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Naini Udhyog Prasar for MSE
Naini Udhyog Prasar

Scheme for financing to Micro Small and Medium Enterprises

Eligibility :

The scheme is available to cover credit facilities to all eligible MSEs (Manufacturing & Services) as defined under MSMED Act, 2006. The micro and small (service) enterprises like advertising agencies, marketing/consultancy services, professional & self-employed persons like those engaged in mobile/TV repairing (not selling), small garage, juice shop, bakery owner, transport operator etc. However, following categories will not be eligible under the scheme –

  • Retail Trade

  • Educational Institutes

  • SHGs

  • Hotel /Motel and Lodges

Definition of Micro & Small Enterprises :

  1. Enterprises* engaged in the manufacture or production, processing or preservation of goods as specified below:
    Micro enterprise : Is an enterprise where investment in plant and machinery does not exceed Rs. 25/ lakh;
    Small enterprise : Is an enterprise where the investment in plant and machinery is more than Rs. 25/ lakh but does not exceed Rs. 5/ crore

  2. Enterprises* engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006) are specified below.
    Micro enterprise : Is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
    Small enterprise : Is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore

    *All individual/s, firms/ company /LLP etc.

Purpose :

Working Capital Limit : To meet the working capital requirement.

Term Loan / Demand Loan :

  • For construction of unit’s building and purchase/installation of plant, machinery & equipments.

  • Finance for commercial vehicle or other vehicle in the name of the Unit.


    Takeover of existing credit facilities from other banks/FIs.

Non Fund Based Facilities : For business purpose only.

Nature of Finance :
  • The facility may be either Cash Credit (working capital) limit or Term Loan/Demand Loan.

  • Composite loan up to Rs 100.00 lac. (For Term Loan and Working Capital both)

  • Non Fund Base facilities i.e. BG / LC

Non-Fund Based facility to those constituents who are enjoying fund based facility from other Bank/s should not be considered.

Quantum of Finance :

Maximum Rs.100.00 lacs per borrower for MSE sector (Manufacturing & Services).

Mode of Assessment :

For CC Limit :


    20% of projected & accepted sales or three (3) times of Capital & Quasi Capital. C. A. Certificate regarding Capital & Quasi Capital to be obtained.

  2. ABOVE RS. 10.00 LAC

    Cash Credit working capital limit is to be assessed as per turnover method, i.e., 20 % of projected and accepted annual turnover.
    The working capital limit shall be for a period of 12 months and to be renewed/ reviewed annually.

For Term Loan / Demand Loan :

Term loan can also be considered on the basis of cash flow subjected to minimum average DSCR of 1.5 for the full tenure of the loan and not less than 1.00 in any year.

Application Form for MSEs