from the
on quarterly basis.
Government.
18. MSME SAHAY Target Group-MSME
QUANTUM: 20% of the existing Delegation of Powers- a) CM/DM and REPAYMENT:
(MFG./Service)
FB Working Capital limit above authorities is empowered to Within a
(199/2019) (Excluding Educational sanction such loans upto their maximum
Or
institutions, Self Help delegated powers as applicable to period of six
Nature of
Facility-Single
80% of Input Tax Credit Claims,
Group, Joint Liability Adhoc limits. months from
Group). b)Branches, which are not headed by
Transaction Loan, whichever is lower. the date of
Extension of “MSME CM/DM above authorities have to
availment/rec
i.e. WCDL The above limit is over and submit the proposals to the next
(Working Capital SAHAY” till eipt of ITC
31.03.2020 above MPBF. higher authority.
Demand Loan). Party to submit CA Certificate. claim
WCDL facility to (539/2019) whichever
fund Input Tax Documentation- As applicable to earlier as
Credit Claims Eligibility- Rate of Interest- Adhoc facilities. bullet
related to GST. i. party is in possession a) Accounts risk rated upto Moderate payment/mont
NOTE:
of Tax Invoice or Debit a) No other ROI concessions under any Risk/BB only. hly
Note or such other tax category. b) Conditions to be satisfied by the

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MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
paid documents as may b) In case of Unrated accounts with the registered taxable person for installments.
To provide credit be prescribed; exposure above Rs. 5.00 crores, additional obtaining ITC. Cir.310/2017,
against Input Tax ii. party has received the interest of 0.25% shall be charged till such OTHERS
Credit Claims goods or services or both; time External Rating is obtained by the 1. If any adhoc facility is
related to GST to iii. the supplier has Entity.
fund the liquidity actually paid the tax
existing in the name of the
gap in working charged in respect of the party, it is to be cleared
capital supply, to the before availing “MSME
requirements. government, and
SAHAY”.
iv. Party has furnished
the return under section 2. This facility will be beyond
39 the number of adhoc
facilities, a
borrower is eligible during a
particular year.
3. All other guidelines as
applicable to Adhoc limits
Product Code:753
Scheme Code :93600
19. MUDRA CANARA WC & TL to Quantum Maximum 10 Lakh Term Loan component: 85% of Working
ATITHI Cafeteria, Restaurants, Financing Hotels/Dhabas located at the total project cost. Capital :
Dharshani Hotels with National Highways should necessarily WC computed based on the stock Tenability up
14/2018 self service facility, be run by permanent residents holding requirement (realistic) for to 2 years
Mobile Canteens, (Borrower) of the same locality maximum 7 days. subject to
Dhabas, Fast food subject to compliance of regulatory Margin annual review.
centres. guidelines. Term Loan : 15%
Working Capital/Short Term Loan : Short Term
10% Loan
Upto a Term Loan limit of Rs.2.00 repayable with
lakhs, for purchase of equipments, 12 months may
furniture, utensils etc., if the be fixed.
business premises is on lease/rent, Term Loan : 5
Advance rent/Deposit paid, if any, years inclusive
may be treated as Margin with of moratorium
documentary proof. period based
on cash flows.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
20 CANARA GST To provide credit QUANTUM : Minimum loan Account risk rated upto Penal
Micro Small for Working Capital amount : Above Rs. 10 Lakhs. Moderate Risk only. interest is
and Medium requirement of GST Maximum loan amount: Rs.2 customers having/proposed made
Enterprises registered Crores to have sole banking applicable if
(ManufacturinMSME borrowers Assessment : 25% of Annual arrangement for working the passed
g/Service) (New/Existing) (as Turnover & not on financial capital requirements. on
defined under papers. Multiple Banking turnover is
MSMED Act 2006), Non availability of preceding Arrangement/Consortium is less than
New
by way of fund year annual GST Return, past not permissible. 75% at the
customers
based exposure. six months returns shall be GST Return of minimum for time of
with
To Individuals, considered to arrive annual the past six months. renewal.
minimum
Proprietary firms, turnover (two times of the past Atleast 75% of turnover If passed on
business
Partnership firms six months turnover). reflected in GST return turnover
operation of
i. Entire turnover of the
6 months and (other than should have been routed is between
partnership firms firm/company as reflected in through the Bank account 50% to
existing
customers at where HUF is a GST returns should be routed WC only. 74% of
the time of partner), Limited through Bank account. Margin: Nil, turnover
renewal, Liability ii. Penal interest is introduced Current Ratio: Min 1 reflected in
(383/2019) Partnership (LLPs), for not routing the transactions (including Take over) GST
Companies(excludi through Bank accounts. return.-
ng NBFC), Traders, SECURITY : Prime: Assets 0.25%
Businessmen, created out of Bank Finance. If passed on
Professionals or Collateral Security value shall turnover
self employed be minimum 75% of the loan is less than
persons amount in the form of (i) 50 % of
Mortgage of immovable turnover
properties Land & Building (ii) reflected in
Other approved Collaterals (iii) GST return-
Our Bank Deposits. 0.50%
mortgage of immovable 50% of the
properties- applicable
Land & Building: processing

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
Properties located in Metro, charges.
Urban, Semi-Urban, Select Rural
Properties and Properties
allotted by Govt.
Authorities/Semi Govt.
Authorities, Agencies (subject to
conditions)
If residual value of existing
property which has been valued
and valuation report is less than
3 years the same to be treated
as first valuation and another
fresh valuation to be obtained
and lower of the two, shall be
considered.
Agricultural Property is
prohibited.
Tenanted properties shall be
avoided – otherwise DOP for
sanction is NHA.
Mortgage of immovable
properties-
Land & Building: Properties
located in Metro, Urban, Semi-
Urban, Select
Rural Properties (within 20 kms
radius from nearby
Metro/Urban,
b) Located within 10 kms radius
from nearby Semi- Urban Town
No release and substitution of
existing primary/collateral

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
securities already charged to
our Bank
Immovable property by way of
land & Building shall be
accepted and Land alone
should not be accepted as
collateral under this scheme.
21 CANARA To meet the a. 25% of the existing Working WCDL (Working Capital The entire
SAHYOG- temporary liquidity Capital limit (FBWC+NFBWC) Demand Loan-Fund Based loan under
Stand By mismatch arising maximum up to Rs. 1.25 Crs. only) the scheme
Line of out of delayed b. No further Adhoc shall be a. The borrower can avail the has to be
Credit for realization of permitted to the borrower sanctioned amount in one go repaid
MSME receivables, during the tenability of limit or in tranches. within the
borrowers receipts of GST under CANARA SAHYOG maximum
(Excluding Inputs tax credits SECURITY Validity of the scheme period of 12
Educational (including for a. Hypothecation of Stock and 06.12.2020 months from
institutions, Exports) and other receivables. b. Extension of the date of
Self Help Business charge on primary security/ Product Code:753 disbursal or
Group, Joint requirements collateral security CGTMSE cover to be sanction
Liability Scheme applicable examined whichever is
Group) to loan to Food and earlier
(616/2019, Agro Processing
635/2019) Unit upto Agg
sanctioned limit of
Rs 100.00 Crores
per borrower from
banking system

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
22. . Interest subvention Revolving Fund and Community Universal Financial Inclusion, Provision of
“Deendayal scheme on Credit to investment support Fund (C.I.F): Phased Implementation: Interest
Antyodaya Women SHG during the incentive to inculcate the habit of thrift Social capital of the poor consists of Subvention
Yojana - year 2019-20 and accumulate their own funds towards the institutions of the poor, their interest
National Rural scheme is limited to meeting their credit needs in the long-run. leaders, community professionals and subvention on
Livelihoods Women Self Help Funding Pattern: DAY-NRLM is a more importantly community credit up to 3
Mission Groups in rural areas Centrally Sponsored Scheme and the resource persons (poor women whose lakhs at 7% per
(DAY-NULM)”. only financing of the program would be shared lives have been transformed through annum. SHG
(633/2019) Universal social between the Centre and the States in the the support of their institutions). availing capital
mobilization, ratio of 60:40 (90:10 in case of North Intensive blocks : The blocks that subsidy under
Participatory Eastern States including Sikkim; are taken up for implementation of SGSY in their
identification of poor, completely from the Centre in case of DAYNRLM, 'intensive blocks', would existing credit
Promotion of UTs). have access to a full complement of outstanding will
Institutions of the trained professional staff and cover a not be eligible
poor, whole range of activities of universal for benefit
Strengthening all and intense social and financial under this
existing SHGs and inclusion, livelihoods, partnerships etc scheme.
federations of the Rural Self Employment Training ROI charged on
poor, Institutes (RSETIs): RSETI concept is SHG loans
Emphasis on Training, built on the model pioneered by Rural above Rs. 3.00
Capacity building and Development Self Employment lakhs – slabwise
skill building, Institute (RUDSETI) - a collaborative A grade-MCLR +
partnership between SDME Trust, 1.55
Syndicate Bank and Canara Bank. B GRADE-MCLR+
2.05
Joint Liability
Groups (JLGs)
are NOT eligible
for subsidy
under DAY-
NRLM Scheme
The banks
should credit
the amount of
3% interest
subvention to

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
the eligible
prompt payee
SHG loan
accounts and
seek the
reimbursemen
t after the
end of
reporting
quarter

23. “Deendayal Self Employment Finance can be extended to Loans granted under NULM
Antyodaya Programme – individuals for capital expenditure (SEP-I, SEP-G and SHG) are
Yojana - Individual in the form of Term Loan and eligible to be covered
National Urban Enterprises (SEP-I) Working Capital loans through under appropriate guarantee
Livelihoods Self-Employment Cash Credit. Composite Loans cover.
Mission Programme – Group can also be extended consisting of Loans granted under NULM
(DAY-NULM)”. Enterprises (SEP-G) Capital Expenditure and Working scheme to be classified as
(466/2019)
and Self Help Group Capital components, depending advances to weaker
(SHG) upon individual borrower’s section under priority sector.
requirement. Implemented in District
No margin money should be taken Headquarters (Irrespective of
for a loan up to ₹ 50,000 and for Population) and all the
higher amount loans, preferably cities with population of 1 lakh
5% should be taken as margin or more.
money and it should in Interest Subsidy, being
no case be more than 10% of the interest charged over and
project cost. above 7% rate of interest will
KYC, Assessment, Processing, be available for the term loans
Rate of Interest, Margin, granted under SEP-I and SEP-
Inspection, Insurance, G.
Delegation of Powers, Security, An additional 3% interest
credit guarantee coverage for subvention will be provided to
SEP-I, SEP-G and SHG are as per all Women SHGs

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
S.N NAME & TARGET PURPOSE QUANTUM AND SECURITY OTHER FEATURES REPAYMENT
GROUP
extant guidelines of MSME (WSHGs) who repay their loan
in time

24.
Prime To generate Maximum Project Cost – Rs.25.00 Rate of subsidy varies from 15% REPAYMENT :
Minister’s employment Lakhs for manufacturing units and to 35% of the project cost 3 to 7 years
Employment opportunities in rural Rs.10.00 Lakhs for depending upon the category of with an initial
Generation as well as urban areas Business/Service sector units. the borrower and location of moratorium
Programme of the country Only one person from a family is the unit. not exceeding
(PMEGP) – through setting up of eligible for assistance under the 6 (six)
administered new self- scheme - ‘family’ includes self and Promoters Margin Contribution months.
by Ministry of Employment spouse – 5% for special category
MSME and ventures/projects/mi borrowers and 10% for general
implemented cro enterprises. category borrowers.
by KVIC new viable micro
enterprises, including individual, above 18 years of age
Village
Industries/projects
except activities
indicated in the
negative list of
Village Industries.

Existing/Old units
not eligible.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
PSB Loans in 59 Minutes to MSME Sector in digital Platform-(480/2018, 538/2018,564/2018,567/2018, 73/2019)

The Borrower journey in Digital Platform on contactless MSE Loans

One of the PSB Reforms Agenda of DFS (Department of Financial Services), Ministry of Finance, GOI under EASE of
financing for MSMEs, is to improve due diligence, better risk assessment, faster turnaround time (TAT) through Fintech
(Financial Technology Innovation for business transaction) and online application facility & automated decision for all
Micro Enterprises loans.

1. Client shall login to the digital platform using his/her mobile number as user ID wherein OTP to be sent to this
Mobile Number from the platform. The client may also use e-mail as user ID, wherein password will be
communicated to the said e-mail ID.
2. Step by step process flow after login to the portal as below:
a) Client has to answer 4 basic questions and provide consent that “They are registered MSME” and other T & C
b) Filling GST Details: Client has to provide GST Number and GST User Name to login. Client can either login
through GSTN password or opt login through OTP to proceed ahead.
c) After successful GST data fetch Client needs to provide ITR details. Client can either upload ITR for the last 3
years in XML format or enter the date of incorporation to login. The PAN number would be auto filled and Client
has to enter ITR password.
d) After successful ITR data fetch, client needs to provide Bank statement. Bank statement shall be provided
through net banking login/ upload PDF statement by download through Net Banking.
e) Post successful bank statement data upload, client needs to provide additional details for generation of Credit
Information Reports (CIR) for individual/commercial bureau.
f) Post bureau fetch, client needs to give proposed loan details. Although existing loans if any will be auto
fetched by the system, client has to provide the details.
g) On completion of the above steps, system will show different Bank products matching with the requirement of
the client.
h) Client has the option to choose Bank and Branch.
i) On payment of convenience fee, client shall get “in-Principle sanction”. If client has opted our Bank specific
URL :
psbloansin59minutes.com/canarabank, applicable convenience fee to be collected is withdrawn.
If client has opted market Place URL : psbloansin59minutes.com/ the applicable convenience fee will be
directly collected from the client through the digital platform.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
1. Change in the name of the service provider company: M/S Online PSB Loans Limited (Formerly known as M/S
CapitaWorld Platform Private Limited)
2. Downward revision in Processing Fee to be collected from the customers for Working Capital and Working
Capital Renewal proposals retrospectively from 01.10.2018.
3. No Convenience Fee for Bank specific URL.
4. Minimum and Maximum Loan quantum : Above Rs 5.00 Lakhs and upto 100 Lakhs
Maximum loan quantum for Working Capital Limits/Renewal of Working Capital Limits will vary depending
on the type of ITR filed by the client

5. (i) ITR3 - Above Rs.5 Lakhs upto Rs.100 Lakhs


(ii) ITR4 - Above Rs.5 Lakhs upto Rs.40 Lakhs
(iii) ITR4S - Above Rs.5 Lakhs upto Rs.40 Lakhs
(iv) ITR5 - Above Rs.5 Lakhs upto Rs.100 Lakhs
(v) ITR6 - Above Rs.5 Lakhs upto Rs.100 Lakhs
6. ITR Applicability
ITR3-- ITR 3 is applicable for individual and HUF who have income from profits and gains from business or
profession.
ITR4 - ITR-4 is the Income Tax Return for those taxpayers, who have opted for the presumptive income
(no financial statement will be available) scheme having turnover of the business upto Rs.2 crores.
ITR4S- ITR-4S return has been discontinued from FY 2016-17 (AY 2017-18). The latest ITR-4S shall be for
FY 2015-16, now to file ITR-4.
ITR5 5- This income tax return is meant for firms, LLPs, AOPs (Association of persons) and BOIs (Body
of Individuals).
ITR6- Companies other than companies claiming exemption under section 11 must file
Companies claiming exemption under section 11 are those whose income from property is held for
charitable or religious purposes
7. Processing Charges for Working Capital Loans: 0.45% +applicable Taxes
8. Upfront fee for Term Loans: 0.75% + applicable Taxes

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

 UDYAMI MITRA PORTAL –Online application for MSME loans. Time bound processing of proposals – Prompt usage of
the Portal (281/2018)

 As one of the PSB reforms agenda, it is stipulated a time frame of 15 days for decision making which needs to be strictly followed
by all branches. Presently MSME Wing, H O is sharing the inputs available in www.udyamimitra.in to the Circles on a regular basis
to take up with their branches for early pick up /processing of the proposals.
 An exclusive web portal www.udyamimitra.in has been created and is being operated and maintained by SIDBI (Small
Industries Development Bank of India) through which MSME entrepreneurs can apply for finance, to Banks of their
choice. Applications can be made online through the portal.
 Our Bank is opted as the preferred Bank and process the applications on merits as per extant guidelines on MSME lending.
 Branches /Offices to access the portal and update the status of the application to facilitate the borrowers to track their
application on Mudra and Stand Up India.
 The user Id and password presently used by the branches for Stand Up India portal (Refer HO Cir 290/2016 dt
16.05.2016) will be the same for logging into www.udyamimitra.in

1. Stand Up India Scheme to Help Women and SC/ST Entrepreneurs- (144/2016, 290/2016, 334/16,577/2016,
483/2019)
2. Scheme for financing green field projects in manufacturing, services and trading sector
3. Stand Up India Scheme to Help Women and SC/ST Entrepreneurs announced by Government of India
4. Each Branch to identify and sanction minimum one loan each with loan amount above Rs.10 lakh and up to Rs.100 lakh to
one woman and one SC/ST entrepreneur to start Greenfield projects
5. SC/ST/Women entrepreneurs are eligible to avail finance under this scheme
6. In case of Non-Individual Enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or
Women Entrepreneur.
7. Age Limit – Above 18 years.
8. Borrower should not be in default to any Bank/Financial institution.
9. Credit facility shall be composite loan (Inclusive of Term Loan and Working Capital)
10. Margin – 25% of the project cost
11. Exclusive Web Portal maintained by SIDBI - www.standupmitra.in
12. Separate Scheme Code “75430 - Stand-Up India Scheme” is created in BAM 83
13. “Stand Up India Scheme would be continued for the entire period coinciding with the 15th Finance Commission period of
2020-25. The Banks will provide financial assistance for demand based businesses, including for example for acquisition of

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
scavenging machines and robots.”
The user ID and password of the branches shall be as under:

Particular Details

User ID of the Branch IFSC code in lower case

Password IFSC code in lower case followed by _123

Example

IFSC Code of a Branch CNRB0002396

User ID cnrb0002396

Password cnrb0002396_123

CIBIL MSME RANK” (CMR) -

1. Bank Subscribed as an additional due diligence tool for MSME Proposals.


2. Delegation of power for considering MSME loan proposals (Fresh/Renewals/Renewal with enhancement)
based on CMR (CIBIL MSME Rank) is defined
3. Initially, the guidelines will be applicable for a period of six months from 08.04.2019 and would continue to
be applicable beyond six months also till such time further/revised guidelines are issued. It is made
applicable to Existing & New MSME loans with aggregate Loan quantum (Present & Proposed) of above
Rs.10 lakhs upto Rs.10 crores
4. Restriction on fresh exposure & enhancement to existing customers with poor CMR rating. No fresh
exposure to be considered for new accounts rated as CMR 8, 9 & 10.
5. CMR will be automatically generated along with Commercial Credit Information Report at the time of
generating the same for customers having loan limits above Rs.10 lakhs upto Rs.10 Crores
6. The guidelines will be applicable with effect from 08.04.2019
7. The present Credit Information Report of Credit Information Companies for individuals are linked with scores
to decide the credentials whereas, commercial credit information report reveals the credit history of

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
borrower for last 24 months without providing any inferable score of the entity to take credit decision.
8. M/S Trans Union CIBIL has come out with a solution namely “CIBIL MSME RANK” (CMR) which shall give us an
insight relating to probability of default (PD) based on the rank awarded to the Company (Business Entity).
9. The key parameters such as liquidity (cash flows of the entity), repayment behavior, pattern of fund
utilization, credit activity are used in CIBIL MSME RANK (CMR) to measure credit risk, based on 7 years of
history and through machine learning algorithms.
10 .CMR measures and predicts the risk of MSMEs on a rank scale of 1 to 10, 1 being the best rank and 10 being
the worst. Every CIBIL MSME RANK (CMR) grade has a validated Probability of Default (PD) estimate
associated with it.
10. The comprehensive details of CMR (CIBIL MSME RANK) 1 to 10 is provided.
11. Our internal Risk Rating & ECAI rating are done once in a year while CMR is dynamic as the scoring is done on
the basis of multiple data inputs on an ongoing basis
12. Based on the details available in Commercial Credit Information Report (CIR) of M/s. Trans Union CIBIL
Limited without CMR, branches/offices may not be in a position to come to a common conclusion
13. Chances of giving diverse opinion on same CIBIL Credit Information Report (CIR) according to individual’s
experience in credit field and outlook shall be avoided. In order to avoid such subjective credit decision and to
ensure standardization in credit sanctioning, CMR linked delegation of powers is implemented
14. Existing Delegation of Powers based on Internal Risk Rating would continue without any changes subject to
complying additional conditions as per CMR.
15. DOP based on CIBIL MSME RANK (CMR)

Following MSE loan schemes withdrawn with effect from 01.04.2016. HO Circular 180/2016
1. Canara MSE Pragati, 2. MSE Vijeta – Model I, 3. Canara MSE Saral, 4. Canara MSE Satkar

IMPORTANT PRICING RELATED GUIDELINES— INTRODUCTION OF REPO LINKED LENDING RATE (RLLR) FOR
MSME AND RETAIL SECTORS W.E.F. 01.10.2019 – (501/2019)

1. Introduction of new method of pricing for MSME and Retail loans/advances linked to the external benchmark i.e.
Repo Linked Lending Rate (RLLR) with effect from 01.10.2019.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
2. RLLR effective from 01.10.2019 shall be 8.30%
3. All new loans under MSME and Retail shall be linked to RLLR with effect from 01.10.2019.
4. Rate of interest on existing working capital limits under MSME and Retail on renewal on or after 01.10.2019 and
other credit limits on reset of pricing will be linked to RLLR.
5. ROI on exposures above Rs.2.00 Crore shall continue to be based on credit risk rating (Internal / External). ROI on
exposures above Rs. 2 lakhs upto Rs 2 Crores to be based on internal risk rating, except Retail Loans and other
specific schemes.
6. Existing borrowers (other than fixed rate) can switch over to RLLR subject to conditions enumerated and the
branches can permit the same.
7. Maximum lending rate for Working Capital limit and Term Loans specified.
8. Liquidity premium to be loaded to the card rates for applicable loans/advances
9. Actual lending rates will be determined by adding Credit Risk Premium and Liquidity Premium to the RLLR. Accordingly,
there will be no lending below the RLLR for any loans linked to that benchmark.
10. Notices to be issued to the existing borrowers giving option for switch over to the RLLR.
11. Link letter to be obtained on switchover to RLLR and existing interest clause in all agreements for new loans to be
substituted with a revised clause.
12. Existing MSME and Retail loans/advances based on the BPLR / Base Rate / MCLR system may continue to run till their
maturity/renewal, except where customer opts to move to RLLR.
13. Existing borrowers under MSME and Retail will have the option to move to the RLLR at mutually acceptable terms.
However, this will not be treated as a foreclosure of existing facility.
14. Existing borrowers under MSME and Retail borrower shall be eligible for switchover to RLLR with payment of
administrative/ legal costs of 0.50% of Loan liability with a minimum charge of Rs 500/- and a maximum of Rs.50,000/- plus
applicable taxes, which is to be credited to Commission Service charges.
15. Authority to permit reduction in administrative/ legal costs for switching over to RLLR shall be as under:
16. The final rate charged to borrowers switched over to RLLR shall be the same as the rate charged for a new loan of the same
category, type, tenor and amount of a new loan under RLLR.
17. Switch over to RLLR to be permitted only if all the sanction terms and conditions are complied with and there are no
overdues in the account.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
18. In case of existing running limits under MSME and Retail, where limits are expiring on or after 01.10.2019 including where
extension of tenability has already been permitted and where the customer has not submitted the renewal papers, existing
rate of interest linked to MCLR to continue till renewal. Further, where extension of tenability has been permitted after
01.10.2019, such accounts shall also be under MCLR regime only till renewal. The extant guidelines on extension of
tenability shall remain unchanged.
19. Where a loan (Retail and MSME) has been sanctioned prior to 01.10.2019 but availed on or after 01.10.2019, applicable rate
of interest shall be as per RLLR system.
20. Where multiple credit limits have been permitted under MCLR system before 01.10.2019 and the borrower has availed only
one or two credit facilities, the rate of interest for the other loans/limits availed after 01.10.2019 shall also carry interest
linked to RLLR.
21. Where multiple credit limits sanctioned before 01.10.2019 and all are availed on or after 01.10.2019, and then all the
loans shall be priced under the RLLR system.
22. Loans to our employees including retired employees and loans to bank’s depositors against their own deposits are
exempted from the purview of RLLR.
23. In respect of unsecured advances, Rs.1.00 Crore and above additional rate of 1% may be charged over and above the
applicable rate even if it exceeds the maximum rate. Sanctioning authority at the level of GM-CO-CAC and above may
waive upto their delegated powers
24. In respect of all existing borrowal accounts, including consortium accounts where we are the leader, a notice to be served
to the borrowers giving option to switch over to RLLR.
25. Wherever branches are extending the option of switchover to RLLR to existing borrowers, the same to be effected after
obtention of suitable documentation stipulated in this Circular.
26. Charging simple rate of interest for certain loans and advances shall continue under RLLR regime also. For e.g. Education
Loans, DIR Loans.
27. Wherever the employee loans are linked to MCLR, the same may be continued. However employee can switchover over to
RLLR as per guidelines at their option. However the new loans under such schemes will be linked to RLLR with effect from
01.10.2019.
28. The Credit Risk Premium applicable to these loans will be the same as applicable to Low Risk Grade (CS:1) customers.
29. Temporary Overlimit facility / Adhoc Limit shall be charged at the ROI fixed/applicable to the account + 2%.
30. CDB permitted on Single Transaction basis shall be charged rate of interest linked to RLLR + maximum lending rate
applicable
31. In case of rating downgrade, the Credit Risk Premium will not be immediately changed, but get refixed on the Review of
the account as under.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
Risk Rating has to be reviewed immediately on receipt of the audited annual accounts of the borrower, and any downgrade
in Rating shall lead to review in pricing also depending on the grade awarded on such review.
32. In case of working capital limits, whenever internal credit risk ratings are downgraded/ down gradation in ECAI rating by
one notch, (excluding where the loans are restructured), a review note shall be placed to the sanctioning authority within
one month of such down gradation and a review of pricing shall be carried out with the approval of sanctioning authority
duly informing the borrower.
33. If an account is externally unrated and gets an External rating at a later date, the Credit Risk Premium shall be refixed by
the Sanctioning Authority from the due date / review date for the loan.
34. The devolved LCs/ Invoked BGs / crystallized transactions shall be charged at RLLR + maximum lending rate + penal
interest of 2 % per annum.
35. formats of documentation under RLLR system are furnished as under :

Enclosure I Format of Notice to be sent to existing borrowers

Enclosure II Format of Link Letter to be obtained from existing borrower/Guarantor who is opting for RLLR

Format of Link Letter to be obtained from existing borrower/Guarantor whose limit is getting renewed
Enclosure III
on or after 01.10.2019

Enclosure IV Clauses to be incorporated in the Documentation

Reset of interest rates

The RLLR shall be reset at least once in three months. The transition (increase / decrease) in RLLR will be passed on to all the
accounts linked to RLLR with effect from the date of reset.

Liquidity Premium:

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

For loans repayable more than 1 year upto 5 years and more than 5 years, the liquidity premium to be loaded to the Card rates
additionally, as given below :

Repayable > 1 year upto 5 years - 0.40% Repayable > 5 years - 0.85%

1. Exposure above Rs 5.00 Crores

a. Externally Rated Accounts


(% p.a.)
MSMEs (Manufacturing / Services) - Exposures > Rs.5 crores
(Other than NBFCs, Commercial Real Estate, Capital Market exposures)

Rating Grade CRP over RLLR


AAA or Equivalent 1.90
AA or Equivalent 2.10
A or Equivalent 2.60
BBB or Equivalent 2.80
BB or Equivalent 3.60
B or Equivalent 4.80
C&D or Equivalent 6.00

b. Externally unrated Accounts and rated internally:

% of Value of immovable property/approved collaterals in proportion to the exposure


Rating Grade
Up to 50% 51% - 75% 76% - 100% Above 100%

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
CRP over RLLR CRP over RLLR CRP over RLLR CRP over RLLR
LR 1 2.10 2.00 1.80 1.55
LR 2 2.20 2.10 1.90 1.65
LR 3 2.70 2.60 2.40 2.15
NR 3.00 2.85 2.65 2.40
MR 3.25 3.10 2.90 2.65
HR 1 5.00 4.80 4.60 4.35
HR 2&3 6.00 5.80 5.60 5.35

Exposure above Rs 5.00 Crore externally unrated, an additional interest of 0.25% p. a shall be charged till such time
external rating is obtained by the entity.

2. Exposure above Rs 2.00 Crore up to Rs 5.00 Crore rated internally under RAM model
MSMEs - (Other than NBFCs, Commercial Real Estate, Capital Market exposures)

% of Value of immovable property/approved collaterals in proportion to the


exposure

Rating Grade Up to 50% 51% 75% 76% - 100% Above 100%

CRP over RLLR CRP over RLLR CRP over RLLR CRP over RLLR

LR 1 2.10 2.00 1.80 1.55

LR 2 2.20 2.10 1.90 1.65

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
LR 3 2.70 2.60 2.40 2.15

NR 3.00 2.85 2.65 2.40

MR 3.25 3.10 2.90 2.65

HR 1 5.00 4.80 4.60 4.35

HR 2&3 6.00 5.80 5.60 5.35

3. MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) – EXPOSURE ABOVE Rs.2 LACS UPTO Rs.2 CRORES FOR BOTH
MANUFACTURING & SERVICES

a. For exposure above Rs 2.00 lakhs up to Rs 1.00 Crore:

Grade CRP over RLLR

I,II,III 1.65

IV 2.25

V 2.90

VI 3.90

VII & VIII 5.75

b. For exposures above Rs 1 Crore upto Rs 2 Crore :

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
% of Value of immovable property/approved collaterals in proportion to the exposure

Rating Grade
Up to 50% 51% 75% 76% - 100% Above 100%
CRP over RLLR CRP over RLLR CRP over RLLR CRP over RLLR

LR 3 2.70 2.60 2.40 2.15


NR 3.00 2.85 2.65 2.40
MR 3.25 3.10 2.90 2.65
HR 1 5.00 4.80 4.60 4.35
HR 2&3 6.00 5.80 5.60 5.35

Note:A reduction of 0.50% in the applicable rate of interest on loans and advances to Women Entrepreneurs under Micro
and Small Enterprises (both manufacturing & services) to be extended to new loans.

MICRO, SMALL & MEDIUM ENTERPRISES (MSME)–MANUFACTURING/SERVICES

IMPORTANT NOTE
Concession of 0.25% on applicable rate of interest in CGTMSE covered accounts upto an exposure of Rs. 100 lakh is available,
subject to the condition that the ultimate interest rate shall not fall below RLLR.

MANUFACTURING

A) Working Capital and short term loans upto Rs.2 lakh repayable in less than 36 months

CRP over RLLR


Micro & small Medium

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
a. Upto Rs.50,000/- 1.05 1.05
b. Above Rs.50,000/- upto Rs.2 lac 1.05 1.05

B) TERM LOANS

Term loans upto and inclusive of Rs.2 lac: (above 36 months)

CRP over RLLR


Micro & small Medium
a. Upto Rs.50,000/- 1.30 1.30
b. Above Rs.50,000/- upto Rs.2 lac 1.55 1.55

SERVICES

A) WORKING CAPITAL / SHORT TERM LOANS UPTO RS. 2 LAKH REPAYABLE IN LESS THAN 36 MONTHS:

CRP over RLLR


Micro & small Medium
a. Upto Rs.50,000/- 1.05 1.05
b. Above Rs.50,000/- upto Rs.2 lac 1.05 1.05

B) TERM LOANS
Upto Rs.2 lac:
CRP over RLLR
Micro & small Medium
a. Upto Rs.50,000/- 1.30 1.30
b. Above Rs.50,000/- upto Rs. 2 lac 1.55 1.55

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
6. OTHER SEGMENTS

a. BE- MSME (Irrespective of the limit):

The product is short term and self liquidating in nature and carry low default probability. Keeping this in view, we
propose to continue the present RoI as under;

Description CRP over RLLR


a. Bills up to 90 days Usance 0.45
b. Bills above 90 days up to 180 days 0.85

b. MSME SCHEMES :

i. DOCTOR'S CHOICE

Term loan : (MSME-Services)

Risk Rating Low Risk Normal Risk Moderate Risk


CRP over RLLR CRP over RLLR CRP over RLLR

Upto Rs.2 lakh 1.55 1.55 1.55

Above Rs.2 lakh to Rs.5


1.55 2.05 2.30
Crore

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

Working capital: (MSME-Services)

Risk Rating Low Risk Normal Risk Moderate Risk

CRP over RLLR CRP over RLLR CRP over RLLR

Upto Rs.2 lakh 1.05 1.05 1.05

Above Rs.2 lakh to Rs.5


1.05 1.80 2.05
Crore

Note: Following interest concession may also be extended subject to ULTIMATE


RATE OF INTEREST NOT FALLING BELOW RLLR: a. 0.50% concession applicable
to Women.
b. 0.25% concession in case of accounts covered under Credit Guarantee Trust for
Micro Small & Medium Enterprises (CGTMSE).

ii. OTHER MSME SCHEMES:

Sl.No. Scheme Name CRP over RLLR


1 Canara Trade 2.65

Traders’ Loan:
2 Upto Rs. 2 lakh 4.40
Above Rs. 2 lakh 5.65
Canara MSME Pragati (Only
3 0.95
for Switchover)

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
Interest concessions detailed below are NOT to be extended
a. 0.50% concession to Women Beneficiaries.
b. 0.25% on loans/advances covered under Credit Guarantee
Fund Scheme for Micro and Small & Medium Enterprises.

4 Canara MSME Unnati 1.65


Interest concessions as under may be extended subject to
ultimate rate of interest not falling below RLLR.
a) 0.50% on loans/ advances to Women
Entrepreneurs
b) 0.25% on loans/advances covered under CGTMSE

0.95
MSME Satkar (Only for
5
Switchover)

Canara MSME Smart


a. Upto 50 Lakhs
Low and Normal Risk 1.65
6 Moderate Risk 1.90
b. Above 50
Lakhs
Low and Normal Risk 1.90
Moderate Risk 2.15

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
The following Interest concessions shall be extended subject to
ultimate rate of interest not falling below RLLR.
a) 0.50% concession to Women beneficiaries
b) 0.25% concession to CGTMSE covered accounts

MSME Vahan 0.90


0.25% concession to CGTMSME covered accounts and 0.50%
7 concession for women entrepreneurs are NOT available under
the scheme.

MSME Vijeta
Model I (only for switchover)
0.90

No further Concession in interest rate to be extended.

8
Model II
Low and Normal Risk 1.40
Moderate Risk 1.65
0.25% Concession to be extended for CGTMSE covered accounts

Canara MSME CAP


Working Capital Term Loan
Low and Normal 1.65 1.65
9 Moderate 2.40 2.40
0.50% concession to Women entrepreneurs NOT to be
extended under this scheme.

Canara Contractor Rate applicable to MSME Segment Minus Concession as per HO Cir
10 372/2014 Dated 02.07.14 to be extended.
Scheme

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
Rate applicable to MSME Segment Minus Concession as per HO Cir
419/2014 Dated 25.07.14 to be extended.
11 Canara Caravan

Canara GST CRP over RLLR


Collateral security value 100% and above and Low Risk
1.10

Collateral security value 100% and above and Normal Risk


1.35
12 Collateral security value 100% and above and Moderate
1.60
Risk
Collateral security value 75%-99% and Low Risk
1.35

Collateral security value 75%-99% and Normal Risk


1.60

13. CANARA SAHYOG


0.50% above the ROI charged for the Fund Based WC Limit.

OD MSME and Canara MSME Expo – Rate applicable to MSME Segment


14. OTHERS
to be extended.

iii. SHG Loans:

Sl. Particulars Proposed CRP over RLLR


No.
1 Upto 1.40
Rs.3 lac
2 Above Rs.3 lac Slab (Marks Secured)* Proposed CRP over
RLLR
A Grade 1.65
B Grade 2.15

*Note: Marks to be calculated as per scoring parameters furnished HO Circular 101/2019 dated 06.03.2019.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

Repo Linked Lending Rate (RLLR) for loans to Food and Agro Processing Industries classified under Agriculture – Ancillary up
to Rs.100 Crores from the Banking System UNDER
i. Non Area Specific Schemes
ii. ii. Area Specific Schemes with concessional ROI

Eligibility criteria Existing MCLR linked RoI RLLR linked RoI


INLAND AND MARINE
FISH PROCESSING Immovable Security RoI Immovable Security RoI
50% to 75% MCLR+1.70% 50% to 75% RLLR+2.00%
>75% MCLR+1.45% >75% RLLR+1.75%
INTEGRATED MILK
PROCESSING UNITS
MCLR +1.70% RLLR+2.00%
(CHANDIGARH,KARNAL,
BANGALORE , PUNE, Wherever term loan are granted under the scheme, Wherever term loan are granted under the
KOLKATA AND Liquidity Premium is exempted. scheme, Liquidity Premium is exempted.
CHENNAI CIRCLES)

CONCESSIONAL ROI 1% interest concession for Tea Processing industries 1% interest concession for Tea Processing
TO TEA PROCESSING with the condition that after extending of the industries with the condition that after extending
INDUSTRIES IN TEA concession, the actual rate shall not fall below MCLR of the concession, the actual rate shall not
GROWING BELT OF fall below RLLR + 0.85% of the Bank.
GUWAHATI, NILGRIS + 0.55% of the Bank.
DISTRICT OF CHENNAI
AND KOLKATA
CIRCLES
CONCESSIONAL ROI
SCHEME FOR OIL SEED Working
Working Risk Rating Term Loan
AND SPICE PROCESSING Risk Rating Term Loan Capital
Capital
UNITS IN THE STATE OF
Low & RLLR + 0.60% +
RAJASTHAN Low & 1 Year MCLR + 1 Year MCLR + Normal RLLR + 0.60% Liquidity
Normal 0.30% 0.30% + TP
Premium

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
1 Year MCLR + 1 Year MCLR + RLLR + 1.10% +
Moderate 0.80% 0.80% + TP Moderate RLLR + 1.10% Liquidity
Premium

CONCESSIONAL RATE
OF INTEREST SCHEME Working Capital and Term loan Working Capital and Term loan
FOR OIL MILL MCLR+0.80% RLLR+1.10%
INDUSTRY IN CHENNAI

TERM LOAN SCHEME Term loan –Model I MCLR+0.75% Term loan –Model I RLLR+1.05%
“FLAVOUR” FOR Maximum Loan Amount: upto Rs.10 Maximum Loan Amount: upto Rs.10
COFFEE PROCESSING lakhs and Margin 15% lakhs and Margin 15%
INDUSTRIES
(ROASTING, GRINDING Term Loan Model II MCLR+1.45% Term Loan Model II RLLR+1.75%
& PACKING Maximum Loan Amount: >10 lakhs to Maximum Loan Amount: >10 lakhs
INDUSTRIES). 100 lacs and Margin 20% to 100 lacs and Margin 20%
Applicable liquidity premium to be loaded to the Applicable liquidity premium to be loaded to
above rate additionally. the above rate additionally.

AREA SPECIFIC SCHEME


FOR FINANCING Collateral Value (EMT of Applicable Collateral Value (EMT of RLLR Linked
CASHEW PROCESSING immovable property/ concessional ROI both immovable property/ Our concessional ROI
UNITS AT Our Bank Deposits/ for Working capital Bank Deposits/ Personal/ for both Working
CONCESSIONAL RATE Personal/ and Term Third party guarantee) capital and Term
OF INTEREST FOR Third party guarantee) Loan Loan
LOANS ABOVE Security coverage 100% MCLR + 0.45% Security coverage 100% and RLLR + 0.75%
RS.50000/- AND UPTO and above of the limit above of the limit permitted
RS.20 CRORES FOR permitted Security coverage above RLLR + 1.00%
BHUBANESWAR,
Security coverage MCLR + 0.70% 75% but less than 100% of
CHENNAI, KOLKATA,
above 75% but less than the limit permitted
TRIVANDRUM &
100% of the limit Security coverage above RLLR + 1.25%
VIJAYAWADA CIRCLES
permitted 50% but up to 75% of the
Security coverage MCLR + 0.95% limit permitted
above 50% but up to Applicable liquidity premium for term loans to be
75% of the limit exempted

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
permitted

Applicable liquidity premium for term loans to


be exempted

AREA SPECIFIC Collateral Value (EMT of Applicable Collateral Value (EMT of Applicable
SCHEME FOR immovable property/ Our concessional ROI immovable property/ Our concessional ROI
FINANCING CASHEW Bank Deposits/ Personal/ both for Working Bank Deposits/ Personal/ both for Working
PROCESSING UNITS AT Third party guarantee) capital and Term Third party guarantee) capital and Term
CONCESSIONAL RATE Loan Loan
OF INTEREST FOR Security coverage 100% and MCLR + 0.45% Security coverage 100% and RLLR + 0.75%
LOANS ABOVE above of the limit permitted above of the limit permitted
RS.50000/- AND UPTO
RS.20 CRORES FOR Security coverage above 50% MCLR + 0.70% Security coverage above 50% RLLR + 1.00 %
MANGALORE CIRCLE but less than 100% of the but less than 100% of the
limit permitted limit permitted
Applicable liquidity premium for term loans to be Applicable liquidity premium for term loans to
exempted be exempted

AREA SPECIFIC
SCHEME TO CHENNAI Particulars MCLR Particulars RLLR
CIRCLE
Security Coverage of 100% & above MCLR+0.95%. Security Coverage of 100% & RLLR + 1.25%
(DHARMAPURI, SALEM
of the limit permitted above of the limit permitted
& NAMAKKAL
DISTRICTS) FOR Security coverage above 75% but MCLR+1.20% Security coverage above 75% RLLR + 1.50%
FINANCING SAGO AND less than 100% of the limit but less than 100% of the limit
STARCH permitted permitted
MANUFACTURING Security coverage above 50% but MCLR+1.45% Security coverage above 50% RLLR + 1.75%
UNITS AT less than 75% of the limit but less than 75% of the limit
CONCESSIONAL RATE permitted permitted
OF INTEREST Applicable liquidity premium to be loaded Applicable liquidity premium to be loaded
additionally additionally

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

CANARA DALL MILL Collateral Security Collateral Security


SUPER comfort by way of comfort by way of
Working Working
mortgage of Term Loan mortgage of Term Loan
Capital Capital
immovable property, immovable property,
whose value is whose value is
100% and above MCLR + 1.05 MCLR + 1.55 100% and above RLLR + 1.35 RLLR + 1.85
75% & above but less MCLR + 1.30 MCLR + 1.80 75% & above but less RLLR + 1.60 RLLR + 2.10
than 100% than 100%
1.
Applicable Liquidity premium is to be loaded in 1.
Applicable Liquidity premium is to be loaded in
case of loans repayable above 1 year case of loans repayable above 1 year
2.
The following Interest concessions shall be 2.
The following Interest concessions shall be
extended subject to, ultimate rate of interest not extended subject to, ultimate rate of interest not
falling below respective MCLR : falling below respective RLLR :
a) 0.50% concession to Women beneficiaries a) 0.50% concession to Women beneficiaries
b) 0.25% concession to CGMSE covered accounts b) 0.25% concession to CGMSE covered
accounts

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

RICE SHELLERS Security comfort by way of mortgage of immovable Security comfort by way of mortgage of immovable
SCHEME property, either primary/ collateral/ property, either primary/ collateral/
Primary and Collateral put together whose value is Primary and Collateral put together whose value is

100% & above MCLR + 0.80 100% & above RLLR + 1.10
75% & above MCLR + 1.05 75% & above RLLR + 1.35
50% & above but less MCLR + 1.30 50% & above but less RLLR + 1.60
1.
Applicable Liquidity premium is to be loaded in 1.
Applicable Liquidity premium is to be loaded in
case of loans repayable above 1 year case of loans repayable above 1 year.
2.
The following Interest concessions shall be 2.
The following Interest concessions shall be
extended subject to, ultimate rate of interest not extended subject to, ultimate rate of interest not
falling below respective MCLR : falling below respective RLLR :
0.50% concession to Women beneficiaries 0.50% concession to Women beneficiaries

0.25% concession to CGMSE covered accounts a) 0.25% concession to CGMSE covered accounts

RICE SHELLERS
SCHEME Particulars Immovable ROI Particulars Immovable ROI
(KARNAL CIRCLE Security Comfort Security Comfort
OFFICE) Up to Moderate 100% & above MCLR+0.80 Up to Moderate Risk 100% & above RLLR +1.10
Risk / BBB rated ≥75% to< 100% MCLR+1.05 / BBB rated ≥75% to < 100% RLLR +1.35
accounts (Existing accounts (Existing ≥50% to < 75% RLLR +1.60
≥50% to < 75% MCLR+1.30
and New and New customers)
customers)
Up to Moderate 100% & above MCLR+1.05 Up to Moderate 100% & above RLLR +1.35
Risk & BB rated ≥75% to < 100% Risk & BB rated ≥75% to < 100% RLLR +1.70
MCLR+1.40
accounts (Existing accounts (Existing ≥50% to < 75% RLLR +2.10
≥50% to < 75% MCLR+1.80 Customers)
Customers)
Up to Moderate 100% & above RLLR +1.35
Up to Moderate 100% & above MCLR+1.05 Risk & B rated ≥75% to < 100% RLLR +1.70
accounts (Existing
Customers)

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
Risk & B rated ≥75% to < 100% MCLR+1.40
accounts (Existing
Customers)
For loans repayable more than 1 year upto 5 years and more than 5 years, the liquidity premium to be loaded to the Card rates
additionally, as given below:

Repayable > 1 year upto 5 years 0.40%


Repayable > 5 years 0.85%

Liquidity premium shall be stipulated/collected in all eligible cases. No concession/ waiver shall be permitted.

MAXIMUM MCLR w.e.f. 07/01/2019 - 8.70%

07/02/2019 - 8.70%

07/03/2019 - 8.65%

07/04/2019 - 8.65%

07/05/2019 - 8.70%

07/06/2019 - 8.70%

07/07/2019 - 8.60%

07/08/2019 - 8.50%

07/09/2019 - 8.40%

07/10/2019 - 8.40%

07/11/2019 - 8.35%

07/12/2019 - 8.35%

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
RLLR effective from 01.10.2019 - 8.30%
07.11.2019 - 8.05%
07.12.2019 - 8.05%

IMPORTANT INFORMATION:

 FOR MSME SEGMENT SPECIFIC PRODUCT CODE & SCHEME CODE REFER TO OUR HO CIRCULAR 156/2015.
 MSME units who approach our Bank for the first time seeking credit facility requirements of above Rs.10 lakhs and upto Rs.100 lakhs, which are
eligible to be covered under CGMSE, are to be duly verified through Due Diligence Services of the Credit Rating Agencies.
Branches/Offices to note that normal Due Diligence being done by the financing branch / Office, while processing the credit proposal shall
continue to be carried out by the branches / offices and the Due Diligence Report proposed from the external agencies is to be treated as an
additional comfort only and shall be optional. 707/2016.
 Memorandum of Understanding (MOU) for Due Diligence Services of MSMEs with the following agencies:707/2016
NAME OF THE AGENCY MOU VALID TILL
BRICKWORK RATINGS INDIA PVT. LTD. 01/02/2021
CRISIL LIMITED 01/02/2021
IRR ADVISORY SERVICES PVT. LTD. 01/02/2021
Acumen Business Consultancy 01/02/2021
M/S CARE Ratings Limited. (Earlier known as M/S Credit Analysis and Research 19/03/2021
Limited)
M/S Acuite Ratings & Research Limited. (Earlier known as M/S SMERA Ratings 04/04/2021
Limited)

CHARGES
M/S Brickwork Ratings India Pvt. Ltd.
Proposed Credit Facilities Fees
Upto & Inclusive of Rs.25 Lakhs Rs.6500/- + Applicable GST
Above Rs.25 lakhs up to Rs.75 Lakhs Rs.8500/- + Applicable GST
Above Rs.75 Lakhs Rs.10,500/-+ Applicable GST

M/S CRISIL Limited


Credit Exposure Fees
Upto Rs.1 crore Rs.12,000 + Applicable GST
>Rs.1 crore to Rs. 5 crore Rs.13,000 + Applicable GST
>Rs.5 crore to Rs.25 crore Rs.23,000 + Applicable GST

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
>Rs.25 crore to Rs. 50 crore Rs.33,000 + Applicable GST

M/S IRR Advisory Services Private Limited


Quantum of Bank Finance Fees
Upto Rs.1 Crore Rs. 7500 + Applicable GST

M/S Acumen Business Consultancy:


Upto Rs.2 Crore 5,000 + Applicable GST
Above Rs.2 Crore upto Rs.5 Crore 7,500 + Applicable GST
Above Rs.5 Crore upto Rs.10 Crore 7,500 + Applicable GST
Above Rs.10 Crore 10,000 + Applicable GST

M/S CARE Ratings Limited:


Upto Rs.1 Crore 7,000 + Applicable GST
Above Rs.1 Crore to Rs.3 Crores 9,000 + Applicable GST
Above Rs.3 Crores to Rs.5 Crores 11,000 + Applicable GST
Above Rs.5 Crores 14,000 + Applicable GST

M/S Acuite Ratings & Research Limited:


Irrespective of Loan amount 10,000 + Applicable GST

PROCESSING CHARGES/UPFRONT FEE –PRIORITY SECTOR LOANS (MSME) (387/2019)

• Maximum fees cap on Processing Charges and Upfront fees is removed.


• The modified charges will be effective from 01.09.2019.
• Branches/Offices to note that applicable GST and other charges if any are to be collected along with the Processing
Charges.

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

1. Working capital limits including short term loans repayable within 12 months

Fund Based & Non Fund Based Limits


SLAB - Limits RATE
Upto Rs. 2 lakhs Nil

Above Rs. 2 lakhs and upto Rs. 1 Rs. 250/- per lakh or part thereof.
crore

Above Rs. 1 crore Rs. 300/- per lakh or part thereof. No maximum cap

2. Term loans:

SLAB RATE
Upto Rs. 2 lakhs Nil

Above Rs. 2 lakhs and upto Rs. 1 crore 0.75% of the loan amount

Above 1 crore 1.00% of the loan amount


No maximum cap

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

Important Documents-
 Application- For MSE NF 998 Common application form for all types of MSE.
For Medium and Large Enterprises - NF 903 Along with CMA Data.
 CIBIL Report as per 436/2014
 Common Credit Reports - NF 622 For Traders & NF 741 for manufacturing enterprises.
 NF 588 credit investigation report – NF 588 (to be obtained for all credit facilities) from two Informants for loans up to Rs.50000/- and three
informants if the loan amount is more than Rs.50000/-.
 Resume of account is to be prepared for credit facilities wherever the information is required for appraisal.
 CIBIL MSME RANK” (CMR) - applicable to Existing & New MSME loans with aggregate Loan quantum (Present &
Proposed) of above Rs.10 lakhs upto Rs.10 crores
 Credit Scoring Model to decide about eligibility for availing finance under MSME sector - To decide about the eligibility of the
borrower for availing finance for first time from the bank.
 Common documents – Based on requirement and nature of credit.
NF 589 Details of co-obligant / guarantor.
NF 546 Specimen signature card.
If personal guarantee is stipulated -
NF 370 Guarantee Agreement and
NF 371 Guarantee covering letter
NF 373 Addendum for securities purchased / hypothecated.
NF 484 Certificate from the Borrowers regarding value of investment in Plant and Machinery to be obtained.
NF 368 Insurance waiver letter.
NF 540 Stock Statement
NF 814 Stock Inspection Report
NF 803 Letter evidencing execution of documents
NF 482 Certificate of loan paper obtained.
NF 855 Deed of Hypothecation. Wherever any security is created out of the loan / any security is hypothecated).
 Agreements –
A. LHV
NF 720 Hypothecation agreement re: vehicles.
NF 721 Letter of undertaking
NF 723 If any machinery / vehicle is taken as collateral security
RTO Forms 20, 29, 30, 35 in duplicate.
Others Original Invoice, Duplicate key, Stamped receipt, R.C., Insurance Policy
B. Loan / OD against valuable securities.
NF 969 Loans against deposits - VSL
NF 970 Loans/ advances against LIC policy/NSC/post office timed Deposits/bonds.
NF 865 & NF 969 Letter for loans/advances against the security of NRI deposits (PRIME / COLLATERAL)
NF 969, NF 865, DPN Loans against FCNR (B) deposits
NF 919 /NF 472 Supplemental letter for loans/advances against valuable securities – (Additional VSL).

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK
NF 972 & NF 971 Loans against Shares and Debentures security in the name of borrower.
NF 971 by both & NF 887 Application Loans against Shares and Debentures and units of mutual fund in the name of third party.
for 3rd party Security.
NF 372 Whenever Overdraft (OD) facility is granted.
C. NF 469 - DIR LOAN.
D. Documentation of working capital Facilities: OCC/SOCC/LUCC
NF 795 Open cash credit agreement.
NF 1001 Current account opening form.
NF 372 Request for overdraft facility.
NF 721 Letter of undertaking.
NF 480 DPN
E. Overdraft against book debts (ODBD)
NF 450 HYPOTHECATION AGREEMENT FOR BOOK DEBTS (This agreement need not be obtained if ODBD is given as a sub
limit under OCC)
NF 1001 Current account opening form.
NF 372 Request for OD facility.
APPENDIX – 67 Letter of Authority from borrower.
APPENDIX – 68 Statement of Book debts on monthly basis.
APPENDIX – 66 Letter of Authority from borrower.
F. Documentation for Term loans:-
NF 720 Hypothecation agreement re: machinery
NF 723 Collateral security agreement if any other machinery / vehicle is taken As collateral security
 If the total FB / NFB limit granted to a borrower is Rs.50 lacs or above “common hypothecation agreement” (CHA) is to be obtained instead of other
documents mentioned above. Branches to contact R&L section, CO for getting updated CHA.

CBS Options - OD/CC.


8051 CASA OPENING CHM07 OD Limit master maintenance.
BAM74 Security header maintenance. CHM06 OD security maintenance.
BAM46 Security Propagation. BAM83 MIS Cross reference maintenance.
CHM48 Account level variance maintenance BAM57 Interest adjustment transactions.
INQUIRY OPTIONS
BA434 Account to Security Inquiry. BA433 Security to Account Inquiry.
CH066 Limit to Security Inquiry BA020 Account Additional Information Master.
BAM84 Financial Security maintenance CHM08 CBR Code Maintenance
Loans
LN057 Loan Direct Account Opening CI142 Customer account relationship maintenance
BAM83 MIS Xref Maintenance BAM74 Security Header Maintenance
LNM34 LNM34 Loan Security link Maintenance LN521 Setup Account Schedule/Disbursement
1413 Loan Disbursement Inquiry BA020 Account additional information master maintenance
BAM72 Data on Restructured Loan
Inquiry Option
7026 Loan Balance Inquiry LN522 Account Schedule Inquiry

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LNM10 Account Transaction Inquiry BAM77 Insurance Policy Master maintenance
BAM67 Security Insurance cross reference maintenance BAM50 Common Billing Transactions
9540 Reversal of Wrong Credit LNM83 Account rate change
BAM57 Interest Adjustment to Loan account LNM35 Loan Account Master Attribute Maintenance
LN045 Loan Disbursement Reversal LNM38 Loan Approved Amount Maintenance
LNM33 Loan account address maintenance CIM12 Customer Contact Log Maintenance
LNM31 Account Payment Instructions 1065 Loan Installment Payment Inquiry
1068 Loan Advance Payment Inquiry 1067 Loan Full Payoff Inquiry
LN001 Loan Account Closure LN052 Taken Over Loan Details
CIM15 Customer NPA Master Maintenance AC002 Account Classification Inquiry
AC004 Account write off BA434 Account to Security Inquiry
BA433 Security to Account Inquiry LN500 Installment Calculator
LNM99 Loan Account CBR Details BA099 Priority Sector Data for Loan/Advance
LN063 Single Loan Account Transfer
MARKING NPA UNDER OD/OCC/SBTOD/CATOD AS LPD- Account should have been classified as NPA and RECALLED. Suspended Interest need not be
reversed. If OTS is permitted, update BAM54. Update LPD details in BAM59 and BA020 without fail.
AC002 Account Classification If the account is classified as LPD/suit filed account, tick on ‘Recall Account’ under ‘CRR Movement
Inquiry TAB’ in which case, the entire liability will be shown as overdue.
CH021 Account Account Details 1 TAB Appropriation Parameters:
Master Appropriation Control Flag(Non performing): Priority by sequence
Maintenance Appropriation Sequence(Non performing): CSLPOI
Appropriation Control Flag(Performing)
Appropriation Sequence(Performing): SLPOIC
CHM48 Account level When the limit expires, System charges applicable TOD rate.
variance Maintain variance to arrive at the applicable interest rate.
maintenance Select TOD/Over line/Credit interest
Click on the + sign In the Summary Line:
Start Date: Current Date
End Date: 31/12/2099
TOD Interest Variance: Required variance to prevailing clean rate.
All other fields should be left blank
CLASSIFICATION OF MSME IS BASED ON ORIGINAL INVESTMENT IN PLANT AND MACHINERY/EQUIPMENT.

ENTERPRISE MANUFACTURING SERVICES


MICRO Investment in plant and machinery Does not exceed Rs. 25 lacs. Investment in equipment does not exceed Rs. 10 lacs
SMALL Investment in plant and machinery is more than Rs. 25 lacs but Investment in equipment is more than Rs. 10 lacs but does
does Not exceed Rs. 5 crore not exceed Rs. 2 crore
MEDIUM Investment in plant and machinery more than Rs. 5 crore but Investment in plant and machinery is more than Rs. 2 crore
does not Exceed rs.10 crore but does not exceed Rs. 5 crore

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019
MSME - JHALAK

अस्वी करण ख्ड ्/्Disclaimer Clause

यह्सकरणलन्हमा े ् करणममचार यों्करणे्करणामकरणाजी ्ज्ञान्करणो्समृद्ध्करण ने् करणे्दृष्टिकरणोख्से् तैया ्ककरणया्गया्है् औ ्अद्यतन्औ ्सही ्जानकरणा ी ्प्रदान्
करण ने्करणे्ष्टलए्ह ्सभव्प्रयास्ककरणया्गया्है।
करणममचा ी ्प्रष्टिक्षख्महाष्टवद्यालय,्ष्टवषयवस्त्स मक् ककरणसी ्भी ्रुटसरय्या्चकरण्करणे्ष्टलए्करणोज्ष्टजमेमेदा ी ्या्दाष्टयव व्नहल्लेता्है, औ ्इस्सामग्री ्मक्
ष्टनष्टहत्जानकरणा ी ्ष्टवष्टभन्न्स्रोतों्से्"जैसा्है"्आधा ्प ्प्रदान्करणी्गज्है।
अष्टधकरण्जानकरणा ी ्करणे्ष्टलए, इस्पससतकरण्करणे्उपयोगकरणतामओं्करणो्भा्र ्बैंकरण पर परुटों, आजबी ए्कदिा-ष्टनदेिों, स करणा ी ्अष्टधसचनाओं,्बैंकरण्द्वा ा्
जा ी ्पर परुटों्आकद्करणा्भी ्सदभम्लेन्े करणी्सलाह्दी ्जाती ्है।्
सामग्री ्करणो्समृद्ध्करण ने्करणे्ष्टलए्यकद्करणोज्ससझाव्हो्तो्ज-मेल्द्वा ा्ष्टनमे्न्ज-मेल्प ्भेजा्जा्सकरणता्है्:
hostcrp@canarabank.com or hostc@canarabank.com

This compilation is prepared from the point of view of enriching the working knowledge of our employees and every effort
has been made to provide updated and correct information.
STC assumes no responsibility or liability for any errors or omissions in the contents, and the information contained in this
material, is provided on an “as is” basis from various sources.
For more information, the users of this book are advised to also refer RBI Circulars, IBA Guidelines, Govt. Notifications,
Circulars issued by the Bank etc.
Any suggestions for enriching the material may be sent by email to:
hostcrp@canarabank.com or hostc@canarabank.com
Complied by

REGIONAL STAFF TRAINING COLLEGE - AGRA


Updated till 31 DEC 2019

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STAFF TRAINING COLLEGE – MSME JHALAK -- DEC 2019

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