(Corporate Centre letter no. SME/SV/Cir-48/2008-09 dated 20.01.

2009) Simplified Common Application forms for Micro and Small Enterprises (MSEs) With a view to nurture the MSE sector and mitigating their difficulties, the Reserve Bank of India advised the Banking Codes and Standards Board of India (BCSBI) to evolve a code for this sector. The BCSBI in collaboration with IBA finalized a Code of Banks commitment to MSEs. In terms of para 5.1(a) of the Code, banks are committed to provide simple, standardized and easy to understand loan application forms to MSEs for which the BCSBI sought the help of IBA. IBA constituted a Working Group to devise simplified common application form for MSEs. 02. Based on the inputs given by member banks, the Working Group devised a common application form and checklist of documents (Annexure A) to be obtained from the applicant borrowers for all categories of MSEs. This standardized application form will be used by all borrowers in the MSE sector irrespective of the loan amount. However for loans above Rs 25 lacs the Working Group suggested that banks might obtain additional information from the borrowers as deemed necessary. 03. At present we have two products called SME Credit Card and SME Smart Score. Under the former maximum limit of credit facilities is Rs 10 lacs while in case of the later the same is Rs 50 lacs for SSI Rs 25 lacs for Trade and Services sector. Both these products are based on simple scoring model. 04. It has been decided to introduce the standardized application form and the checklist in the Bank for all categories of MSE borrowers for credit facilities upto Rs.25 lacs. However in cases of units covered under SME Credit Card and SME Smart Score schemes we have to seek additional information from the applicants so as to complete our credit scoring. Details of additional information to be sought are furnished in Annexure B. For all other units our normal existing application forms will be used.

ANNEXURE A STATE BANK OF INDIA:

APPLICATION FORM FOR MSEs

To be submitted along with documents as per the checklist

(For Office Use)

1 2 NAME OF THE ENTERPRISE REGD. OFFICE ADDRESS

ADDRESS OF FACTORY/ SHOP

WHETHER BELONGS TO SC/ST/OBC/MINORITY E Mail Address PAN Card No. Proprietory/ Partnership firm/ Pvt Ltd/ Ltd Company/ Co-op Society

Telephone No. (Office) Mobile No. 5 6 CONSTITUTION

DATE OF ESTABLISHMENT

7 NAME OF PROPRIETOR/ PARTNERS/ DIRECTORS OF COMPANY AND THEIR ADDRESSES

NAME Age Academic Qualification RESIDENTIAL ADDRESS TELEPHONE (Residence) Experience in the line of activity

ACTIVITY

Existing Proposed (#) # If a different activity other than existing activity is proposed

NAMES OF ASSOCIATE CONCERNS AND NATURE OF ASSOCIATION: Extent of Interest as a Address of Name of Associate Presently Nature of Prop./Partner/Director Associate Concern Banking with Association or Just Investor in Concern Associate concern

10 10(a)

Relationship pf Proprietor/Partner/Director with the officials of the Bank/Director of the Bank CREDIT FACILITIES (EXISTING) Limit (in lacs) Outstanding as on . Presently banking with Security Lodged Rate of Interest (Rs. in lacs) Repayment Terms

Type of facility Current A/c Cash Credit Term Loan LC/BG

If banking with this Bank, Customer No. be given here 10(b) It is certified that our unit has not availed any loan from any other Bank/ Financial Institution in the past and I am not indebted to any other Bank/ Financial Institution other than those mentioned in 10(a) above.

11

CREDIT FACILITIES (PROPOSED): Purpose for Type of Amount which facility (in lacs) reduired

Security Offered

Cash Credit Term Loan LC/BG

Whether Collateral Primary Security (Details Security offered (Please with approx. value to be mention yes or no) (If yes, mentioned) then provide details in Column 12) YES / NO YES / NO YES / NO

In case of term loan requirements, the details of machinery may be given as under:

Type of machine

Purpose for which required

Whether imported or indigenous

Name of supplier

Total cost of machine (in case of imported machine, the breakup of basic cost, freight, insurance and customs duty be given)

Contribution being made by the promoters

Loan required

12. Details of Collateral Security offered, if any, including 3rd party guarantee * (* As per RBI guidelines, banks are not to take collateral security for loans upto Rs. 5 lakhs to MSME units)

13

Past Performance/ Future Estimates (Actual performance for two previous years, estimates for current year and projection for next year to be provided for working capital facilities. However for term loan facilities, projections to be provided till the proposed year of repayment of loan): PAST YEAR-II PAST YEAR-I PRESENT YEAR NEXT YEAR (Rs in lacs) (Actual) (Actual) (Estimates) (Projection) Net Sales Net Profit Capital (Net worth in case of companies)

14 Status regarding Statutory Obligations: Statutory Obligation Whether Remarks (Any details in complied with connection with the relevant (Write Yes/No). obligation to be given) If not applicable, then write N.A. 1. Registration under Shops and Estd Act 2. Registration under SSI (Provisional/ Final) 3. Drug License 4. Latest Sales tax return filed 5. Latest Income tax return filed 6. Any other statutory dues remaining outstanding

15

SPACE FOR PHOTO

SPACE FOR PHOTO

SPACE FOR PHOTO

Signatures of Proprietor/ Partner/ Director whose photo is affixed above Only one photo of properitor / each Partner / Each working Director is required to be affixed. Each photo will be certified/attested by the Branch Team with name and signatures on the photograph with Branch stamp. The concerned staff will put his name below the signatures. 16 Date: Place:

I/We certify that all information furnished by me/us is true; that I/We have no borrowing arrangements for the unit except as indicated in the application; that there is no overdues/statutory dues against me/us/promoters except as indicated in the application; that no legal action has been/is being taken against me/us/promoters; that I/We shall furnish all other information that may be required by you in connection with my/our application that this may also be exchanged by you with any agency you may deemed fit and you, your representatives, representatives of the Reserve Bank of India or any other agency as authorised by you, may, at any time, inspect/verify my/our assets, books of account etc. in our factory/business premises as given above.

CHECK LIST OF DATA TO BE KEPT READY BY THE CUSTOMER (TO BE GIVEN TO THE NEW CUSTOMERS BY BRANCH)

1.

Proof of identity Voters ID Card/ Passport/ Driving License/ PAN Card/ signature identification from present bankers of proprietor, partner or Director (if a company). Proof of residence Recent telephone bill, electricity bill, property tax receipt/ passport/ Voters ID Card of proprietor, partner or Director (if a company). Proof of business address Proof of Minority Last three years balance sheets of the units along with income/sales tax returns etc. (APPLICABLE FOR ALL CASES FROM RS. 2 LACS AND ABOVE). However, for cases below fund-based limits of Rs.25 lacs if audited balance sheets are not available, then unaudited balance sheets are also acceptable as per extant instructions of the bank. For cases of Rs.25 lacs and above, the audited balance sheets are necessary. * Memorandum and articles of association of the Company/ Partnership Deed of partners etc. * Assets and liabilities statement of promoters and guarantors along with latest income tax returns. * Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable. * SSI registration if applicable.

2. 3. 4. 5.

6. 7. 8. 9.

10. * Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan. (APPLICABLE FOR ALL CASES FROM RS. 2 LACS AND ABOVE). 11. * In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions. 12. * Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken, addresses of all offices and plants, shareholding pattern etc. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS). 13. * Last three years balance sheets of the Associate/Group Companies (If any). (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS). Contd.

14. * Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity utilization assumed, production, sales, projected profit and loss and balance sheets for the next 7to 8 years till the proposed loan is to be paid, the details of labour, staff to be hired, basis of assumption of such financial details etc. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS). 15. * Review of account containing month wise sales (quantity and value both), production (quantity and value), imported raw material (quantity and value), indigenous raw material (quantity and value), value of stocks in process, finished goods (quantity and value), debtors, creditors, bank's outstandings for working capital limits, term loan limits, bills discounted. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS). 16. * Photocopies of lease deeds/title deeds of all the properties being offered as primary and collateral securities. 17. * Position of accounts from the existing bankers and confirmation about the asset being Standard with them (In case of takeover). 18. * Manufacturing process if applicable, major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors and the company's strength and weaknesses as compared to their competitors etc. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS). (The checklist is only indicative and not exhaustive and depending upon the local requirements at different places addition could be made as per necessity)

Annexure - B Additional Information to be sought in case of unit considered under SME Credit Card and SME Smart Score Schemes SME Credit Card: 1. Spouse 2. Taken Life Insurance Policy 3. Track Record of repayment of Personal Loan if availed

Employed / Homemaker Yes / No Prompt / Irregular

SME Smart Score: 1. Spouse Employed / Homemaker 2. Taken Life Insurance Policy Yes / No 3. Owning A House Yes / No 4. Factory Premises Owned / Rented 5. Number of Children 6. Deposit Accounts with SBI a. Average Deposit b. Period 7. Qualitative Information: Does the product require special know how? If so, are you in possession of the know Whether your line of activity falls under priority sector? What are raw materials required? How do you plan to procure them? Are they available on credit? If so what are the terms of credit? How do you plan to ensure the quality of your product? Any special steps being taken? What about the utilities like water, power etc? Please describe the requirements and how are they met? Whether you need skilled labour? Please describe your plants for skilled labour? Any special reason to locate your business at the present location? Is there any advantage in procuring the raw materials locally? Is the local market big enough to subscribe the finished product of your firm? Any other advantage? Manufacturing process in brief What the level of competition for the product? How do you plan to meet the competition? Give the total outside liabilities for the last 3 years and your tangible network PARAMETER YEAR I YEAR II YEAR III Total outside liabilities Tangible net worth (including loans from friends and relatives) TOL / TNW

What is the quality of your receivables? How many months sales do they represent? Can you give an ageing of your receivables? What is the quality of your finished goods inventory? Are they sold against order / as and when produced? Are they kept in stock for long? How many months sales do they represent? What will be the time period between procurement of raw materials to realization of sale proceeds? Can you cut short the cycle without increasing your liability? Give the details of cost and the means of finance for your project WHY DO YOU WHAT IS HOW DO YOU NEED TO THE BASIS COST OF PROPOSED TO ITEM PURCHASE OF YOUR THE ITEM ACQUIRE/ THE ITEM? COST PROCURE THE ITEM Land Building Machinery

Other Items What are the means of finance? MEANS From own sources Bank loan Friends and relatives Others Total Has the project been vetted by consultancy cell of the Bank or consultants of repute? Give details What is the repayment period you are looking for the term loan? What will be the annual cash accruals? What will be your liability towards payment of installments and interest on term loan in a year? Whether the cash accruals will be sufficient to take care of the repayment liability? AMOUNT FIVE DETAILS (BANK SHOULD BE SATISFIED ABOUT YOUR ABILITY TO PROVIDE THE MARGIN)