SME Products

BARODA VIDYASTHALI LOAN

Purpose

Eligibility

Limit
Security

Margin
RoI
Repayment
Period

To meet all types of needs required for:

Running of schools, colleges, educational institutes
Construction / expansion / renovation of building
Purchase of instruments, equipments, etc.
Working Capital requirement
Educational institutions, Schools, Colleges and other
education bodies running education activities set up by
Firms, Company, Trusts, Society, etc. (HUF are not eligible)
Minimum: Rs. 25.00 lacs
Maximum: Rs. 10.00 crores
Equitable mortgage of Land & Building (not
agricultural land)
Hypothecation of Instruments & Equipment acquired
out of the loan and other assets of the Educational
Institution
Personal guarantees of the Promoters of the Institution
25% of the cost of project
Base Rate+3.50% OR As per credit rating whichever is lower
Maximum 84 months (including maximum moratorium upto
2 years) depending upon projected cash flow

BARODA AROGYADHAM LOAN

Purpose

Eligibility

Limit

Security

To meet all types of needs required for:

Running of hospitals / nursing homes / pathological
labs.
Construction / expansion / renovation of building.
Purchase of instruments, equipments, etc.
Purchase of ambulance
Working Capital requirement
All entities i.e. Regulatory and expanded other than
individuals
The main Promoters should have requisite qualification in
any branch of medical science from a recognized University
and should have minimum 2 years of work experience. This
condition can be waived by Zonal Head subject to condition
that unit should employ qualified professionals who should
have requisite qualification in any branch of medical science
from a recognized university and should have minimum 2
years experience.
Rural
Rs. 0.50 crores
Semi Urban
Rs. 6.00 crores
Urban & Metro Rs. 12.00 crores
Notes:
Need based Working Capital limits may be considered
upto 10% of the annual sale or gross income, subject
to 20% of the above ceiling limit in case of borrowers
requiring both Term Loan and working capital facilities.
In case of only working capital requirements, limit to
be restricted to 20% of the above ceiling limit.
Working capital limit to be allowed by way of
Overdraft.
Equitable mortgage of Land & Building/premises of
Nursing Home/Hospital
Hypothecation of medical equipment/office equipment
acquired out of loan amount.
Personal guarantee of Promoter Director in case of
Limited Companies and Trustees in case of Trusts.
Hypothecation of all chargeable Current Assets

Margin
RoI

Collateral as may be available.

25%. Higher margin if collateral is inadequate.
As per credit rating.

BARODA LAGHU UDHYAMI CREDIT CARD

Purpose

To provide hassle free credit facilities to small business

units, retail traders, artisans, village industries, Micro &
Small Enterprises, professionals and self-employed persons,
etc.
Eligibility
All existing customers in the category of Small Business,
Artisans, Village Industries, Small Scale & Tiny Units,
Professionals and Self-employed persons having satisfactory
track record and dealing with the bank for last 3 years.
Limit
Maximum upto Rs. 10 lacs per borrower
Period / Validity The limit fixed under the scheme will be valid for a period of
three years subject to internal annual review based on the
conduct / operations of the account.
Security
Hypothecation of stock in trade, receivables, machinery,
office equipment, etc.
Margin
25%

BARODA SME LOAN PACK

Purpose

Eligibility

Composite
Limit
Margin
RoI
Security

To provide hassle free credit for working capital (fund based

and non-fund based) as also capital expenditure related to
the business of the borrower within the overall composite
limit sanctioned to the borrower.
All enterprises i.e. Micro, Small & Medium Enterprises, as
defined under MSMED Act, 2006, and other entities with
annual sales turnover upto Rs. 150.00 crores
4.5 times of borrowers tangible net worth as per last
audited Balance Sheet, or, Rs. 5.00 crores, whichever is
lower.
25%
As per credit rating.
Exclusive charge on the assets of the enterprise.
Personal
Guarantees
of
all
promoter
Directors/partners.
Charge on the unencumbered personal properties of
the partners, promoter
Directors, wherever applicable.
Third party guarantee in case of credit line above Rs.
100.00 lacs in case of Micro and Small Enterprises as
per regulatory definition.
Any other collateral for the credit line above Rs. 25.00
lacs for SMEs as per expanded definition (i.e. based on
Turnover criteria and Medium Enterprises) to maintain
asset coverage ratio above 1.25

BARODA OVERDRAFT AGAINST LAND & BUILDING

Purpose
Eligibility

Limit

Security

Margin

RoI

To provide hassle free credit to SME borrowers for working

capital requirements.
All enterprises i.e. Micro, Small & Medium Enterprises, as
defined under MSMED Act, 2006, and other entities with
annual sales turnover upto Rs. 150.00 crores
Minimum:
Rs. 25.00 lacs (for Rural/ Semi-Urban/Urban/Metro branches)
Maximum:
Rs. 50.00 lacs (for Rural branches)
Rs. 200.00 lacs (for Semi-urban branches)
Rs. 500.00 lacs (for urban & metro branches).
Mortgage of factory land and building and/or any
other property (Land & Building) belonging to the unit,
Promoters of the unit, or close relatives of the
promoters
Hypothecation of stocks / book debts (collateral
security)
Personal guarantee of all promoter directors / owners
of property.
Third party guarantee, if available.
Charge on unencumbered personal properties of the
promoter Directors, if available.
40% of the market value of property mortgaged (valuation
of the property is to be carried out by the valuer based on
banks approved panel / Government approved valuer).
Small Enterprises
- Base Rate + 3.25%
Medium Enterprises - Base Rate + 4.00%
SME (Expanded)
- Base Rate + 4.50%
OR
As per credit rating whichever is lower.

BARODA SME GOLD CARD

Purpose

To provide hassle free on the spot assistance to take care of

borrowers emergent requirements and tie up temporary
mismatch in liquidity arising out of delayed payment by
buyers, tax payment, execution of bulk orders, etc.
Eligibility
A/c in Standard Category for last 2 years with credit
rating of BOB-4 and above and enjoying working
capital limits of Rs. 25/- lacs and above.
Accounts having sole banking arrangement with our
Bank / proposed to be financed under Sole Banking
Arrangement.
No major inspection / audit irregularities.
RoI
As per Credit Rating and as applicable to Cash Credit
Period
12 months to be allowed on 4 occasions during the year
for a maximum period of 2 months on each occasion.
However, there should be a minimum gap of 15 days
between two drawals.
Security
As applicable to other regular credit facility.
Documentation No additional documentation / formalities required at the
time of availing facility every time as the 10% additional
limit will be a part of the regular sanction.

SME MEDIUM TERM LOAN

Purpose

Enterprise
Group
Eligibility

Loan Amount

Period
Security

RoI

To augment enterprises working capital gap and to help in

improvement of current ratio and also for meeting genuine
business requirements. The facility will also be available for
repayment of secured and unsecured Loans of other banks
or institutions, but not for any purpose, which is not related
to the enterprises activity.
Micro, small & medium enterprises as per Regulatory
definition and all other entities with annual sales turnover
upto Rs. 150/- crores
Satisfactory credit rating for the last three years
Latest Balance Sheet etc. should be available.
Satisfactory financial performance in terms of sales /
turnover and profits. Negative variance, if any, should
not be more than 10%.
Total Debt Equity Ratio should not be higher than
4.5:1 and Total Term Liability and equity ratio should
not be more than 3:1.
Average DSCR should not be less than 1.75:1
Satisfactory dealings with the Bank for at least three
years.
No major inspection/audit irregularities.
Upto 25% of the existing Fund based Working capital limits
in case of BOB-1,BOB-2 and BOB-3 rated accounts, 20% in
case of BOB-4 rated accounts, subject to a minimum of Rs.
25/- lakhs and maximum of Rs. 500 lakhs.
Not exceeding 36- months, to be repaid in equal quarterly
or half-yearly installments.
First charge / Equitable mortgage of fixed assets of the
Company / firm or extension of existing first charge/
equitable mortgage of fixed assets, ensuring that there is a
minimum asset cover of 1.25.
As per Credit Rating
Prepayment penalty of 1%, if loan is prepaid within
-24- months of drawdown

SME SHORT TERM LOAN

Purpose
Enterprise
Group
Eligibility

Loan Amount

Period
Security

RoI

To meet temporary shortfall/mismatch in liquidity, for

meeting genuine business requirements
Micro, small & medium enterprises as per Regulatory
definition and all other entities with annual sales turnover
upto Rs. 150/- crores
Satisfactory credit rating for the last three years
Latest Balance Sheet etc. should be available.
Satisfactory financial performance in terms of sales /
turnover and profits. Negative variance, if any, should
not be more than 10%.
Satisfactory dealings with the Bank for at least three
years.
No major inspection/audit irregularities.
Upto 25% of the existing Fund based Working capital limits
in case of BOB-1,BOB-2 and BOB-3 rated accounts, 20% in
case of BOB-4 rated accounts, subject to a minimum of Rs.
10/- lakhs and maximum of Rs. 250 lakhs.
Not exceeding 180- months minimum 90 days
First charge / Equitable mortgage of fixed assets of the
company / firm or extension of existing first charge /
equitable mortgage of fixed assets, ensuring that there is a
minimum asset cover of 1.25.
Extension of Charge on current assets for the additional
facility ensuring that adequate drawing power is available.
Extension of all existing guarantees of Directors / Third party
guarantees to cover the additional facility.
As applicable to existing Working Capital facilities

BARODA ARTISANS CREDIT CARD (BACC)

Purpose

Eligibility

Limit
Margin

Security
RoI

To provide adequate and timely assistance to the artisans to

meet their credit requirement both investment needs as
well as working capital in a flexible and cost effective
manner. The scheme is implemented in rural and urban
areas.
All artisans involved in production / manufacturing process.
Preference given to artisans registered with Development
Commissioner (Handicrafts)
Beneficiaries of other Government Sponsored loan Schemes
will NOT be eligible for coverage under BACC Scheme.
Maximum Rs. 2 lacs per borrower
For limits upto Rs. 25000/- :
No
margin
For limits above Rs. 25,000/- but upto Rs. 2 lacs: 15% to
25% margin.
Margin is subject to change as per RBI guidelines from time
to time or the banks policy in this regard.
Hypothecation of assets financed under the Scheme.
Upto Rs. 50,000/-:
Base Rate
Above Rs. 50,000/- to Rs. 2.00 lacs: Base Rate + 0.50%

COLLATRAL FREE LOANS UNDER GUARANTEE SCHEME OF CREDIT

GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES
Purpose
Eligibility

Limit
Security
Guarantee Fee

Banks
Initiative

To provide collateral free loans upto Rs, 100 lacs to Micro &
Small Enterprises, as defined under MSMED Act, 2006
All new and existing Micro and Small Enterprises (both in the
manufacturing sector as well as in the Service Sector) as
defined under MSMED Act, 2006
Term Loan and / or Working Capital / Non-fund based facility
upto aggregate limit of Rs. 100 lacs
Current / Fixed Assets of the unit. No collateral security /
third party guarantee
Composite all-in guarantee fee.
1% p.a. of the credit facilities sanctioned (0.75% in case of
limits upto Rs. 5 lacs and 0.85% in case of limits above Rs. 5
lacs and upto Rs. 100 lacs in respect of women, Micro
Enterprises and units in North East Region (including Sikkim)
50% of the guarantee fee is shared by the Bank with the
borrowers enjoying credit facilities up Rs. 50 lacs, to reduce
the cost to the borrower.

CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLCSS) FOR SSI UNITS

The CLSS is being implemented by the Ministry of MSME, our Bank is one
of the Nodal Agencies under the scheme.
The objective of the scheme is to facilitate technology upgradation by
providing the 15% capital subsidy on eligible plant and machinery or Rs.
15 lakhs, whichever is lower to Micro and Small Enterprises on
institutional finance availed by them.
If any borrower request for sanction of the Term Loan under CLCSS, the
application for availing the subsidy under CLCSS is to be submitted along
with the application for term loan.
The processing authority / sanctioning authority should verify the
eligibility of the unit under the scheme guidelines such as Category,
Sector / Sub-sector / Activity of the unit (as per SSI registration certificate
should be available at the application time), proposed machine (s) /
technology.
If the sanctioning authority for the Term Loan is satisfied with eligibility of
the unit, a clause should be included in the sanction letter to that effect
i.e. the term loan is eligible to be governed under the CLCSS. Please note
that no claim will be entertained for subsidy where the said clause gas not
been included in the sanction letter,
After sanction of the Term Loan, the last date of disbursement (if the loan
amount is less than Rs, 1 crore) or the disbursement amount for the
eligible machinery reaches upto Rs. 1 crore (if the loan amount is more
than Rs. 1 crore) is called the reference date. Immediately after the
reference date, all the claims should be submitted for subsidy duly
enclosing all the required documents within the stipulated time lines.
All claims are to be submitted to the Ministry of MSME through online
application and tracing system only through Zonal office. For the purpose
the ranches are required to submit the CLCSS claims in physical form to
the Zonal authorities through their Regional Offices.
As per the Ministrys extant guidelines for submission of the CLCSSS
claims, if the reference date falls in a particular quarter, then the subsidy
claim should be submitted and reach the Ministry of MSME within the last
day of the next quarter through online application and tracking system.
This last date for submission of the claim is called cut off date. (No
extension of time is given by MSME for whatever reason).
Once the subsidy amount is received, immediately it is to be kept in the
form of a non-interest bearing TDR for three years and interest is not to
be charged for the subsidy portion in the term loan account. After three
years, if all the conditions under CLCSS, particularly regarding the working
of machinery have been fulfilled, the subsidy can be credited to the
account of the beneficiary.
If the beneficiary unit under the scheme requests for transfer of its loan
liabilities / account along with TDR, the same can be allowed by the
concerned Zonal Authority duly ensuring certain conditions such as the

transferee Bank (take over bank of the account (is also acting as nodal
agency of PLIs (Prime Lending Institution) under any nodal agency under
the Scheme, etc.
Detailed guidelines on the scheme are available on the website of the
Development
Commissioner
(MSME),
Ministry
of
MSME
i.e.
http://www.dcmsme.gov.in

RATING SCALES FOR SME BY CRISIL

NSIC-CRISIL Rating Scale

Perfo
rman
ce
Capa
bility

Highest
High
Modera
te
Weak
Poor

CRISILs SME Rating Scale

Financial Strength
Hig Modera Low
h
te
SE1
SE1B
SE1
A
C
SE2
SE2B
SE2
A
C
SE3
SE3B
SE3
A
C
SE4
SE4B
SE4
A
C
SE5
SE5B
SE5
A
C

CRISIL
Rating
SME 1
SME 2
SME 3
SME 4
SME 5
SME 6
SME 7
SME 8

SME Definition
Highest
High
Above Average
Average
Below Average
Inadequate
Poor
Default

Rating Fees
NSIC CRISIL Performance
Credit Rating SSIs

& CRISIL SME Rating

Companies under operation*

Turnover (Rs. lacs)
< 50
50-200 >200
Rating
40,000 45,000 60,000
fees
(Rs.)
Service
Tax (Rs.)
Total
fees(Rs.)
Subsidy
from
NSIC
(Rs.)
Amount
payable
by SSIs
(Rs.)
Concessi
onal

4,994

5,562

7,416

44,944

50,562

67,416

25,000

30,000

40,000

19,944

20,562

27,416

9,157

12,017

16,023

Companies undue operation *

Turnover (Rs. crore)
<10 102550>75
25
50
75
Ratin
g
fees
(Rs.)
Service
tax
(Rs.)
Total
fees
(Rs)

6000
0

65000 7000
0

8500 11000
0
0

7416

8034

8652

1050 13596
6

6741
6

73034 7865
2

9550 12359
6
6

Fees **

* Companies under operation refer to SSIs / SMEs with audited results of one
complete year of operation
** Concessional Fees are applicable for CRISILs partner MoU Bank customers
and Industry Association members. The fees mentioned above inclusive of all
expenses CRISIL will incur in connection with the exercise.

LOANS UNDER INETERST SUBSIDY ELIGIBILITY CERTIFCATE SCHEME

OF KHADI AND VILLAGE INDUSTRIES COMMISION (KVIC- ISEC)
Purpose
Eligibility

Subsidy

To finance institutional financing agencies for lending to

Khadi & Village industries
Institutional financing agencies Khadi & Village industries,
Commission, State Khadi & Village Industries Boards,
Registered Institutions, Co-operative Societies
Interest subsidy limited to the difference between the actual
rate of interest charged by the Bank and 4% borne by the
borrowers.
Note:
Bank Finance Cell of KVIC will issue Interest Subsidy
Eligibility Certificate. On the strength of this certificate, the
eligible institutions may negotiate with Bank for finance
assistance. However, the financial decision to accept or
reject any loan to the eligible borrower is vested with the
Bank.
Claim should be computed on the loan amount indicated in
the ISEC or an actual availment, whichever is less, based on
the day to day transactions.

PRIME MINISTERS EMPLOYMENT GENERATION PROGRAMME

(PMEGP)
Objectives

Scope

Eligible
Entrepreneur
s / Borrowers

Selection of
Beneficiaries

Subsidy
Entitlement
&
Bank
Finance

To generate employment opportunities in rural as well urban

areas through setting up of self-employment ventures
To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans and unemployed
youth, so as to help arrest migration of rural youth to urban
areas
The Scheme is applicable to all viable (technically as well as
economically) projects in rural as well as urban areas, under Micro
Enterprises Sector
The maximum cost of the project admissible under manufacturing
sector is Rs. 25 lacs and business / services sector is Rs. 10 lacs
Only one person from family is eligible for obtaining financial
assistance under this scheme.
Assistance under this scheme is available only for new projects.
The assistance under the Scheme will not be available to
activities indicated in the negative list under the Scheme.
Any individual above 18 years of age.
The beneficiaries should have passed at least 8 th standard, for
setting of the project costing above Rs. 10 lacs in the
manufacturing sector and above Rs. 5 lacs in the business /
service sector.
Self help groups (including those belonging to BPL provide that
they have not availed benefits under any other scheme).
Institutions registered under Societies Registration Act, 1860.
Production Co-operative Societies
Charitable Trust
The beneficiaries will be identified and selected at the district level by a
taskforce consisting of representatives from KVIC / State KVIB / State
DICs and Banks and headed by the District Magistrate / Deputy
Commissioner / Collector concerned.
Subsidy from KVIC and the Bank finance depends on the cost of project
as per details given below:
Bank
Subsidy from KVIC
Promoters
Urban
Rural
Finance
Contributio
n
General
90%
15%
25%
10%
Category
beneficiary
/
institution
Special
95%
25%
35%
5%
category

beneficiary
/
institution
RoI
Repayment
Security

As applicable to MSE Sector

3 to 7 years with an initial moratorium not exceeding 6 months
Assets created out of banks finance
Personal guarantee of the proprietor / promoter
No collateral security upto Rs. 10 lacs
Eligible units will be covered under Credit Guarantee Fund
scheme for Micro & Small Enterprises CGTMSE (excluding Margin
Money / subsidy component)