Case Study On MSME

BRIEF HISTORY
 Name : M/s Royal Industries
 Firm : Start up company
 Constitution : Proprietorship
 Proprietor Name: Mr. Ganesh (NW 8.5Lakhs)
 Line of activity : Manufacturer of steel furniture
 Experience : Yes
 Qualification : Activity related certificates
APPRAISAL ANALYSIS
Managerial

Technical Appraisal Economical

Financial
 APPRAISAL ANALYSIS
 MANAGERIAL – He is well experienced to handle the
firm.
 ECONOMICAL – His product has a good market and
long durability.
 TECHNICAL – He has got all statutory approvals to
start the unit.
 FINANCIAL – He brings Rs. 4 lakhs of margin with an
average DSCR above the benchmark rate, for 4 years.
 SUITABLE LOAN PRODUCT
 His Company is a startup unit.
 He is a micro manufacturer, who is in need of a composite
loan.(Working Capital and Term Loans)
 He hasn’t provided any security.
 No guarantee is provided.
 75% of Plant and Machinery = 7.5 Lakhs (Eligible Term Loan Limit)
 20% of Expected First Yr Turnover = 12 Lakhs (Eligible Working Capital
Limit)
 Total Eligible Loan Limit = 7.5+12=19.5 Lakhs.
 From the above mentioned criteria, the customer is eligible for IB
MICRO Loan Product.
 The Loan should be covered under CGTMSE scheme.
 CGTMSE Scheme
Reasons to include this account under CGTMSE
• He is an entrepreuner.
• No collateral has been taken
• No third party guarantee.
• Loan limit is below 200 lakhs and is eligible for CGTMSE
coverage.
• As it is a micro unit and the loan amount of Rs 19.5
Lakhs falls under the category of 5L-50L, 75% of the
amount can be claimed under CGTMSE, in case loan
gets default.
Conclusion:
 The IB Micro Loan can be Sanctioned for a limit of 19.5
lakhs ( Term Loan – 7.5 lakhs and Working Capital – 12
lakhs ).
 The Loan can be covered under CGTMSE Cover and no
need for third Party Guarantee
 The machinery and stocks to be treated as primary
security
THANK YOU