Specialized Capital for Small Industries
Tailored financial solutions to bridge your business's credit gaps and drive industrial progress
The Bharat Laghu Udyog scheme is dedicated to providing timely and adequate credit to the Micro and Small Enterprise (MSE) sector. Whether you are setting up a new manufacturing unit or expanding an existing service business, this scheme offers both long-term capital through Term Loans and operational liquidity through Cash Credit facilities. We focus on the unique needs of small industries, offering competitive terms and repayment schedules aligned with your business cash flows.
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Purpose |
For acquiring fixed assets like factory premises, construction, or purchase of plant and machinery and working capital requirements. |
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Eligible Customers |
Micro and Small Enterprises (MSEs) as defined under the MSMED Act. |
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Margin (Min) |
Term Loan- 20% of Project Cost Cash Credit - 20%Ā of Current AssetsĀ Non Fund Based Limits ā10%Ā Cash Margin |
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Tenure / Validity |
Term Loan :Maximum 120 Months* (10 years), including any moratorium. Cash Credit: One Year, subject to annual review and renewal. |
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Security |
Term Loan - Charge on Assets created out of Bank Finance Working Capital Limits ā Current Assets Immoveable Property/ies/FD/ Any other acceptable security |
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Validity: The scheme is active under the Board-approved policy as of March 29, 2025.
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Share Membership (MSE Special Provision): For secured borrowings by MSEs, the linkage is2.50% of the borrowing. Crucially, only 1% is collected initially, with the remaining1.50% collected over the following two years.
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Moratorium Period: For Term Loans (3366), a gestation period of 3 to 36 months may be granted depending on the time required to implement the project and generate income.
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Pre-payment Charges: NIL for individual proprietorship concerns on floating rate loans.
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Registration: Units must possess a valid Udyam Registrationas per MSMED Act norms.
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Joint Borrowers: All co-owners of the security offered must be taken as Co-applicants or Joint Borrowers.
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End-Use: An undertaking for confirmation of end-use must be obtained, stating funds will be used strictly for the sanctioned purpose.
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Can I use the Term Loan to buy a second-hand machine?
Generally, Term Loans are for new assets; however, for specific equipment like used vehicles, repayment is restricted to 36 months. -
Is interest charged during the moratorium?
Yes, the borrower must service the interest amount on a monthly basis even during the principal repayment moratorium. -
What happens if I don't use the full limit?
Branches may recommend cancelling partially undisbursed facilities if they are not intended to be used.
As Applicable from time to time
|
Purpose |
For acquiring fixed assets like factory premises, construction, or purchase of plant and machinery and working capital requirements. |
|
Eligible Customers |
Micro and Small Enterprises (MSEs) as defined under the MSMED Act. |
|
Margin (Min) |
Term Loan- 20% of Project Cost Cash Credit - 20%Ā of Current AssetsĀ Non Fund Based Limits ā10%Ā Cash Margin |
|
Tenure / Validity |
Term Loan :Maximum 120 Months* (10 years), including any moratorium. Cash Credit: One Year, subject to annual review and renewal. |
|
Security |
Term Loan - Charge on Assets created out of Bank Finance Working Capital Limits ā Current Assets Immoveable Property/ies/FD/ Any other acceptable security |
-
Validity: The scheme is active under the Board-approved policy as of March 29, 2025.
-
Share Membership (MSE Special Provision): For secured borrowings by MSEs, the linkage is2.50% of the borrowing. Crucially, only 1% is collected initially, with the remaining1.50% collected over the following two years.
-
Moratorium Period: For Term Loans (3366), a gestation period of 3 to 36 months may be granted depending on the time required to implement the project and generate income.
-
Pre-payment Charges: NIL for individual proprietorship concerns on floating rate loans.
-
Registration: Units must possess a valid Udyam Registrationas per MSMED Act norms.
-
Joint Borrowers: All co-owners of the security offered must be taken as Co-applicants or Joint Borrowers.
-
End-Use: An undertaking for confirmation of end-use must be obtained, stating funds will be used strictly for the sanctioned purpose.
-
Can I use the Term Loan to buy a second-hand machine?
Generally, Term Loans are for new assets; however, for specific equipment like used vehicles, repayment is restricted to 36 months. -
Is interest charged during the moratorium?
Yes, the borrower must service the interest amount on a monthly basis even during the principal repayment moratorium. -
What happens if I don't use the full limit?
Branches may recommend cancelling partially undisbursed facilities if they are not intended to be used.
As Applicable from time to time