• To provide credit facility by way of Fund Based/Non-Fund Based credit facilities to MSME units owned and managed by young entrepreneurs classified as MSME.
• The enterprises may be engaged and/or proposed to be engaged in manufacturing, production, processing or preservation of goods, providing/rendering services or trading activity.
• Term Loan can be provided for purchase/construction/renovation of factory, shop, showroom, office, business premises/godown or purchase of plant and machinery/other equipment or for incidental capital expenditure for business needs.
• Takeover of existing units from other lenders with satisfactory track record is allowed as per the Bank's applicable Loan Policy.

• Non-salaried Individual, Proprietorship Firm, Partnership Firm, Limited Liability Partnership (LLP), Private/Public Limited Company registered and incorporated under applicable law.
• Enterprises should be owned and managed by young entrepreneurs.
• In case of Partnership Firm, LLP, Private/Public Limited Company, partner's capital/share capital of minimum 51% holding with young entrepreneurs shall be considered as unit owned by young entrepreneurs.
• Applicant should have minimum age of 18 years and maximum age of 35 years at the time of sanction of credit facility.
• Any of the promoters may satisfy the age criteria, subject to compliance of minimum 51% holding by young entrepreneurs.
• Entity should have Udyam Registration Number (Mandatory) and GST Registration, if applicable.
• Existing facilities availed from other lenders should not be under SMA-1/SMA-2 category during the last 12 months.
• Group account(s) of the customer should not be under SMA-1/SMA-2 with the Bank/other lenders during the last 12 months.

Margin on Letter of Credit / Bank Guarantee

• Minimum 25% cash margin.
• ZLCC and above committee may allow reduction in cash margin by maximum 15%, subject to effective cash margin of minimum 10%.
• Where CGTMSE coverage forms part of overall security, LC/BG facility can be sanctioned with 25% cash margin.

Primary Security

• Charge by way of mortgage/hypothecation on entire fixed assets including movable and immovable and current and non-current assets, both present and future, created out of Bank Finance.

Security Coverage

• Charge by way of mortgage should be created on immovable security i.e. Land and Building offered as primary/collateral security or on any other liquid security.
• Minimum value of SARFAESI compliant immovable security (Land and Building)/liquid security should be 50% of the proposed exposure.
• If the limit is covered under Hybrid Security product of CGTMSE, minimum security requirement will be 40% of the proposed exposure and the remaining part of the credit facility up to ₹500 Lakhs will be covered under CGTMSE.

For Traders

• Minimum value of SARFAESI compliant immovable security should be 75% of the proposed exposure.
• If the limit is covered under Hybrid Security product of CGTMSE, minimum security requirement will be 60% of the credit limit and the remaining part up to ₹1000 Lakhs will be covered under CGTMSE.
• Limit up to ₹1000 Lakhs may be covered under the Credit Guarantee Scheme of CGTMSE.

UFR (UCO Float Rate) is stated as 8.05% presently in the scheme document.

Additional concession in RoI for SC/ST/Women/ZED certified MSMEs may be allowed by the respective sanctioning authority as per extant Bank guidelines.

• 50% concession in all applicable charges/commission.
• 25% of applicable processing charge to be recovered upfront.

• CMR of up to CMR-6
• Internal Credit Rating of up to UCO-6