MSME POLICY- (CIR -32/2024)

MSMED act 2006/ MODIFIED

2020

B V RAVI KUMAR NOTES

31.10.2024

URC – MANDATORY
URC : Udyam Registration
Certificate
FOR INFORMAL MICRO Enterprises :
 MUDRA(PMMY)- MSME - SCHEMES –
GOVT SPON
Shishu-50000 TAILO
Kishore- 50000 to 5 R
Lac MADE PMEGP
arun : 5 lac to 10 lac PMSVANIDHI
ANY LOAN AMT
GECL etc.,
SHG – 20 Lacs BUT
(CGTMSE COVER)
UPTO 5 CR
Agri allied-10 Lacs (MFG/SER)
UPTO 5 CR (TRADE)
 MSME
 INTERNATIONAL MSME DAY – 27th June

 “Simplified Common Appraisal Memorandum for MSMEs”

 Loans upto Rs 10 lacs -NF 1042

 Loans above Rs. 10 lakhs to Rs. 1 Crore -NF 1028
 Loans above Rs. 1 Crore to Rs. 5 Crore -NF 1029
 Loans above Rs. 5 Cr to Rs. 25 Cr –NF 1023
 Above Rs. 25.00 Crore - Long Format adopted by the Bank

 MSME sector provides

 Employment :120 million people.
 Manufacturing units : 630 lakh
 Products : 8000+
 MSM enterprises 63.4 million
 Contribute to 45% to MFG outputs
 40% of the total exports.
MSMEs contribute : 30 % GDP
 90% of MSMEs are unregistered with a large number in the
 MSME
Based on Iinvestment in

P&M
MFG ( INVESTMETN IN P & M)

OR

SERVICE (INVEST IN EQUIPMENT

Equipment
T/O
Does not exceed DOES NOT
EXCEED
1 CRORE MICRO 5 CRORES
MULIPLY
10 CRORES SMALL 50 CRORES
WITH 5
50 CRORES MEDIUM 250 CRORES

Any person who intends to establish a MSME may file Udyam

Registration online in the Udyam Registration portal, based on
self-declaration with no requirement to upload documents,
papers, certificates or proof
 URC Registration process
 Registration portal : Udyam Registration portal.
 NO fee for filing URC.
 Aadhaar number shall be required for URC.
 iv. The Aadhaar number shall be of the proprietor in the case of a
proprietorship firm, of the managing partner in the case of a
partnership firm and of a karta in the case of a Hindu Undivided
Family (HUF).
 PAN shall be mandatory.
 vi. In case of a Company or a LLP or a Cooperative Society or a
Society or a Trust, the organisation or its authorised signatory
shall provide its GSTIN and PAN along with its Aadhaar number.
 No enterprise shall file more than one URC: Provided that any
number of activities including manufacturing or service or both may be
specified or added in one Udyam Registration.
 Whoever intentionally misrepresents or attempts to suppress
the self-declared facts and figures appearing in the Udyam
Registration or updation process shall be liable to such penalty
as specified under section 27 of the Act

 Udyam Registration of PM SVANidhi beneficiaries is not

mandatory (MoHUA),


 UPGRADATION

 In case MSME upgraded due to investment in P & M or equipment

or turnover or both : Enterprise shall continue to avail of all non-
tax benefits of MSME for a period of 3 years from the date of such
upward change.

 Reverse-graduation

 Enterprise will continue in its present category till the closure of

the FY and
 it will be given the benefit of the changed status only with
effect from 1 st April of the following FY
 Khadi and Village Industries Sector (KVI): All loans to units in the KVI sector will be eligible
for classification under the sub-target of 7.5 % prescribed for Micro Enterprises under
priority sector.

 Other Finance to MSMEs: Loans up to ₹50 crore to Start-ups, as per definition of

Ministry of Commerce and Industry, Govt. of India that confirm to the definition of
MSME

TARGETS FOR LENDING TO MSME SECTOR BY DOMESTIC COMMERCIAL BANKS

Priority Sector (which include MSME sector) constitute 40 % of ANBC or CEOBE (H)

 MICRO ENERPROSES TAGER IS 7.5 % of ANBC or CEOBE (higher)

 As per recommendations of the Prime Minister's Task Force on MSMEs

 Achieve a 20% year-on-year growth in credit to Micro and Small Enterprises

 Achieve 10% annual growth in the number of accounts under Micro Enterprise

 60% of the total advances to Micro and Small Enterprises sector as on preceding
March 31st

 Should go to Micro Enterprises

 RBI advised to open atleast one specialised branch in each district.

 Bank has been permitted to categorise their general banking branches having 60% or
 INSTITUTIONAL FRAMEWORK
MSME Wing @HO:Exclusively facilitate growth and expansion of MSME business for the
Bank.
MSME Wing primarily consists of the following Departments/verticals.
 SME Business Unit :Formulating/Renovating policies and strategies and for MSME
business growth, taking into account the communications/guidelines received from
RBI/Govt. of India/SIDBI/KVIC/CGTMSE/other regulators and In-house Committees of the
Bank.
 SME Credit Group : Processing of SME proposals falling under HO powers
 SME Monitoring and Rehabilitation Centre : Monitoring of NPA slippage of accounts
and follow up of same for recovery of dues.
 CGTMSE Vertical (At MSME Wing Annex–Manipal : Coverage of Eligible accounts
under CGTMSE (NPA Marking, NPA Upgradation, Claim Preferment etc.,
 MSME Sulabh Monitoring Cell: Performance monitoring of MSME Sulabhs
(including Marketing officers linked to such Sulabhs).
 Government Sponsored Schemes (MSME) monitoring and Credit Guarantee Cell:
Implementation and monitoring of MSME Government sponsored schemes like
PMEGP, Stand-Up India, CLCSS, PM-SVANidhi, PMMY etc., including handling of
respective portals.
 GM’s Secretariat
 MSME Section at CO: Primarily responsible for driving MSME growth
 General Advances Section at RO: Handle all credit related matters falling under the
purview of RO, including MSME advances
 MSME Sulabhs w.e.f 01.07.2021. : Handle all fresh and enhancement MSMEproposals
(Except VSL & GL) beyond cumulative cut off limits of Rs 25 Lakh or branch DOP
whichever is less in case of Small/Medium/Large & VLB branch.
 Specialized SME Br (75) : General branches having 60% or more of their advances to
MSME sector
Issue of Ack of Loan Applications to MSME borrowers : INWARD IN
NB139 .

Rejection of MSME credit facilities : Concurrence of the NHA.

(However, proposals of CAC/MC powers may be rejected by MD &CEO

Time Norms for disposal of Applications BY

BRANCH:
 MSME PROPOSAL UPTO 5 LACS : 15 DAYS
 ABOVE 5 LACS : 30 DAYS.

 Collateral Security GUIDELINES

 Bank has mandated not to accept collateral security in the case of

loans up to Rs.10 lakhs extended to units in the MSE sector &
PMEGP .

 Bank may, on the basis of good track record and financial position of
the MSE units, increase the limit to dispense with the collateral
Delayed payment : In no case, the period agreed upon between the
supplier and the buyer shall not exceed 45 days from the date of
acceptance or the day of deemed acceptance. (PENALTY : 3 times of
Bank Rate COMPOUNDED - monthly)

Guidelines of our Bank in respect of enabling mechanism for meeting

payment obligations by Large corporates to MSMEs are as under :

While sanctioning/renewing credit limits to their large corporate

borrowers (i.e. borrowers enjoying WC limits of 10 crore and above
from the banking system), Bank to fix separate sub-limits, within the
overall limits, specifically for meeting payment obligations in
respect of purchases from MSMEs either on cash basis or on bill
basis
 • Any Credit Proposal to a Borrower(s) who has settled their dues with our Bank/ Other
Banks/NBFCs/FIs as part of a OTS/Compromise Settlement shall be subject to a
minimum cooling period from the date of settlement as under
Sacrifice Amount (as % of Book liability in our Bank and Minimum Cooling Period
outstanding in case of Other banks/FIs/NBFCs)
Up-to 10% 2 years
Above 10% and up-to 25% 3 years
Above 25% 5 years

• Loans to agriculture & allied activities and loans to weaker section including Gold loan
for agriculture purpose shall be kept outside the purview.
• Gold loans: RSA may sanction GL up-to their DOP after the cooling period of 24 Months
• No authority is empowered to waive cooling period up-to 24 months.
• ED-CAC and above may waive the condition of additional cooling period over and above
24 Months for exposures up-to their DOP.
• WOcredit card receivables with W/O up-to Rs. 10000.00 reported as non-wilful default in
CICs may be ignored after a cooling period of 24 Months

age 11 Learning & Development Vertical

CREDIT GUARANTEE SCHEMES:
Credit Guarantee Scheme is a tool for : i. Widening of credit portfolio ii. Better
management of risk iii. Faster recovery of dues iv. Enhancement of profitability

 CGTMSE :Credit Guarantee Fund Trust Scheme For Micro & Small Industries
COVERAGE : FB &/or NFB (single borrower) MS Enterprise for credit facility
PSB/Private/Foreign Banks & select FI : Upto Rs. 500 lakh (TL AND/OR WC)
SFB/RRB & CO-OP BANKS: Rs 200 Lacs
Micro finance institutions : Rs 50 Lacs
 Cap of ₹500 lakh is set the maxim guarantee coverage limit (irrespective of the unit activity including
Trading)
without any collateral security and/or 3rd party guarantees.
 Maximum guarantee coverage limit of Rs. 500 lac per borrower will be based on the O/S credit
facilities and the borrowers can avail incremental credit facilities

 Hybrid Security : MLIs will be allowed to obtain collateral security for a part of the credit facility,
whereas remaining unsecured part of credit facility, upto a maximum of ₹500 lakh, can be covered
under CGTMSE.
 CGTMSE will, however, have notional second charge on the collateral security.

 Any credit facility which has been sanctioned by the Bank with the interest rate charged as
per the RBI guidelines would be eligible for coverage under CGS of CGTMSE

 Credit facilities may be extended by more than one bank and/or FI jointly and/or separately
to eligible borrower up to a maximum of ₹500 lakh per borrower subject to ceiling amount of
individual MLI.
MLIs can now apply for guarantee cover anytime during the tenure of Loan
provided the credit facility
was not restructured /
Remained in SMA2 status in last 1 year from the date of submission of
application.

Provided further that, as on the material date:

 Credit facility is standard and regular (not SMA) as per RBI guidelines and / or
 Business or activity of the borrower has not ceased;
and / or
 Credit facility has not wholly or partly been utilized for adjustment of any
debt deemed bad or doubtful of recovery, without obtaining a prior consent
in this regard from the Trust.

 CGTMSE had further included Educational / Training Institution as eligible

activity
Credit facilities not eligible under the Scheme

 DICGC COVERED ACCOUNTS.

 Any credit facility in respect of which risks are additionally covered by
Government or by any general insurer or any other person or association of
persons carrying on the business of insurance, guarantee or indemnity.
 Any Credit facility upto ₹10 lakh to Micro Enterprises covered under
MUDRA.
 Any credit facility, which does not conform to, or is in any way inconsistent
with, the provisions of any law, or with any directives or instructions issued
by the Central Government or the RBI.
 Any credit facility which has been sanctioned by the lending institution
  Tenure of guarantee cover :

 Term loan/Composite credit. : Commence from the guarantee start date
and shall run through the agreed tenure of the term credit

 WC alone : Period of 5 years or a block of 5 years or for such period as

may be specified by the trust in this behalf.
 Guarantee for WC a/c can be renewed after completion of initial 5 years
block coverage. There is no maximum guarantee coverage period cap for
WC a/c.
 CGTMSE 236/2020 AGF

MLIs newly registered/which do not have sufficient history of

transactions under CGTMSE will be placed at 70% risk premium for a
period of at least 1 year
CALCULATION OF AGF BY TRUST :
TERM LOAN : Outstanding amount as on 31st December
Online module for updating the outstanding amount in respect of eligible guaranteed
 COVERGAE PERIOD

CGTMSE COVERAGE : WITH IN 15 days from the date of sanction

Invocation of guarantee

NPA MARKING

CGTMSE GUIDELINES : NEXT QUARTER END

BANK GUIDELIENS : 15TH OF SUBSEQUENT MONTH TO THE MONTH
IN WHICH ACCOUNT SLIPS TO NPA.

Preferring of claim of eligible NPA accounts under CGTMSE

CGTMSE GUIDELINES : Max period is 3 years from the NPA date

or lock-in period whichever is later
Bank guidelines : within 180 days of NPA date or expiry of
lock in period which ever is latter.
Lock-in period : 18 months from either the date of last
disbursement of the loan to the borrower or the guarantee start
date in respect of credit facility to the borrower, whichever is later,
has lapsed
 Claim preferment
Waiver of legal action : Rs. 10,00,000/- per claim
Presently, claims are settled by CGTMSE in 2 instalments i.e. 75% of eligibility amount
as first instalment & balance 25% of eligibility amount as second installment after
conclusion of recovery proceedings or when decree gets time barred

CGTMSE now offered MLIs 2 options for claim settlement at the time of claim lodgment
for cases where waiver of legal action is applicable (i.e. cases where claim amount
doesn’t exceed Rs. 10,00,000/- per claim while invoking guarantee based on the
aggregate outstanding amount considered eligible for claim settlement by CGTMSE):

Option 1: Single installment of claim settlement with reduced extent of guarantee by

15%. Eg: in respect of extent of coverage of 75%, reduced coverage would be 60%, 80%
would be 65% and likewise.(not chosen by the Bank)

Option 2: Existing claim settlement process in two instalments i.e. 75% of eligibility
amount as first instalment & balance 25% as second instalment. For legal waiver
accounts, second instalment of claim -would be settled after 3 years from the date of
settlement of 1st claim or OTS whichever is earlier.(chosen by the Bank)

Trust shall pay : 75 % of the guaranteed amount on preferring of eligible claim by the
lending institution, within 30 days (Trust shall pay @ Bank Rate for delay beyond 30
days)
Balance 25 % guaranteed amount : will be paid on conclusion of recovery proceedings
or till the decree gets time barred.

Lending institution shall be liable to refund the claim released by the Trust together
with penal interest at the rate of 4% above the prevailing Bank Rate, if such a recall is
made by the Trust in the event of serious deficiencies having existed in the matter of
appraisal / renewal / follow-up / conduct of the credit facility or where lodgment of the
claim was more than once or where there existed suppression of any material
Other important CGTMSE guidelines
 CGTMSE cover may be waived by RSA subject to the following:
 i) The borrower provides primary security or primary and collateral security
put together in the form of land and building to the extent of 75% of the
sanctioned limit, in addition to the security of assets created out of our finance
(exposure, if more than one limits are sanctioned).
 ii) The borrower shall be rated as low, normal or moderate risk based on the
latest Balance sheet .
 iii) All the accounts of the borrower shall be under standard category.

 “Udyam Registration Number is mandatory to cover under CGTMSE(CIM22)

MSME Units who approach our Bank for the first time seeking
credit facility requirement of above Rs.10 Lakhs which are
eligible to be covered under CGTMSE, are to be duly verified
(evaluated) through Due Diligence Services of the empanelled
Credit Rating Agencies..

 Credit facilities of upto Rs. 500 lakhs : Low, Normal or Moderate

Risk only may be considered for financing under CGTMSE coverage.
 Hybrid Security model of CGTMSE : upto ₹ 500 lakh : Low, normal or
moderate risk based on the latest balance sheet available also be
covered.
Other important CGTMSE guidelines
Lock-in period modification : . Lock-in period in respect of loans
having repayment period upto 36 months and loan amount upto
Rs.10 lakhs is only 9 months.

175/24 : Obtention of CGTMSE cover may be waived by RSA subject to the following :
In case of New Borrowers (prospective):
1. The borrower provides primary security or primary and collateral security put together in the
form of vacant land, land and building, Approved Securities to the minimum extent of 125%
of the sanctioned limit.
2. Vacant land can be accepted as collateral security to the maximum extent of 25%.
3. Borrower shall be rated as low, normal or moderate risk based on the latest ABS .
4. All the accounts of the borrower shall be under standard category.
In case of Existing Borrower:
5. The borrower provides primary security or primary and collateral security put together in the
form of land and building to the extent of 75% of the sanctioned limit, in addition to the
security of assets created out of our finance (exposure, if more than one limits are
sanctioned).
6. upto Moderate Risk only may be considered
 .

Modification in DOP applicable for non-schematic MSME lending

under CGTMSE coverage (branch power accounts only):

In case of branches linked to MSME Sulabhs : MSME Sulabhs shall be NHA

In all other cases, where branches are not linked to any MSME Sulabh : RO
is NHA
 Credit Guarantee Fund For Micro Units (CGFMU) – 402/2023
 CGFMU is the Trust Fund set up by GOI ,
 Managed by NCGTC as a trustee, with the purpose of guaranteeing payment
against default in Micro Loans extended to eligible borrowers by Banks under
PMMY.

 CGFMU cover for micro units under PMMY : Upto Rs10 Lac without obtaining any
collateral or 3RD party guarantee.
 Self Help Groups coverage : Rs 20 lakh
 CGFMU Covers PMJDY : Rs.10000/-
 Standard Basic rate : 1% of sanctioned/outstanding amount, as the case maybe
 Currency or Life of the guaranteed portfolio is 4 years, i.e., base year plus 3
complete financial years.
 SHISHU category loans, i.e.,upto Rs.50,000 are eligible for CGFMU guarantee cover if ROI
charged should not exceed 12% p.a.
 There is no such cap on ROI for loans granted under “KISHOR” & “TARUN”
 Concession in guarantee fee i.e. 0.5% p.a. for micro units in Aspirational districts has been
withdrawn
 Credit Guarantee is available on a portfolio basis and not on individual loan basis,
i.e., all the eligible loans granted under PMMY shall be centrally covered under CGFMU at
HO level on quarterly & branches need not cover the loans individually.
 For TL : AGF shall be charged on the outstanding amount as on April 01 of
the FY
 For WC accounts: AGF shall continue to be charged on sanctioned amount
CGFMU) – 402/23

 The guarantee is in the nature of “First Loss Portfolio Guarantee”

wherein first loss to the extent of “3% of the Amount in Default”
shall be borne by the Bank and will be excluded for the claim.

 The amount in default over and above 3% will be settled by the

fund to the extent of 75% on pro-rata basis, subject to submission
of an Auditor’s Certificate confirming eligible claim amount.

 However, the total claim pay-out ratio would be capped at 15% of

the Crystallized Portfolio.

 This pay-out cap of 15% shall not be applicable for CGFMU-SHG

portfolio (Rs 10 lakh up to Rs 20 lakh)

 Government sponsored schemesDAY-NULM, DAY-NRLM, PMEGP :

upto Rs.10 lacs
 Activities allied to Agriculture : Rs 10 Lacs
 Credit Guarantee Scheme For Standup India (CGSSI ):

In order to increase the pace of lending under Standup India Scheme, GOI
introduced Credit Guarantee Scheme for Standup India (CGSSI).

Brief details of the scheme are, as under:

 CGSSI shall be maintained and operated by NCGTC.

 CGSSI facilitates Credit Guarantee of all eligible A/CS sanctioned under

Stand-up India.

 Fund shall cover assistance of over Rs.10.00 Lakhs and upto Rs.100 Lakhs
inclusive of WCl extended under Stand Up India scheme to a single eligible
borrower without
obtaining any collateral or 3RD party guarantee.

 Fund shall provide guarantee cover to the extent of

 Rs.10 Lakhs and upto Rs.50 Lakhs : 80% of the amount in default for
credit facility above, subject to a maximum of Rs.40 Lakhs.

 For above Rs.50 lakhs and upto Rs.100 Lakhs : Rs.40 Lakhs
 +50% of the balance amt in default above Rs.50 Lakhs subject to Max
Rs.65 Lac
Credit Enhancement Guarantee Scheme For Scheduled Castes (CEGSSC)

OBJECTIVE : Promote entrepreneurship among the SC population in India

Introduced : Ministry of Social Justice and Empowerment, GOI

Implemented by : “Industrial Finance Corporation of India Ltd (IFCI)

Brief details of the scheme are, as under:

 Scheme aims at guaranteeing the financial assistance extended by the

Banks and Financial Institutions to SC entrepreneurs by providing credit
guarantee through the CEGSSC.

 Envisaged for Small and Medium Enterprises, projects/units being set up,
promoted and run by Scheduled Caste entrepreneurs in Manufacturing,
Trading and Services Sector.

 Primary Sector such as Commercial agriculture, Food processing,

Horticulture, Poultry etc. are also eligible

 Scheme cover credit to a single eligible borrower by way of WC, TL or

Composite Term Loan facilities without any collateral security and/or 3rd party
guarantees.

 The minimum loan amount can be covered under the scheme is Rs.15 lacs
Coverage By Export Credit Insurance From Export Credit Guarantee
Corporation
(ECGC)

 Pre-shipment Credit: Bank has subscribed to Export Credit Insurance for

Banks -ECIB (WTPC), which covers all packing credit advances granted by the
Bank excluding advances granted to Government Companies

 Any company in which not less than 50% of the paid up share capital
is held by the Central or any State Government or partly by the
Central Govt and partly by one or more State Govt and includes a
company which is a subsidiary of a Govt company)

 Post-shipment credit: Post-shipment credit under Export Credit is covered

under Post-Shipment Credit under Export Credit Insurance for Banks (Whole
Turnover Post Shipment) [ECIB. (WT-PS)] of ECGC. The premium in respect
of ECIB (WT-PS) is borne by the Bank and not to be recovered from
exporters.

 In addition to Whole Turnover Post Shipment Guarantee (ECIB-WTPS),

individual Buyer wise Policy to be obtained by the exporter client.
However, bank may consider waiver on selective basis,
Credit Guarantee schemes in collaboration with CGTMSE and various State Govt

Manipur Credit Guarantee Scheme(MCGS):

CGTMSE guarantee Coverage : 75%-85% & Balance 25%-15% by Govt. of Manipur.

Assam Credit Guarantee Scheme :

CGTMSE guarantee Coverage : 75%-85% and Balance 25%-15% by Govt of
Assam.
Claims settlement : Maximum up to 10% NPA level of crystallized portfolio (portfolio will
be crystallized every FY).
However, claim received in respect of NPA level above 10%, CGTMSE will honour its share
i.e. 75% - 85%.

Tamil Nadu Credit Guarantee Scheme (TNCGS): Under the Scheme, 75% -85% of
guarantee coverage for all credit facilities will be provided by CGTMSE as hither to, and
balance guarantee coverage would be by State Government of Tamil Nadu depending upon
the category and loan amount with a maximum coverage upto 90%.

Goa Credit Guarantee Scheme : 75% - 85% of the guarantee coverage for credit facilities
will be provided by CGTMSE as hitherto depending upon the category of the borrower and
balance 20% - 10% coverage shall be provided by Government of Goa, taking the overall
guarantee coverage to 95%.

Meghalaya Credit Guarantee Scheme : Overall 95% of the guarantee coverage for
a credit facility will be provided by CGTMSE and GOM.
Claims settlement : Maximum upto 10% NPA level of crystallized portfolio
(portfolio will be crystallized every FY). However, claim received in respect of
NPA level above 10% will be settled under normal credit guarantee scheme of
 FRAMEWORK FOR REVIVAL AND REHABILITATION OF MSMEs
 Objective : To provide a simpler and faster mechanism to address
the stress in the accounts of MSMEs and to facilitate the
promotion and development of MSMEs.

 RBI has issued guidelines on framework of revival and rehabilitation of

MSME units having loan limits upto Rs. 25 Crores.

 Before a loan account of an MSME turns into a NPA, Banks or

creditors
should identify incipient stress in the account by creating 3 sub
categories
under the SMA category as given in the framework.

“Standby Credit Facilities” for MSEs:

“Standby Credit Facility” may be considered to fund unforeseen project cost
overruns, if needed. Such “Standby Credit Facilities” are sanctioned at the time of
initial financial assessment; but disbursed only when there is a cost overrun.

Can be sanctioned : 20% of the sanctioned limit or DOP whichever is lower for Low/Normal Risk

10% of the sanctioned limit or DOP whichever is lower for Moderate a/c
Export credit shall be : 10% of the sanctioned limit or the DOP whichever is lower
Standby Credit for Capital Expenditure of
MSMEs

 Purpose : To meet unforeseen/contingent requirement for

acquiring fixed assets like, generator set, balancing equipments,
replacement of existing machinery items, moulds, jigs etc, to maintain
production and /or to acquire necessary equipments/machinery for
modernization of the unit.

 Term Loans : 25 % of the original value of the existing P & M

subject to a
maximum of Rs.25 Lakhs, at the time of each renewal of WC limits.

 Margin : 15 to 25% of the cost of FA to be acquired under the loan.

 Adhoc Credit Facility (Circle Head CAC)

 EXTRA ROI : 2 % (EXPORTER NO EXTRA ROI)

 (ADHOC : 2 TIMES IN A FY)
 MAXIMUM PERIOD OF ADHOC : 90 DAYS
General Guidelines : (MSME POLICY)
Latest 3 YEARS financial statements shall be analysed and carry out the comparison
of the financials. In case of any huge deviation the same shall be analysed & justified

For aggregate credit limits of over Rs. 20 lakhs (both FB and NFB including term loan /
DPG), ABS to be obtained.

All documents provided by the CA should mandatorily contain UDIN.

Pre and Post sanction inspection

Eligible new borrowers as well as existing borrowers having FB or NFB exposure

of Rs.5 crore & above from the Bank, shall submit Legal Entity Identifier (LEI)
Code (within specified timelines) along with the loan application.

Rs. 5 Crores and above upto Rs 10 Crores : 30.04.2025

In cases of limits are above Rs.5.00 crore, a copy of the passports of the
Promoters/ Promoter Directors and Guarantors to be mandatorily obtained

In case of groups, Banks may review financials of major group companies

(Contributing
at least 10% to the Top-line or Bottom line of the consolidated group financials)
and
consolidated financial of the company.

Short Term Loans - All term loans with maturity in excess of one year
Medium Term Loans - Above 1 year up to 3 years
General Guidelines : (MSME POLICY)
 641/24 : Renewal of MoU with agencies for entrusting Due Diligence Services for MSME
External Due Diligence from such agencies has been made Mandatory for MSME who
approach our Bank for the first time seeking credit facility requirement of above Rs. 10
lakhs andcopy
Agency-soft are eligible to be
of Report covered
to be given under CGTMSE
in 3 days Amount Bracket Charges
M/s. Acumen Business Consultancy Pvt. Ltd. Upto Rs.2 Crore Rs 5,000
Rs.2 Crore upto Rs.10 Crore Rs 7500
Above Rs.10 Crore Rs 10000/-
M/s. Infomerics Analytics and Research Upto Rs.25 lakhs Rs 5,500
Private Limited Rs.25 lakhs upto Rs.75 lakhs Rs 7,500
Above Rs.75 Lakhs Rs 9,500
M/s. CRIF Solutions Private Limited Up to Rs. 75 Lakhs Rs 5000
Above 75 lacs Rs 6000
 TAT : 3 working days (start from the date when email is sent to the DESIGNATED) g.
Failure to furnish the report within the stipulated TAT, following penalties shall be levied:
TAT for Providing Due Diligence Report Charges
Within 3 days Contractual Charges will be paid
After 3 days to 7 days 50% of the Contractual Charges will be paid
Above 7 days NIL – No Charges will be Paid
Renewal of MoU) with M/s. SMERA Ratings Pvt Ltd for entrusting Due
Diligence Services for MSME valid till 02.08.2027.

 M/s Acumen Business Consultancy Private Limited, for a further period of 3

years with existing charges, valid from 03.08.24 to 02.08.27.
 M/s Infomerics Analytics and Research Private Limited, for a further period
of 2 years with existing charges, valid from 15.09.2024 to 14.09.2026.
 M/s CRIF Solutions Private Limited, for a further period of 2 years with
modification in charges, valid from 20.09.2024 to 19.09.2026.

External Due Diligence report from empaneled agencies for MSME units
who approach our Bank for the first time for the credit facility
requirement of above Rs.10 lakhs and eligible to be covered under
CGTMSE,

Irrespective of loan amount (CHARGES) : Rs 12000/-

CREDIT INFORMATION REPORTS:
 (i) M/[Link] CIBIL Limited
 (ii) M/s. Experian Credit Information Company India Private Ltd.
(ECICI)
 (iii) M/s. Equifax Credit Information Services Private Ltd. (ECIS)
 (iv) M/s. CRIF High Mark Credit Information Services Pvt. Ltd.
(CHMCIS

 MSME Secured loans upto 10 lac: only one CIR to be obtained

 MSME secured loans above Rs. 10 lakhs : 2 CIR
 ABOVE 10 lakhs and upto Rs. 10 Cr : One from CIBIL including
CMR and another report from any of the CICs
 MSME CMR RATING (10 LACS TO 10
CR)

• Applicable to Existing & New MSME loans with aggregate Loan

quantum (Present & Proposed) of above Rs.10 lakhs upto Rs.10
crores

• CMR measures MSMEs on a rank scale of 1 to 10.

• 1 being the best rank and 10 being the worst.

•
• CMR will be automatically generated along with Commercial
Credit Information Report at the time of generating the same
(CIBIL RS 500 + CMR 500=RS 1000)

age 34 Learning & Development Vertical

 CREDIT RISK RATING (190/20 &
• CRR IS A PRE- SANCTION EXERCISE.
171/20 FOR CIRM)
• AGGREGATE OF ALL FB AND NFB LIMITS (PRESENT & PROPOSED) OF A
BORROWER –DECIDES MODEL
• CREDIT RISK RATING PURPOSE : DOP/ROI
• INTERNAL RATING SHALL BE ENTERED IN BAM 88 FOR ANY MODEL.
• EXTERNAL RATING GRADES HAS TO BE ENTERED IN BAM 89.
• Our bank is adopting 4 models under Risk rating.
• 1) PORTFOLIO MODEL- Applicable for loans upto2 lakhs & Loans
• 2) SMALL VALUE MODEL – ABOVE 2 LACS TO 20 LACS
• 3) MANUAL MODEL- ABOVE 20 LACS TO 200 LACS
• 4) CIRM / CIRM HYBRID – ABOVE 200 LACS
• CIRM Hybrid Model : 2 Cr to 7.5 Cr
• In case down-gradation in rating is by 2 or more notches, 25% additional collateral
shall be obtained within a time frame of 6 months from the date of downgradation
In case additional collateral security is not perfected within 6 months : + ROI of 1%

age 35 Learning & Development Vertical

ECAI (EXTERNAL CREDIT RATING : 25 CR & ABOVE

In case of externally unrated borrowers with exposure

Above Rs 25 Crores up to Rs 100 Crores : Additional interest 0.50%
Exposure above Rs 100 Crores : Additional ROI 1 % above ROI.

Timelines for obtention of ECAI :

Green field projects : 6 months from the date of first disbursement
In case the borrower has already applied for external rating and accepted the offer for
external rating by the rating agency, RSA may permit time upto 3 months from the date of
sanction for obtention of ECAI

Facility Rating for Corporate Loan Portfolio (Exposure Above Rs. 7.50 Cr FB+NFB):

Canara Bank Proposal Rating (CBPR) : MSME loans for >= Rs.10 crore (FB + NFB).

Credit Scoring Model : To decide the eligibility for availing finance under MSME.

ApplicabIlity : MSME applying for loans from our Bank for the first time
Exposures upto an aggregate amount of Rs.2 crores).
Fetch at least 60% of the marks to become eligible for finance.
Rejection of the loan proposals of MSME entrepreneurs who score less than 60% marks shall
be done by the NHA.
 PSB loans in 59minutes :
 New-age digital lending platform that has been put into
operation to apply and get “in Principle Sanction” for Business
Loans within 59 minutes without any physical contact with Bank
Branch.

This web portal is enabled for in principle approval for MSME loans under
 MUDRA category and Other loans upto Rs. 5 Crores within 59
minutes.

 The Portal reduces TAT. Subsequent to this in-principle approval, the

loan
 is required to be sanctioned & disbursed in 7-8 working days.

 Tie-Up with Fin-techs : (MSME SUGAM)
 Bank has entered into tie up arrangements with the Fin Tech Company
‘M/s. Basix Sub-K iTransactions Limited
 Source eligible MSE proposals up to and inclusive of Rs.10 LACS
in the
service areas of the designated Circles/Branches.
 Trade Receivables Discounting System (TReDS):

 The Scheme facilitating the financing of Trade Receivables of MSMEs from

Corporate and other buyers, including Govt. Departments and PSUs
through multiple financiers is known as “TRADE RECEIVABLES
DISCOUNTING SYSTEM (TReDS)”.

 Our Bank is on boarded for participating as ‘Financing Bank’ on the TReDS digital
platform of M/S .RXIL, M/[Link] Ltd. (Invoicemart) and M/[Link]
Solutions (M1xchange) for online discounting of trade receivables by
executing Master Agreement with them.

 Further, Bank has established 2 TReDS Cells i.e. at

 SMCB BKC Branch-Mumbai and
 Infantory Road (II) Branch- Bengaluru

 ECAI Rating of Buyer to be approved for discounting on TReDS platforms shall be

‘A-’ and above for non-constituent type of buyers &
 BBB and above for constituent type of borrowers.
 However, ECAI rating in respect of Central/State Govt has been waived off.
 The tenability of the limit fixed to the buyer is 1 year from the date of
sanction
 Bills upto a tenor of 180 days can be quoted for discounting on the platform.
 End to end digitization of Shishu Mudra Loans” for existing
customers, as per EASE 3.0 PSB Reforms.
 End to End (E2E) digitization of Shishu Mudra loans under (STP)
mechanism for existing customers of the Bank.
  Online validation of KYC and Udyam Registration Certificate.

  Sanction of loans up to Rs 50,000/- based on pre-defined business

rule engines.
  Digital Document Execution (e-stamping and e-signing) by the
borrower.
 System has the following capabilities:

  KYC validation.
 URC verification.
 Eligibility Check based on the set of business rule engines.
 End to end processing of loan
 Digital document execution (e-
stamping & e-signing)


 “Jansamarth Portal” (also known as National Portal)

 In this background, the following Credit linked Govt. MSME

schemes have been made eligible for routing through the
Jansamarth Portal:

 i. Pradhan Mantri Mudra Yojana (PMMY)

 ii. Weavers Mudra

 [Link] Up India
 Pradhan Mantri Mudra Yojana (PMMY):

 Pradhan Mantri Mudra Yojana (PMMY) was launched on April 8, 2015 by the GOI in order
to provide financial support primarily to Micro Enterprises.

 An overdraft amount Rs 10,000/- sanctioned under PMJDY also classified under MUDRA

Category Slab
SHISHU Loans upto Rs.50,000/-
KISHORE Loans above Rs.50,000/- and upto Rs. 5.00
Lakhs.
TARUN Loans above Rs.5.00 Lakhs and upto
Rs.10.00 Lakhs
 Maximum loan quantum under PMMY is limited to Rs.10.00 Lakhs.
 Credit facility is extended by way of TL and/or WC.
 Collateral Security: Not to accept collateral security in the case of loan up to Rs 10 lakh
extended to units in the MSE Sector.
 CGFMU guarantees micro units under PMMY upto the specified limit of Rs.10.00 Lakhs,
without obtaining any collateral or 3rd party guarantee.
 ix. A separate Scheme Code “75410 – PMMY-MUDRA YOJANA” has been created for
opening of loans in CBS under PMMY
 Stand Up India Scheme (SUI):

 Scheme was launched with a view to promote entrepreneurship among SC/ST & Women
entrepreneurs.
 LOAN AMOUNT : Rs.10 Lakhs to Rs. 1.00 crore

 ELIGIBGLE : SC OR ST OR/and Women Entrepreneurs

 FINANCE ONLY TO : New Enterprise (Greenfield Project) in MFG, Trading and services
sector or agriculture allied activities and services supporting these.
 Credit facility : Composite loan (WC+TL)

 MARGIN : 15%

 In cases where the borrower is eligible for Central / State Govt. subsidy, the subsidy
amount can be reckoned as margin brought in by the borrower. However in such cases,
the borrower should contribute at least 10% of the project cost as margin.)
 GUARANTEE : Credit Guarantee Scheme for Stand Up India (CGSSI).
 PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)” scheme for Street vendors

 The Street Vendors will be eligible to avail a Working Capital Demand Loan (WCDL)

 Ist Tranche : Loan of upto Rs.10, 000/- with tenure of 1 year and repaid in monthly.

 2nd Tranche : On timely or early repayment, the vendors are eligible for 2nd tranche
loan with minimum loan of Rs 15000/- and maximum loan amount of Rs 20000/-

 3rd Tranche : Rs. 50,000/- may be considered to the eligible beneficiaries, subject to
successful repayment of the 2nd tranche. Bank shall ensure marking of the 2nd loan
as closed, for processing the 3rd loan.

 Interest Subsidy : @ 7% for all the loans i.e. 1st, 2nd and 3rd loans. Interest subsidy
claims on all loans under the scheme will be paid till March, 2028.
 Interest Subsidy claims to be paid on quarterly basis. (June 30, September 30,
December 31, and March 31 of each year.) – HO CIR 644/2O22
 Deendayal Antyodaya Yojana - National Urban Livelihood Mission (DAY –NULM)

 LAUNCHED : GOI - Ministry of Housing and Urban Poverty Alleviation (MoHUPA),

 OBJECTIVE : Improve the livelihood opportunities for the poor in urban areas

 Restructured : Existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and launched the
NULM in 2013. (AGAIN RENAMED AS DAY-NRLM)
 IMPLEMENTED : All District headquarters (irrespective of population)

 and
 All the cities with population of 1 lakh or more.
 FOCUS ON Self Employment Program (SEP)-Providing financial assistance
:
through provision of interest subsidy on loans to support establishment of
Individual & Group Enterprises and Self-Help Groups (SHGs) of urban
poor

 ELIGIBLE : Individual enterprise (SEP-I), Group enterprise (SEP-G) and SHG (SEP-SHGs)

 PRODUCT CODE : 719 -SEP-I, 720-SEP-G and 737-SEP-SHGs

 SUBSIDY : Difference between 7% p.a. and ROI charged by the bank will be provided to Banks
under DAY-NULM. An additional 3% interest subvention will be provided to all Women SHGs
(WSHGs) who repay their loan in time
 Prime Minister’s Employment Generation Programme (PMEGP)

 Administered by : Ministry of MSME .

 Objective : Generate employment opportunities in Rural and

urban areas of the country through setting up of new self-
employment ventures/projects/micro enterprises.
 LOAN : Cost of the project : Rs 50 lacs in respect of manufacturing
activity &
 Rs.20 lacs in respect of Service /
business activity
 2nd PMEGP loan : with subsidy for upgrading the existing units,
which are performing well in terms of Turnover, profit making
and loan repayment.
 2ND LOAN : Manufacturing units : 1 Crore

 Service/Trading Units : Rs.25.00 lakhs

 Subsidy of 15%( 20% for NER and Hilly States).
  WEAVER’S MUDRA SCHEME.

 IMPLEMENTED : Ministry of Textiles, GOI.

 Objective : Provide timely and hassle free assistance to weavers to meet their immediate
requirements, in the form of
 Individual Handloom Weaver/ Handloom entrepreneur/SHG/JLG : Rs. 2 Lacs per borrower

 For Handloom Organization/ Handloom producer companies/ SPV or consortia promoted

by Handloom weavers in mega cluster/ Handloom parks, etc. : Rs. 10,00,000/- .
 Government support by way of:

 Margin Money Assistance - 20% of the PC subject to maximum of Rs.25,000/- per weaver.

 Handloom organization : @20% of loan (margin money @Rs.2.00 lakh for every 100
weaver/worker). Government has restricted this for a max. of Rs.20.00 lakh per borrower
 Interest Subvention – Subsidized loans at concessional ROI @ 6% for a period of 3
years will be available to eligible handloom organizations only. However, this is
subject to interest subvention cap only upto 7% by GOI).

 Credit Guarantee : CGTMSE/CGFMU : Credit guarantee would be covered on loan

amount disbursed upto Rs 10.00 lakhs for a period of 3 years
 Partial Risk Sharing Facility (PRSF)

 Implemented by : SIDBI and supported by World Bank (line with GOI National Mission
on Enhanced Energy Efficiency (NMEEE) which aims to promote Energy efficiency (EE)
projects implemented by ESCOs (Energy Service Companies) in the unit premises of Host
entities, that offer energy efficiency improvement services with the objective of bringing
about demonstrable energy savings.
 The performance risk is borne by the ESCO.

 M/s. SIDBI, provides Credit guarantee of upto 75% of the loans granted by PFI for
energy efficiency projects sanctioned under the scheme in the eligible sectors such as
MSMEs, Municipalities, Building Discoms and Large Industries.
 Credit Linked Capital Subsidy Scheme (CLCSS & SCLCSS):

 OBJECTIVE : CLCS Component of CLCS-TU Scheme aims at facilitating

technology upgradation by providing capital subsidy to MSE units, on
institutional finance (credit) availed by them for modernization
of their P & M involved in MFG process and equipment for
rendering services.
 Quantum of capital subsidy :15% (max up to Rs.15 lakh) of
eligible investment.
 Ceiling limit of loan (TO GET SUBSIDY) under CLCS : Rs. 100.00
Lakh.
 SCLCSS (Special Credit Linked Capital Subsidy Scheme) is
implemented whereby the SC/ST MSEs are provided additional
10% subsidy (over disbursement of 15% subsidy under CLCS)
under National SC/ST Hub (NSSH). SC/ST MSEs of Service Sector
apart from the Manufacturing Sector are also eligible for 25%
subsidy under SCLCSS for procurement of equipments w.e.f.
15.11.2021.
 NSSH Scheme has been made applicable till 31.03.2026.
 Zero Defect Zero Effect:
ZED is an extensive drive of the GOI to promote “Zero Defect Zero Effect “ practices
among MSMEs.
 All MSMEs registered with the UDYAM registration portal will be eligible to participate
in MSME Sustainable (ZED) Certification and avail related benefits/ incentives.
 Bank has adopted the following benefits/ incentives to ZED certified MSMEs under the
revamped ZED scheme introduced on 28.04.2022
 The financial support, incentives, benefits and other provisions contained in the scheme
as per the ZED guidelines published by the MoMSME, will be valid till 31.03.26 (477/22)
 ZED Certification is not mandatory criterion for MSMEs

 Quality Council of India (QCI), an autonomous body setup by Ministry of Commerce &
Industry, GOI has been appointed as an implementing agency for facilitating,
implementation, co-ordination and monitoring of the Scheme
 MSME Sustainable (ZED) Certification can be attained by eligible MSMEs in 3 Levels after
registering and taking the ZED Pledge:

 Level 1: BRONZE Certification Level 2: SILVER Level 3: GOLD

Risk Rating of the ZED Rating of the ROI CONCESSION PROCESSING CHARGES
Unit
 (New/Existing) MSME unit CONCESSION
Internal Rating – Bronze 0.10% 10 %
CNR I to V
(Minimal/LR)
Silver 0.25% 25%
External Rating – Gold 0.50% 50%
AAA/AA/A
Internal Rating – Bronze 0.10% 10%
CNR VI (NR)
Silver 0.20% 20%
External Rating –
BBB Gold 0.30% 30%
Internal Rating – Bronze ---- ---
CNR VII (MR-1)
Silver 0.10% 10%
External Rating –
BBB Gold 0.25% 25%
External Rating – Bronze No concessions permitted
BB/B & below Silver
Gold
 Sanctioned concessional ROI shall not be stipulated below extant
RLLR
 Sanctioned concession in processing charges shall not be
stipulated more than 75% of the extant processing charges
applicable under non-schematic MSME lending
 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
 Canara MSME STAR (Erstwhile Canara MSME CAP scheme) :

 WC -Secured OD (FB & NFB) and/or TL of

 Minimum : Above Rs 10 lacs .

 Canara GST:

 Providing WC requirement of GST registered MSME borrowers (New/Existing

 Minimum : Above Rs 10 lacs .

 New customers with minimum business operation of 6 months and existing customers
shall be brought under the scheme.
 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
 Doctor’s Choice :
Purpose : To address various credit needs of the Registered Medical Practitioners
practising Indian, Unani, Homeopathic, Allopathic as well as their associate business
activities/centres (viz., Clinical/Pathological Laboratory, Physiotherapy centres, Inhouse
Drug/Medical Stores
 Loan : TL and WC

 Max loan : 5 Cr (Sub limit for WC : 20% of the limit subject to a ceiling of Rs.50 lakhs)

 Product Code : WC- 280 TL – SERVICES- 614

 Canara Contractor : For Purchase of brand new equipment/office premises to the existing
and prospective contractors/sub-contractors
 LOAN : WC (FB/NFB) in the form of running limit (Secured OD), FLC/ILC & BG for WC needs
and Term Loan
 Min: Above Rs. 25 Lakhs

 Max: Rs. 10 Cr TERM LOAN (615/23)

 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
 Canara Smart Professional :
Purpose : Credit to MSME professionals for purchase/construction of office premises
/acquisition of machineries /equipments/furniture/ fixtures, including expansion and
modernization of the existing unit
 Loan : TL and WC

Quantum of Loan : Minimum: Above Rs. 10 Lakhs

 Canara Mahila Vikas (Erstwhile MSE Vijeta II scheme):

 Purpose : Credit to meet business related needs including purchase/ construction of business
premises, machinery, equipments, vehicles and WC requirements of women under MS Enterprises
including Retail Trader

 Loan : TL AND/OR WC

 Quantum of Loan : Minimum: Above Rs. 10 Lakhs

 C
 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA

 MSME Vahan :

 Brand new vehicles:  Minimum: No ceiling Maximum: Rs.50.00 Lakhs

 For Used/ second-hand (non-electric): Maximum: Rs. 25.00 Lakhs

 Canara Easy Equipment Finance (CEEF) Scheme:

 Quantum of loan : Rs. 10 lakhs to Rs. 100 crores

 MSME Can BEML: purchase of Earth moving, construction and mining operation equipment from M/S
BEML by way of Term Loan

 LOAN : Term Loan

 Min: Rs. 20 lakhs Max: Rs. 3OO LACS


 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
 Canara MSME Expo:
Purpose : Loan to exporters in MSME sector for purchase of software/hardware for fashion
designing, travelling abroad for business purpose, participation in trade fairs, exhibitions
aboard or International Trade Fair
 Loan : TL

 Max loan : Rs. 50 lakhs

 Scheme is 70870.

 Canara Caravan: Provide credit to the Existing Transport Operators under

MSME segment (for goods and passengers) having 3 years of experience
and which are Individuals /Firms /Companies /Trusts/ Institutions
/Associations, to finance new vehicles (Small, Light, Medium, Heavy
Commercial Vehicles, Passenger vehicle) E.g. Trucks/Tankers/Trailers
/Tippers/Buses/Luxury Busses and passenger vehicles
 LOAN : Term Loan

 QUANTUN : Rs. 25 lakhs to Rs. 5 Crores under the scheme

 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
 Mudra Canara Athithi : Maximum permissible loan quantum of Rs. 10 lakhs

 Canara MSME Gold Loan : Loan to MSME units (Individuals and Proprietorship Firm only)
against Gold Ornaments/ Jewellery held in the name of Individual /Proprietor respectively,
for fund based requirements for general business purpose & augment WC, acquiring
machinery/ equipment/ tools for repairs, renovations etc
 Loan : Overdraft (OD) or Demand Loan (DL)

 QUANTUM : MINIMUM : 0.50 Lac MAX : Rs. 35 lakhs

 Standby credit for capital expenditure of MSMEs:

 To meet unforeseen/contingent requirement for acquiring fixed assets like, generator set, balancing
equipments, replacement of existing machinery items, tools, moulds, jigs etc, to maintain production
and /or to acquire necessary equipments/machinery for modernization of the unit

 LOAN : TL : 25 % of the original value of the existing P & M subject to maximum Rs.25 Lacs
 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
 Standby term loan scheme for Apparel exports in Small and Medium sectors

 Purpose : Loan to Export customers having regular credit limits and having satisfactory track
record with the Bank for at least past 3 years (under sole banking / multiple banking
arrangements / consortium arrangements ) for Apparel Exports
 Loan : Stand-by Term Loan

 QUANTUM : Maximum limit of Rs. 100 lakhs

 Loan scheme for reimbursement of investment made in fixed assets by MSMEs : Capital
expenses incurred towards creation/acquisition of fixed assets (other than L & B) during
the immediately preceding 6 months may be reimbursed.
 LOAN : TL

 QUANTUN : Rs. 50 lakhs for new machinery and

 Maximum : Rs.15 lacs for 2nd hand machinery which is not more than 2 years old from the
original date of purchase
 MSME PRODUCTS AND SCHEMES APPLICABLE PAN INDIA
Loan scheme for providing Risk Capital assistance
 Purpose : Assist the deserving MSMEs in the form of quasi equity on need basis.

 Loan : Term Loan

 QUANTUM : Minimum Rs. 25 lakhs and maximum of Rs. 10 crores

 Scheme Code : 64600

 Laghu Udayami credit card scheme : Loan to meet the WC requirement of Artisans, village
industries, micro and small enterprises including tiny units to all existing small borrowers.
 Eligibility : Borrowers should have satisfactory dealings with us for the last 3 years

 LOAN : WC

 QUANTUN : Rs. 10 lakhs

 Product : 255
 Area Specific Schemes. Valid till 31.3.2024
Financing ARTHIYAS (Commission Agents) in the State of Punjab & Haryana - Chandigarh &
Karnal Circles : SOD – Min : Rs. 10 lacs and Maximum Rs. 200 lacs.

 Financing Automotive Components Manufacturers –Ahmedabad, Chennai, Pune, Karnal and

Ranchi Circles: FB & NFB limits with above Rs 25 lakhs -

 Canara MSME Textiles scheme - Ahmedabad, Bhopal, Chandigarh, Chennai, Jaipur, Karnal,
Madurai, Mumbai, Lucknow, Pune, Kolkata Circles : Rs. 10 lac to Rs. 10 Crs (FB/NFB).)

 MSMEs engaged in both Ceramic and Vitrified Tile Industries - Ahmedabad Circle : > Rs. 10 lakhs

 Financing Marble, Granite, Mineral and Mineral Powder Industries - Jaipur Circle : > Rs. 10 lakhs

 Financing to MSME- Service Enterprises having tie up with M/s Oil India Limited and Oil &
Natural Gas Corporation (ONGC) Limited – Guwahati Circle – MAX 2 CR.

 Canara Iron and Steel Industries Bhubaneswar Circle (Sambalpur Region) : Rs. 10 lakhs to Rs. 50
Crores. (maximum Working Capital component shall not be more than Rs. 25 crores_

 Mukhyamantri Udyam KrantiYojana Bhopal Circle : Projects ranging from Rs. 1 lakh to Rs. 50
lakhs for manufacturing units & Rs. 1 lakh to Rs. 25 lakhs for service units or retail trade(new unit)

 West Bengal Bhabishyat Credit Card Scheme : Maximum PC upto Rs.5.00 lakhs and maximum
loan quantum upto Rs.4.75 lakhs.

 Canara Defence Corridor scheme : Rs.10 lakhs to Rs.25.00 Crores for Service units and Rs.50.00
Crores for Manufacturing units,
 Area Specific Schemes. Valid till 31.3.2024
 Canara MSME INN : Ahmedabad, Agra, Bangalore, Bhopal, Chandigarh, Chennai, Delhi, Jaipur,
Karnal, Kolkata, Lucknow, Madurai, Mangalore, Manipal, Mumbai, Pune,Ranchi and Trivandrum
and Vijayawada Circles

 WC (FB SOD & NFB) and TL with minimum loan quantum above Rs.10 lakhs and maximum upto
Rs.25 Crores. However, maximum quantum of WC limit is Rs.5 Crores.

 Canara MSME LEATHER : Applicable in Agra, Chennai,Delhi, Karnal, Kolkata &Lucknow

 Minimum loan quantum above Rs.10 lakhs and maximum upto Rs.50 Crores.

 However, maximum quantum of Working Capital limit in case of Traders is Rs.10 Crores.

 Canara MSME FOOTWEAR scheme - Applicable in Agra,Chennai & Karnal Circles

 Minimum loan quantum above Rs.10 lakhs and maximum upto Rs.50 Crores.

 However, maximum quantum of Working Capital limit in case of Traders is Rs.10 Crores.

 Canara MSME PHARMA: Ahmedabad, Bhopal, Chandigarh, Chennai, Delhi and Karnal Circles.

 Minimum loan quantum above Rs.10 lakhs and maximum upto Rs.50 Crores.

 However, maximum quantum of Working Capital limit in case of Traders is Rs.10 Crores.


 Area Specific Schemes. Valid till 31.3.2024

 Indira Gandhi Urban Credit Card scheme – Jaipur Circle : Rs. 50,000/- to Urban street
vendors belonging to SC, STs and OBC.

 Canara Iron and Steel Industries – Bhubaneswar Circle (Sambalpur Region) : Rs. 10
lakhs to Rs. 50 Crores. (However, the maximum quantum of the WC shall not be more
than Rs. 25 crores.

 Financing manufacturing units engaged in Metal Fabrication and casting works –

Bhopal (state of Chattisgarh) : Above Rs. 25 lakhs to Rs. 50 Crores

 Mukhyamantri Udyam Kranti Yojana – Bhopal Circle : Projects ranging from Rs. 1
lakh to Rs. 50 lakhs for manufacturing units and Rs.1 lakh to Rs. 25 lakhs for service
units or retail trade businesses for setting up of new units .


 COMPENDIUM ON MSME SULABHS

 Sulabh area : 1000 to 2000 sqft.

 Branch to conduct independent pre-sanction unit inspection / stock / property inspection

for loan amount up to Rs 100 lakh.
 Branch and MSME Sulabh shall conduct joint pre-sanction visit inspection / property
inspection for loan amount of above Rs 100 lakh.




 THE END FOR MSME POLICY OVER

 635/23 : Modifications in Policy Guidelines & Revamping of Online Shishu Mudra Loans Package for
End-to-End digitized Sanction & Disbursement of Shishu Mudra Loans.
 Introduction of Account Aggregator (AA) Functionality for fetching of other Bank
Account Statement in case of New to Bank (NTB) Customers.
 Online Validation of KYC documents & Udyam Registration Certificate (URC).
 Digital Document Execution (e-stamping and e-signing) by the Borrower
 Key Fact Statement (KFS) shall be sent to registered email ID of the Borrower
before execution of the loan documentation

Eligi Having a running active account with our Bank for the last 6 months or other
Bank.
bilit Borrower should have valid URC
y Individual/ Proprietorship are eligible.

In case of NEW Customer, Applicant should not be enjoying any credit facility for
business purpose from any Bank/FIs. (declaration along with the CIC report)
Should not be any cheque return due to insufficient fund in last 6 months
Should not be more than 3 cheque returns in last 6 month due to any reason
other than insufficient fund.
shall not be any overdues in the existing loan accounts
Joint Accounts are not eligible
Purp Business needs
CIC not less than 700
Score CIR under Commercial Segment (without score) shall be obtained and report with adverse
remarks viz., Overdue, NPA, Suit Filed, Written-off accounts shall not be considered.
Assess 4 times of average monthly balance of the last 6 months (in SB / CA) subject to
max Rs. 50,000/-
.

 656/23 : Modification of guidelines under “Weaver’s MUDRA Scheme

Objective Assistance to Handloom sector by way of TL & WC

Quantum Indiv. Handloom Weaver/ Handloom entrep/SHG/JLG : MAX Rs. 2 Lacs per
borrower
Handloom Organization/ Handloom producer companies/ / Handloom parks :
Rs 10 lacs
Tenability WC: 1 year subject to annual renewal
Term Loan: 3 years with repayment holiday of 3 months maximum
Margin 20 %

Margin Individual Handloom Weaver/Weaver Entrepreneur - @20% of loan max Rs

Money 25,000
Assistance Handloom organization : @20% of loan @Rs.2.00 lakh for every 100
weaver/worker).

Govt has restricted this for a max. of Rs.20.00 lakh per borrower entity.
However, since our loan is capped at Rs. 10 lakh, the upper ceiling becomes
invalid
Interest Subsidized loans at concessional ROI of 6% for a period of 3 years will be
Subventio available to eligible handloom organizations only. ( However, this is subject to
n interest subvention cap only upto 7% by the GoI.)
Interest subvention will be provided maximum for 3 years from the date of first
disbursal
Credit CGTMSE/CGFMU : 10 LACS FOR 3 YEARS
Guarante Guarantee cover will be effective from the date of disbursement of
 747/2023 : Canara MSME Textile Scheme – Modifications in existing scheme guidelines

 Project Appraisal/TEV Study for Term loans upto Rs.10 Crores is waived.

 Project Appraisal charges for TL above Rs.10 Crores is flat Rs.1 lakh.
 Maximum loan quantum for Solar projects under the subject scheme is Rs.25 Crores
with relaxation in Security comfort.
 3rd Party Property (other than Properties in the name of close relative) can be accepted.

 748/23 : Modifications in the “Bill Discounting Facility” extended to the following till
31.12.23, in terms of revision in existing tenor and ROI of bill from 240 days to 300 days:
 a) All Circles PAN India for financing Suppliers/Contractors, for supplying
materials/services to M/s Tamil Nadu Generation and Distribution Corporation
(TANGEDCO) and M/s Tamil Nadu Transmission Corporation Ltd (TANTRANSCO),
subsidiary of TNEB Ltd. (Tamil Nadu Electricity Board).
 b) Madurai Circle for financing Suppliers/Contractors, for supplying materials/services to
M/s. Tuticorin Thermal Power Station (TTPS)”
 749/2023 : Implementation of a special guarantee scheme “Tamil
Nadu Credit Guarantee Scheme” for MSEs (Manufacturing Units)
situated in the state of Tamil Nadu by CGTMSE in collaboration with State
Government of Tamil Nadu, in line with CGTMSE Circular 228/2023- 24
dated 22.06.2023
 Under the Scheme, 75% -85% of guarantee coverage for all credit
facilities will be provided by CGTMSE as hither to, and balance guarantee
coverage would be by State Government of Tamil Nadu depending upon
the category and loan amount with a maximum coverage upto 90%
 The claims of the respective MLI will be settled maximum upto 10%
NPA level of crystallized portfolio (portfolio will be crystallized every
FY)
 The Scheme is made effective from September 01, 2022. However, the
ceiling for availing credit guarantee under TNCGS would be Rs.200
lakhs for proposals covered till March 31, 2024
 836/2023 : CANARA START-UP” Scheme – Reiteration of guidelines
Only 7 identified Mid Corporate Branches of the designated Circles i.e. Mumbai, Pune,
Bangalore, Delhi, Ahmedabad, Chennai and Hyderabad

ELIGIBIL  Classified as MSME.

ITY  Udyam Registration Certificate
 A/C risk rated upto Moderate Risk
 equity portion of Start-up shall be fully tied-up
 Should have reached the stage of stable revenue .
 Facility can be extended under sole banking arrangement only.
 Start-ups including Promoters / Directors should not be in default
purpose a. Prototype Creation, Product/Website/App Development
b. Purchase of Raw Materials / Machineries / Equipment
c. Licenses and Certifications
d. Team Hiring /Recruitment of Staffs
e. Legal & Consulting Services
f. Marketing and Sales
g. Purchase / Leasing of Office spaces and / or administrative expenses
FACILITY WC / TL
ROI LOW RISK : 9.25%
NORMAL RISK : 9.50 %
MODERATE RISK : 9.75%
Min & Minimum : Above Rs. 10 Lakhs
MAX Maximum : Rs. 10 Crores
MARGIN Term loan -20% of PC
FB WC – Against Stock & Book Debts: 20%.
 836/2023 : CANARA START-UP” Scheme – Reiteration of guidelines
Only 7 identified Mid Corporate Branches of the designated Circles i.e. Mumbai, Pune,
Bangalore, Delhi, Ahmedabad, Chennai and Hyderabad

Repayme Working Capital: 1 year.

nt TL: 10 year including maximum moratorium 3 Year
Security TL : Hypothecation / Mortgage of Assets financed by the
WC: Hypothecation of Stocks & Receivables
Collateral: For exposure up to Rs.2 Cr-s Low Risk, Reputed Private
Equity/ Venture Capital investors /
Collateral OR CGTMSE
For exposure above Rs.2.00 Crores :
Low Risk - 25%,
Normal Risk- 50% &
Moderate Risk- 75% by way of Land/L&B/Approved securities.
 50% shall be by way of Residential/ Commercial property/ Approved
Securities
 In case of vacant landed properties, only 85% shall be reckoned for
calculation of collateral comfort and can be accepted as collateral
security upto a maximum of 25% of the collateral stipulated,
provided it has clear demarcation and boundaries with approach
roads and is duly allotted by any Government / Statutory body
Credit Ceiling on Guarantee Cover: Maximum guarantee cover per borrower shall not exceed Rs.10 crore.
Guarantee Extent of Guarantee Coverage:
Scheme for The Trust shall provide guarantee cover, subject to a maximum of Rs.10
Start-ups
(CGSS) crore per borrower, as per details given below:
Guidelines i.80% of the amount in default if the original loan sanction amount is
upto Rs.3 crore.
ii. 75% of the amount in default if the original loan is above Rs. 3 cr and
 905/23 : Extending Special benefits to MSEs located in identified Credit Deficient Districts
(ICDD) by CGTMSE.
 As per the above Circular, MSE borrowers situated in ICDDs would get

 10% reduction in standard rate of guarantee fee in addition to other special benefits
related to social category and ZeD certification.
 Further, the extent of guarantee coverage is increased by 5% over and above the
applicable guarantee coverage (i.e. for guarantee coverage of 75%, the coverage would
be 80%, for 85%, it would be 90%).
 ICDDs would be as per the list issued by RBI from time to time. Presently, 184 districts
have been identified as credit deficient
 252/24 : Area Specific Schemes under MSME for FY 2024-25

 Continuation of 11 Area specific schemes for FY 2024-25 as against existing 16.

 Revision in applicable Circles with respect to ‘Canara MSME Pharma’ scheme.

Discontinuation of Area specific schemes ‘Canara MSME Leather’, ‘Canara MSME
Footwear’ and ‘Scheme for MSME- Service Enterprises having tie up with Oil India and
ONGC Limited’ with effect from 01.04.2024

 47/24 : Introduction of the “Goa Credit Guarantee Scheme (GCGS)/ Mukhyamantri – Saral
Udyog Sahayya Yojana (MSUSY)”,
 A Special Credit Guarantee Scheme for MSEs situated in the state of Goa, by CGTMSE and
Govt. of Goa, wherein 75% - 85% of the guarantee coverage for credit facilities will be
provided by CGTMSE as hitherto depending upon the category of the borrower and
balance 20% - 10% coverage shall be provided by Government of Goa, taking the overall
guarantee coverage to 95%


 Extent of coverage :
 101/24 : Special provision for Informal Micro Enterprises (IMEs) under Credit Guarantee
Scheme of CGTMSE.
 In order to facilitate unsecured affordable credit flow to Informal Micro Enterprises for
their composite requirement, CGTMSE vide its circular 238/2023-24/letter ref:
CGTMSE/229 dated 14.02.2024 has introduced “Special Provision for Informal Micro
Enterprises (IME) under Credit Guarantee Scheme”.
  The guarantee coverage will be available for credit facility is upto Rs.20 lakhs.

  The extent of guarantee coverage will be 85%.

  WEF : after 14.02.2024.

 The standard rate of annual guarantee fee for Banks are as under


Credit facility Standard rate of annual guarantee fee
Upto Rs.10 lakhs 0.37%
Above Rs.10 lakhs & upto Rs.20 lac 0.45%
 121/24 : Trade Receivables Discounting System (TReDS) – Modification in Guideline

 Our Bank is on-boarded as “Financing Bank” for discounting Trade Receivables of

 RBI approved for 3 – TReDS : ., M/S RXIL (M/[Link] Exchange of India Ltd), M/S
[Link] Limited and M/S Mynd Solutions.
 Permitted modifications in the following guidelines of TReDS as under:
Buyer-wise Limit: Maximum limit for approval of buyers on each of the TReDS platforms

Details Limit
Total outstanding on the platform at any point of time RXIL - Rs. 2000 Cr.
A TReDS - Rs.4000 Cr.
Mynd Solutions –Rs. 4000 Cr
Govt. Undertaking (Unrated) Rs. 150 Crores
PSUs (rated A and above) Rs. 150 Crores
Non-PSUs (rated AAA) Rs. 150 Crores
Non-PSUs (rated AA) Rs. 125 Crores
Non-PSUs (rated A & A+) Rs. 75 Crores
PSUs/Non-PSUs (rated A-) Rs.50 Crores
PSUs/Non-PSUs (rated BBB) – Constituent buyers only Rs.25 Crores
 121/24 : In case of government organizations, DOP for approval of buyers is vested with
GM-HO-CAC and above authorities
 Circle Head CAC is empowered to permit adhoc limit (under exigencies) upto a maximum
of 25% of the existing approved limit sanctioned for discounting bills of a buyer on TReDS
platforms (Irrespective of overall exposure)
 Service charges (@0.25% per annum plus applicable taxes)

 However, applicable bidding rate is reduced by 25 bps wherever Service

Charges/Transaction Charges (i.e. 0.25% per annum plus applicable taxes) on successful
bids is waived by all the 3 Platforms

 498/24 : Introduction of new functionality in CBS – 2nd Level Authorization for closure of
MSME loan accounts within 6 months, from the date of opening.
 Second Level Authorization is permitted by RO Official/s having CBS template 86”.
 559/24 : Updated RBI Master Direction - Lending to Micro, Small & Medium Enterprises
(MSME) Sector.
 Composite loan : A composite loan limit of Rs.1 Crore can be sanctioned to enable the
MSE entrepreneurs to avail of their WC and TL requirement through Single Window.
 Timelines for Credit Decisions for loans upto Rs.25 lakhs to units in the MSE borrowers
shall not be more than 14 working days.
 Working Group on Rehabilitation of Sick SMEs (Chairman: Dr. K.C. Chakrabarty) : Lending
in case of all advances upto Rs.2 crores may be done on the basis of scoring model
 590/24 : Bill Discounting Scheme(BDS) to finance Contractors against their bills pending
for payment with Government of Kerala (GOK)’, supported by Electronic Promissory Note
issued by GOK– Modification in Guidelines
 Tenor of the loan under the subject area specific scheme is increased to maximum of ‘6
months’ from the date of discount.
  50% Concession in applicable PC for each transaction with a maximum of Rs.7500/-

  Reduction in ROI of internally moderate risk rated accounts is permitted

 642/24 : “Canara e-GST” through Digital Lending Platform (DLP), for financing of fund
based WC limit upto Rs. 10 Lakhs to GST registered MSMEs based on GST Turnover.

LOAN MINIMUM 1 lac & MAX : 10 lACS

 Note: Loan Amount shall be calculated in multiple of
Rs.10,000/- of assessed loan amount at lower side

Purpose  FBWC to GST Registered MSMEs through digital mode.

 Only for income generation Business activities.
 WC Upto Rs. 10 Lakh based on GST T/O through digital mode.
 Scheme is available for Existing to Bank (ETB) Customers.
 Journey for New to Bank Customers shall be implemented at a
later stage
Target MSM Enterprises.: Existing to Bank (ETB)- Existing CA holders, for a
minimum period of 12 months categorized as MSME Enterprises having
valid URC & GST.
Not having any active Business Loans from any other Bank/FIs.
Existing MSME TL Borrower of our bank without having WC limit
and total MSME exposure (Existing + proposed) should not be more
than Rs. 10 Lakhs.
Satisfactory repayment record in existing TL account/s (No overdue
 642/24 : “Canara e-GST” through Digital Lending Platform (DLP), for financing of fund
based WC limit upto Rs. 10 Lakhs to GST registered MSMEs based on GST Turnover.

Eligibilit  Individual, Proprietorship Firm.

y  URC & PAN and same will be validated digitally.
 Promoters should have Aadhar, PAN & e-mail ID and it should be updated in CBS.
 Age between 21 to 65 Years.
 Minimum business vintage and active CA for 12 Months.
 GST Certificate is mandatory & minimum 12 Months GST Returns should be
available. Latest GST Return should not be older than 1 Month (in case of monthly
filing) & 1 quarter (in case of quarterly filing) from the preceding month of loan
application.
 Applicant should not have active business loans with any Bank/FIs and same shall
be checked digitally through Credit Information Report (CIR) & CBS.
 Existing MSME TL Borrowers with our Bank not having WC limit shall be eligible.
PAN based exposure of entity / Promoter under Canara e-GST shall not exceed
maximum limit stipulated under the scheme i.e. Rs.10 Lakhs.
 Existing loan accounts with our Bank should not have overdue/NPA status at the
time of applying WC.
 642/24 : “Canara e-GST” through Digital Lending Platform (DLP), for financing of fund
based WC limit upto Rs. 10 Lakhs to GST registered MSMEs based on GST Turnover.

Eligibilit  Customers having credit history of SMA2/NPA a/cs in last 12 months not eligible
y  Number of cheques returned due to “Insufficient Fund” reason or ECS/NACH bounce
in the operative account/s in the last 12 months should not be more than 4 times.
 Accounts rated upto Moderate Risk only.
 Should not appear in the RBI defaulter lists, Central Fraud Registry (CFR), ECGC
Caution List
Margin Stocks – 25% & Book Debts – 30%
Tenability 1 year
ROI WC limit up to Rs. 2.00 Lakhs : RLLR + 1.05
WC Limit above Rs. 2.00 Lakhs to Rs. 10 Lakhs
Low Risk : RLLR + 1.40%
Normal Risk : RLLR + 2.25%
Moderate Risk : RLLR + 2.75%
Collateral Nil – to be covered under CGFMU
 642/24 : “Canara e-GST” through Digital Lending Platform (DLP), for financing of fund
based WC limit upto Rs. 10 Lakhs to GST registered MSMEs based on GST Turnover.

 &
Stock Quarterly basis.
Book Debt
Statement
Others Sanction shall be valid for a maximum period of 15 days for digital execution of
Loan documents and to avail the credit
Cooling off Period - 3 days from the Disbursement/ availment of sanctioned
WC Limit
GENERAL CONDITIONS
Application at branch portal is to be approved or recommend for rejection to next
higher authority within 3 working days.
Otherwise, application will automatically move to RO dashboard and shown as
pending application, If RO does not dispose the application in next 3 working
days, the application moves to CO dashboard for further action.
If the respective CO does not act upon within 3 working days, then on 10th
day, pending application will be shown in MSME Wing, HO dashboard as
pending application

IF Branch recommends rejection : Respective RO to take suitable decision within 2 working days
 686/24 : Implementation of the Scheme for Payment of Annual Guarantee Fee (AGF) in
Credit Guarantee Fee of CGTMSE by Govt of Rajasthan under Dr. Bhimrao Ambedkar
Rajasthan Dalit, Adivasi, Udyam Protsahan Yojna (BRUPY), 2022 for Micro & Small
Enterprises.
  CGTMSE has collaborated with Government of Rajasthan for payment of Annual
Guarantee Fee in Credit Guarantee Scheme under the Scheme titled “Dr. Bhimrao
Ambedkar Rajasthan Dalit, Adivasi, Udyam Protsahan Yojna, 2022 (BRUPY)” announced by
Government of Rajasthan.
  Under the scheme, guarantee coverage would be provided as per the ceiling permitted
under CGTMSE scheme and the cost of annual guarantee fee for the loans covered by
CGTMSE under BRUPY, shall be borne by the State Government.
 The cap of Rs.200 lakhs is the maximum guarantee coverage limit per borrower based on
the outstanding credit facilities.
 The Scheme is made effective from 8th Sep 22 and will continue till 31.3.27

 Extent of Guarantee Coverage: SC/ST entrepreneurs : 200 Lacs (85%)

 All proposals for sanction of guarantee approvals for credit facilities above Rs. 50 lakhs
upto Rs. 200 lakhs will have to be internally rated by the MLI and should be of
investment grade
 686/24 :

 ELIGIBILITY : New or existing Micro and Small Enterprises to which credit facility has been
provided by the lending institution with or without any collateral security and/ or third-
party guarantees
 SC/ST promoted Micro and small enterprises / units in Rajasthan state who are original
native of the State of Rajasthan
 Mminimum age of 18 years.
 Should not be working with or engaged any Central / State Government run
Institutions / Services/employment
 SC/ST borrowers should have 51% or more share in the partnership / LLP / Cooperative
Societies/ Pvt. Ltd. Companies etc
 Should not have been a defaulter
 should not have been declared as bankrupt and /or mentally unfit

 Discount in premium :

 Women entrepreneurs/ SC/ST/ Person with disability (PwD) Borrowers would be given
the discount of 10%. Guarantee to the MSEs promoted by Agniveers shall also carry 10%
relaxation in Annual Guarantee Fee.
 686/24 :

 In case of PwD, the MLIs would require to obtain Disability Certificate(s) with regard to the
promoter(s) issued by the competent authority while applying for guarantee coverage.
 MSEs situated in Aspirational District would be given discount of 10%.
 ZED Certified MSEs would be given discount of 10%.
 d. An MSE falling in all the above three categories viz. Social, Geographic, MSE Status
shall be eligible for maximum discount of 30%

 The Extent of Guarantee Coverage

Category UPTO Rs 200 lacs
SC/ST 85%

Tenure of guarantee :

Term loan : Agreed tenure

Working capital : 5 years or block of a 5 years from Guarantee start date or loan termination
date, whichever is earlier or such period as may be specified by the Trust.

 736/2024 : Renewal of (MoU) between. (National Small Industries Corporation Ltd.) and
Canara Bank under NSIC-Bank Credit Facilitation Scheme, for a period of 3 years from
21.10.2024.
 M/s. NSIC Ltd established in the year of 1955

 M/s. NSIC Ltd operates through countrywide network of offices and Technical Centers
and provides integrated support services to MSMEs under marketing, credit, technology
and other support services such as raw material assistance, exhibition, buyer-seller
meets, export facilitation, training/skill upgradation and other support services.
 M/s. NSIC Ltd also extends credit facilitation service to MSMEs under its ‘NSIC-Bank
Credit facilitation scheme’ through linkage with Banks and arranges for credit support from
the Banks without any cost to MSMEs
 Upon sanction of the credit facility sourced from NSIC, the

 Bank shall pay to NSIC 50% of the Processing charges/Upfront fee collected from
applicants for sanction of Credit facility within 30 days

 MSME – 11 AREA SPECIFIC
SCHEMES
B V RAVI KUMAR NOTES
Updated till 31.10.24
HO CIR : 252/2024
Continuation of 11 Area specific schemes for FY
2024-25 as against existing 16 Area specific
schemes

Discontinuation of Area specific schemes ‘

Canara MSME Leather’,
‘Canara MSME
Footwear’ and
‘Scheme for MSME- Service Enterprises having tie up with Oil
India and
ONGC Limited’
 252/2024: CANARA MSME TEXTILE SCHEME
Purpose To provide credit for WC/TL (FB and NF) of MSME to borrowers engaged in
manufacturing in Textile Sector
Target Units engaged in
Manufacturing of Yarn, Man Made Fabrics, Jari used in fabric, Sarees, Dress
materials, Garments, Apparels etc, Processing of Fabric
Installation with maintenance of Solar project for captive consumption by units
otherwise eligible
Eligibility a. Individuals/ Proprietary Concern/Partnership Firms /Company (excluding
NBFC).
b. The Scheme applicable for accs risk rated upto Moderate Risk
In eligible a. Second Hand Machineries.
b. Service Sector shall not be considered
Facility WC / Term Loan (Both Fund Based and Non-Fund Based)
Quantum Above Rs.10 Lakhs
(For Solar Projects : Maximum loan amount shall not exceed Rs.25 Cr within the
overall limit.
Margin WC/Term Loan : 25%
CGTMSE CGTMSE Coverage Not Applicable
Collateral Mortgage of L & B and/or Approved securities to the extent of atleast 75% of the
Security total limit
(Vacant land shall not be accepted as security)
OTHERS Validity & scheme Code Validity: 31.03.2024 : Scheme Code: 93500
Submission of Stock Statement/Book Debts & Inspection of units : Quarterly
50% of the applicable Upfront fee/ Processing charges.
50% of the applicable Commission on NFB limits
 : “Automotive Components Manufacturers” Scheme
Purpose Area specific scheme for financing Automotive Components Manufacturer

Target Tier I and Tier II Suppliers of OEM’s (Original Equipment Manufacturers).

Ahmedabad, Chandigarh, Chennai, Karnal, Pune and Ranchi Circles
Eligibility Individuals/Proprietary firms/ Partnership firms (other than partnership firms where
HUF is a partner)/LLPs/ Companies (excluding NBFC).
The Scheme shall be applicable for accounts which are risk rated up to Moderate
Risk/BB
Firm/Company should already engaged in this line of activity for a minimum period
of 1 year
Facility TL/WC/NFB
Quantum Above Rs.25 Lakhs
Margin As per extant guidelines
CGTMSE CGTMSE coverage as per extant CGTMSE guidelines
Collateral Minimum 75% of the exposure
Security

OTHERS PC : 50% concession from the applicable charges.

Additional interest of 0.25% to be charged in respect of all externally unrated
exposures above Rs.25.00 Crores
 “MSMEs engaged in both Ceramic and Vitrified Tile Industries in Ahmedabad Circle

Purpose To provide credit for business requirement of MSME borrowers engaged in

Ceramic and Vitrified Tile business (Manufacturing) for Term loan / working
capital requirements
Target Micro Small and Medium Enterprises engaged in Ceramic and Vitrified tile Industry
(Manufacturing) such as Ceramic Tiles, Sanitary Wares and other related allied
activities
Eligibility Unit’s engaged in the activity related to Ceramic industry (Manufacturing).
Availability of mortgage of Land and Building for Individuals/Partnership firm (other
than partnership firms where HUF is a partner)/ company (excluding NBFC) /
proprietary firms.
The Scheme shall be applicable for accounts of which risk rating is up to Moderate
Risk only
Facility TL/WC/NFB
Quantum Above Rs. 10 Lakhs
Margin Term Loan: 25%.(In exceptional cases DGM-CO-CAC ca relax margin is permitted up
to 20%)
Working Capital: Stock : 25% , Book Debts : 30%
Non fund based limits ( LC/BG/ Trade Credit): 20 %
Repayment Term Loan: 5 to 7 Years including moratorium. Working Capital: 1 year
Collateral Minimum security comfort by way of Prime and Collateral (L & B and Approved
Security securities, [Link] Policies, NSCs, KVPs, PSU Bonds except share & debenture
standing in the name of borrower only) should be more than 50% of the loan/ limit
OTHERS
 Canara Iron and Steel Industries” Sambalpur region of Bhubaneswar Circle
Purpose For financing existing/new manufacturing/trading units engaged
in manufacturing and trading of sponge iron and steel in
Sambalpur region of Bhubaneswar Circle.
Target Existing and New manufacturing/trading units engaged in manufacturing
and trading of sponge iron and steel in Sambalpur region of Bhubaneswar
Circle
Eligibility Individuals /Proprietary Concern/Partnership Firms (other than partnership
Firms where HUF is a Partner) /Company/LLP (excluding NBFC).
b) The Scheme shall be Applicable for accounts risk rated up to Moderate
Risk
Facility A. Working Capital B. Term Loan (Fund-Based facilities only)
Quantum Minimum: above Rs. 10 lakhs
Maximum: Rs. 25 Crores (Working Capital)
Rs. 50 crores (Term Loans)
Margin Term Loan: 80%
Margin on stocks – 25%; Margin on book debts – 40%
Repayme upto 7 years inclusive of repayment holiday,
nt
Collateral Manufacturing units : >=50% of the total limit
Security Trading units.: >=100% of the total limit

OTHERS 50% of the applicable upfront fee/processing Charges

50% of the applicable Project Appraisal Charges
 Area Specific Scheme for financing Arthiyas (Commission Agents) )
Purpose To meet the financial requirement of Arthiyas (Commission
Agents)
Target Chandigarh, Karnal and Jaipur Circles Canara Bank: 92900 Arthiyas
Eligibility 1. Commission agents holding Mandi Board License for minimum 1 year
2. Risk rating upto Moderate Risk
Facility Secured OD
Quantum Minimum: Above Rs.10 Lakhs
Maximum: Rs.200 Lakhs per Party
Margin 30%
Repayme One year
nt
Collateral shall not be less than 150%
OTHERS Commission agents holding Mandi Board License for the last 3 years.
Max 12 times of last 3 year’s average commission declared in Balance sheet subject
to a maximum of 70% of receivables due from farmers not older than 180 days.

Commission agents holding Mandi Board License for less than 3 years.
Maximum of 12 times of commission declared in latest Balance sheet subject to a
maximum of 70% of receivables due from farmers not older than 180 days

Outstanding receivable (not older than 180 days) on an individual farmer is

restricted to a maximum of 10% of the OD BD limit sanctioned to the party
{Applicable to (a) and (b) above
ROI Low Risk : RLLR, Normal Risk : RLLR + 0.10% Moderate Risk : RLLR + 0.75%
 Bill Discounting Scheme to finance Contractor

Purpose To pay off the bills raised by the PWD contractors/ Contractors/
Suppliers/ Accredited Agencies of all other Departments/
Institutions/ Local State Government Department on Govt. of
Kerala (GOK)
Target

Eligibility Scheme available to the existing as well as new creditworthy clients under
MSME category with KYC compliance and due diligence, who are in the
approved list of contractors of GOK with satisfactory dealings, subject to
ensuring that they are not enjoying any working capital limit with other
Banks/FIs.
Facility Working Capital – Bill Discounting For the Branches coming under
Trivandrum Circle
Quantum No higher/lower ceiling
Margin Nil
Repayme Maximum of 5 Months from the date of discount
nt
Collateral Existing clients with credit limits: Securities available to the existing
Security exposure to be extended to the subject limits also
For the new clients: Collateral securities may be explored depending
upon the type of customers and need for the proposa
OTHERS
 Financing Processors/Traders engaged in Marble & Granite
Industries)
Purpose To provide credit for WC/ TL requirement (Fund Based and Non-
Fund Based) of MSME (as defined under MSMED Act 2006)
borrowers engaged in processing and trading Marble, Granite,
Mineral & Mineral Powder Units
Target All MSME units (As defined under MSMED Act 2006) engaged in
Processing and Trading of Marble, Granites, Mineral & Mineral Powder
Units
Eligibility Individuals/ Proprietary Concern/Partnership Firms (other than
Partnership Firms where HUF is a Partner) /Company (excluding NBFC).
Scheme shall be applicable for accounts risk rated upto Grade
V/Moderate Risk/BB
Facility WC/TL/NFB
Quantum Above Rs.10 lakhs
Margin
Repayme
nt
Collateral 75% of the total limit
Security
OTHERS 50% of the applicable upfront fee/ processing charges.
50% of the applicable Project Appraisal charges
 “Mukhyamantri Udyam Kranti Yojana”- Bhopal Circle
Purpose Provide financial assistance to educated youth of the state for
setting up of new unit (manufacturing, service or retail trade)
Target Projects ranging from
Manufacturing units : Rs. 1 lakh to Rs. 50 lakhs for and
Service units or retail trade Rs. 1 lakh to Rs. 25 lakhs for
Applicable for beneficiaries in the state of Madhya Pradesh only.
Minimum passed 12th class
Ages of 18 to 40 years having annual family income of upto Rs. 12 lakhs.
Applicant should not be a defaulter of any Bank/FI and also should not be
a beneficiary of any other self-employment scheme of the State or Central
Government at present.
Facility Working Capital and Term Loan
Quantum For manufacturing units: Min: Rs. 1 lakh Max: upto Rs. 50 lakhs
For service units : Min: Rs. 1 lakh Max: upto Rs. 25 lakh
Margin AS PER GUIDELINES
Repayme OD/OCC- 12 months with annual renewal
nt Term Loan – 7 years inclusive of moratorium
Collateral NIL : CGTMSE coverage
OTHERS Training : 12 days EDP
Take decision on the proposals received within a maximum of 6 weeks
 “WEST BENGAL BHABISHYAT CREDIT CARD SCHEME(WBBCCS)”
WEF 1.4.23 will remain in force up to 5 year
Project cost Upto Rs 5 lacs
LOAN Maximum up to Rs.4.75 lakhs (TL and WC Limit put together)
REPAY OD/OCC- 12 months with annual renewal
Term Loan – 7 years inclusive of moratorium upto maximum of 6
months
MARGIN – 10% or Rs.25,000/- whichever is lower
State Government shall provide subsidy in the form of Margin Money
contribution @10% of the project cost with the ceiling of Rs. 25,000/-.
CGTMSE 100%
GUARANTEE Maximum Coverage of CGTMSE : 85%
Maximum Coverage of the State Government : 15%
Claims of the respective MLI will be settled maximum upto 15% NPA
level of crystallized portfolio (portfolio will be crystallized every FY).
However, claims received in respect of NPA level above 15% will be
settled under the normal Credit Guarantee Scheme of CGTMSE
GENERAL Applicable to entire State of West Bengal – both Urban & Rural areas
and targeted to provide financial assistance to 2 Lakhs Youth per year
Annual family income criteria shall not be applicable
Indian National and residing in the state of West Bengal for past 10 years at
least.
Age: 18 to 45 years
 “CANARA MSME PHARMA” – PAN INDIA SCHEME
Target Engaged/proposed to engage in Manufacturing of Pharmaceuticals, API (Active Pharmaceutical
Ingredients) & API Intermediate/Trading
Footwear/Footwear products and of Pharmaceuticals
other related(Wholesale/Retail/C&F
activities Agents)
Target
ELIGIBILITY 
Individuals/Proprietary/Partnership/Company
Individuals/Proprietary/Partnership/Company /Traders//LLPs,
LLPs Trust/Society.
Udyam Registration Certificate
Udyam Registration Certificate
CIBIL MSME Rank (CMR) guidelines

 A/C risk rated
Borrowers upto or
with SMA1 Moderate Risk
SMA2 during /BB
last 12 months in respect of liabilities with our/Other
 Borrowers
Banks/FIs with
as per SMA1
credit or SMA2
bureau during
report are last 12 months in respect of liabilities with
not eligible.
our/Other
 SwitchoverBanks/FIs
of existing as per
a/cs credit
to said bureau
scheme report
shall not beare not eligible.
permitted.
Switchover
WC and TL of existing a/cs to said scheme shall not be permitted.
FACILITY
FACILITY WC AND
Minimum TL Rs. 10 Lakhs
: Above
Min & MAX
Min & MAX Maximum
Minimum: :Rs. 50 Crores
Above (ForLakhs
Rs. 10 WC limit: Maximum quantum is Rs.10 Cr)

ROI Maximum
ROI ranges:from
Rs. 50 Crores
RLLR (9.25%)(For
toWC limit: Maximum
RLLR+0.50% =9.75%quantum
dependingis Rs.10
on risk Cr)
rating of
the borrower
MARGIN Term loan -20% of PC
MARGIN Term loan -20%
Domestic FundofBased
PC WC – Against Stock: 25%, Book Debts: 25%.
FB
Export limits: Pre ShipmentDebts:
WC – Against Stock & Book : 10%,25%.
Post Shipment: Nil
Export limits: Pre Shipment : 10%, Post Shipment: Nil
NFB
NFB ––15%
15%
Repayment
Repayment Working Capital:
Working Capital: 1 year.
1 year.
TermLoan:
Term Loan:
1010 years
years including
including maximum
maximum Moratorium
Moratorium of 2 Years: 2 Years
Security In case of of
In case Ring
RingFenced A/C::PRIME
Fenced A/C PRIME SECURITY
SECURITY
Collateral: Low Risk - 25%, Normal - 50% & Moderate
Collateral: Low Risk - 25%, Normal Risk- 50% & Moderate - 75% by way Risk-
of 75% by
Land/L&B/Approved securities.
way of Land/L&B/Approved securities.
In case where account is not Ring Fenced
In case where
Collateral: Low Risk 50%, account
Normalis not
Risk Ring
75%Fenced: PRIMERisk
& Moderate SECURITY
100% by way of
Collateral: Low Risk
Land/L&B/Approved 50%, Normal Risk 75% & Moderate Risk 100% by way of
securities.
Resid/Commercial/Approved
For Traders: Min 100% Collateralsecurities
in the form of Land, L&B, and Approved Securities, Out of
which minimum of 50% shall be by way of Residential/Commercial property/Approved
Securities.
For Traders: Minimum 100% Collateral in the form of Land, L&B, and Approved
Note:
Securities shall be obtained. Out of which minimum of 50% shall be by way of
i. Out of the total collateral comfort as mentioned above, minimum of 50% shall be by way of
Residential/Commercial
Residential/Commercial property/Approved Securities.
ii. ii. In case of vacant landed properties, only 85% shall be reckoned for calculation of
 : “CANARA MSME INN”
Target Hotel Industries
ELIGIBILITY Individuals/Proprietary/Partnership/Company /LLPs, Trust/Society.
Udyam Registration Certificate
A/C risk rated upto Moderate Risk /BB
Borrowers with SMA1 or SMA2 during last 12 months in respect of liabilities with
our/Other Banks/FIs as per credit bureau report are not eligible.
Switchover of existing a/cs to said scheme shall not be permitted.
FACILITY WC AND TL
Min & MAX Minimum : Above Rs. 10 Lakhs
Maximum : Rs. 25 Crores (For WC limit: Maximum quantum is Rs.5 Cr)
MARGIN Term loan -20% of PC
Secured OD – Nil
NFB – 15%
Repayment Working Capital: 1 year.
Term Loan: 10 years including maximum Moratorium : 2 Years
Security In case of Term Loan (Stand alone) : PRIME SECURITY
Collateral: Minim 25% by way of Resid/Commercial/Approved securities.
Primary & Collateral : (L&B and/or Approved securities) : 100%
In case of WC Limit(Standalone) SOD Limit : Primary Security
Collateral : Minimum of 100% L & B or approved securities), of which
50% of collateral security shall be way of Residential/Commercial/Appr
In case of TL & WC Limit(both) : Primary Security
Collateral : IF LOAN : 10 Cr
100% Primary and Collateral put together P + C : 10 Cr

Out of which Minimum of 25% should be Collateral Security. : 2.5 Cr

Out of which minimum 50% of collateral security (RES/COMM/APP):1.25 Cr
 Terminal Questions
 Which among the following is NOT correct
with regard to CANARA e-GST scheme.

 a. Age between 21 to 65 Years.

 b. Minimum business vintage and active CA for 12
Months
 c. Applicant should not have active business loans with
any Bank/FIs
 d. Scheme is available for Existing to
Bank (ETB) Customers & New to Bank
Customers

Answer is d
 Terminal Questions
 Maximum amount can be sanctioned under
Canara E-GST scheme________

 [Link] 5 lakhs
 [Link] 15 lakhs
 [Link] 20 lakhs
 [Link] 10 lakhs

Answer is D
 Terminal Questions
 Which among the following is/are
recommendation/s of the Prime Minister's Task
Force on MSMEs?

 a. 60% of the total advances to MS Enterprises

sector as on preceding March 31st should go to
Micro Enterprises
 b. Achieve a 10% year-on-year growth in credit to
Micro and Small Enterprises
 c. Achieve 20% annual growth in the number of
Micro Enterprise accounts
 d. All above

Answer is A
 Terminal Questions
 Maximum guarantee coverage by CGTMSE
for including Retail and Wholesale trade is
________

 [Link] 750 lakhs

 [Link] 75 lakhs
 [Link] 200 lakhs
 [Link] 500 lakhs

Answer is D
 Terminal Questions
 In case of term loan, Annual Guarantee Fee
for CGTMSE is calculated on outstanding
amount as on _______ against each guarantee
A/C

 a.30th September
 b.31st December
 c.31st March
 d.30th June

Answer is B
 Terminal Questions
 Obtention of mandatory CGTMSE Cover can be waived by
RSA for MSME loans above Rs.10 lakhs upto Rs.500 lakhs,
when the MSME new borrowers who provides primary
security or primary and collateral security put together in
the form of land and building/ approved securities with a
minimum value of ………% of the sanctioned limit, in
addition to the security of assets created out of Bank’s
finance and out of which Vacant land can be accepted as collateral
security to the maximum extent of 25%.

 a.100% & 25 %
 b.75% & 25 %
 c.125 % & 25 %
 d.100% & 50 %

Answer is c
 Terminal Questions
 CGFMU guarantees loans to eligible……..
units under PMMY upto Rs ……. Lac
without obtaining any collateral or 3RD party
guarantee.

 [Link] and small units, Rs 5 lakhs

 [Link] and small units, Rs 10 lakhs
 [Link] units, Rs 5 lakhs
 [Link] units, Rs 10 lakhs

Answer is d
 Terminal Questions
MICRO ENERPROSES TAGET IS ……. % of
ANBC or CEOBE (higher)

 a. 7.5 %
 b. 8 %
 c. 10 %
 d. 12%

Answer is A
 Terminal Questions
Bank may, on the basis of good track
record and financial position of the MSE
units, increase the limit to dispense with
the collateral requirement for loans up to
Rs…..lakh based on merits.

 a. 25 lacs
 b. 10 lacs
 c. 100 lacs
 d. 200 lacs

Answer is a
 Terminal Questions
 SHISHU category loans, i.e.,upto Rs.50,000
are eligible for CGFMU guarantee cover if
ROI charged should not exceed ………% p.a
 a. 10 %
 b. 15 %
 C. 7 %
 d. 12%

Answer is D
 Terminal Questions
 As per CGTMSE guidelines, the balance …….
% of the guaranteed amount will be paid
on conclusion of recovery proceedings
by the lending institution or after ………. of
obtention of decree of recovery, whichever
is earlier

 a. 75% & 1 year

 b. 25% & 3 years
 c. 25% & 1 year
 d. 75% & 30 days

Answer is b
 Terminal Questions
RBI has issued guidelines on framework of
revival and rehabilitation of MSME units
having loan limits upto Rs…………….

 a. 10 crores
 b. 100 crores
 c. 25 lacs
 d. 25 crores

Answer is D
 Terminal Questions
MSME CIBIL RANK is applicable when
the exposure of borrower is above ……..
lakhs and upto Rs…….Cr

 a. 1 LAC & 1 Cr
 b. 10 LAC & 1 Cr
 c. 1O LAC & 10 Cr
 d. 5 LAC & 5 Cr

Answer is C
 Terminal Questions
CIRM Hybrid Model : Applicable for the
Manufacturing, Trading and Services (wherever
balance sheet is available) for New Borrower
(except Greenfield projects) & Existing
borrower having exposure above ..... Cr to ……. Cr
(irrespective of turnover
 a. 2 Cr to 7.5 Cr
 b. 1 Cr & 5 Cr
 c. 2 Cr & 5 Cr
 d. 1 Cr & 10 Cr

Answer is A
 Terminal Questions
STAND UP INDIA Scheme was launched with a view to
promote entrepreneurship among ……………
a. SC entrepreneurs.
 b. ST entrepreneurs.
 c. Women entrepreneurs.
 d. All the above

Answer is D
 Terminal Questions
 Under (SCLCSS )Special credit linked capital subsidy
scheme of SC/ST MSEs are provided subsidy of …….%
(with the overall ceiling of Rs. …… lakhs on the subsidy

 a. 15% & 15 lacs

 b. 25% & 25 lacs
 c. 25% & 15 lacs
 d. 15% & 25 lacs

Answer is B
 Terminal Questions
In cases of limits are above Rs…….
crore, a copy of the passports of the
Promoters/ Promoter Directors and
Guarantors to be mandatorily obtained

 a. 1 Crore
 b. 10 crore
 c. 3 CRORE
 d. 5 CRORE

Answer is D
 Terminal Questions
 Canara CANARA MSME STAR MAXIMUM LOAN’

 a. NO LIMIT
 b. 25 CR
 c. 10 CR
 d. 20 CR

Answer is : A
 Terminal Questions
 ‘CANARA MSME CONTRACTOR’ SCHEME
MAXIMUM LOAN UNDER TL Rs ………..

 a. 10 CR
 b. 15 CR
 c. 100 CR
 d. 20 CR

Answer is : A
 Terminal Questions
 Doctor choice Scheme MAXIMUM LOAN Rs ………..

 a. 10 CR
 b. 2 CR
 c. 100 CR
 d. 5 CR

Answer is : d
 Terminal Questions
 Canara Mahila Vikas Scheme MAXIMUM LOAN
Rs ………..

 a. 10 CR
 b. 2 CR
 c. 100 CR
 d. NO LIMIT

Answer is : d