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Andhra Bank MSME Loan
Overview
In the world of business, there are times when financing support is required to move ahead. This can be for expansion, setting up a new unit, purchase of new production tool or machinery or easing out working capital requirements. Micro, Small and Medium Enterprises (MSME) loans have been made available for such purposes and helps in boosting overall business. Andhra Bank offers MSME Loans through many schemes to suit the needs of different borrowers. Andhra Bank MSME Loans are broadly categorised into Manufacturing and Service Sectors wherein investments are made mainly in plant & machinery and Equipment. Financing amount ranges from a maximum of Rs. 25 lacs in the Micro Enterprises segment to Rs. 5 crores in Medium Enterprises segment. More details on Andhra Bank MSME Loans can be read below.
List of Andhra Bank MSME Loans
Andhra Bank offers many schemes through MSME Loans.The details are outlined below:
Credit facilities are offered up to Rs. 5 crores. The margins on this credit are:
- 25% on stocks
- 30% on receivables up to 90 days only
- 25% on term loan for equipment, tools, furniture & fixture, computer hard wares etc.
- 50% on term loan for acquiring or construction of premises
- 20% cash for letter of credit/bank guarantee
1) MSME - Mitra
| Objective | To finance outstanding GST receivables of MSME Units |
| Eligibility |
|
| Quantum of loan | 20% of existing fund based working capital limit or 80% of input tax credit, whichever is lower |
| Tenure | One bullet payment in 8 months |
| Collateral Security | NIL |
| Processing Fees | Rs. 100 per lac subject to maximum of Rs. 25,000/- |
2) ABhivrudhi - Financing to MSEs
| Objective | To finance working capital and TL requirements of MSE borrowers (including Traders) against property |
| Eligibility | All MSE units subject to investment in Plant & Machinery/Equipment as per MSMED Act 2006.
|
| Quantum of loan | Minimum: Above Rs 10 lacs Maximum: Rs 6.00 Crs |
| Tenure | For TL: Repayable in maximum 7 years including holiday period. For WC limits: 2 years |
| Collateral Security | Primary for TL: All the assets created out of the TL Primary for BG/LC: Cash margin of minimum 15%, counter guarantee of the applicant and extension of charge on entire current assets of the unit |
| Processing Fees | As per extant loan policy guidelines of the bank |
3) Term Finance
| Objective | For setting up new units/ Increasing the capacity of existing units/ Diversification/Modernization. |
| Eligibility | Based on Technical viability and economic feasibility of the project to service the debt |
| Quantum of loan | NIL |
| Tenure | 5-7 years excluding holiday period. |
| Collateral Security | Primary: First charge on assets created out of Term loan. Collateral: No collateral for credit limits up to Rs.10 lacs in case of stand-alone Term loan/Composite loan. For credit limits above Rs.10 lacs as per guidelines of the Bank |
| Processing Fees | NIL |
4) Standby Term Loan
| Objective | For acquiring additional machinery like, Lathe machines, Generator, Balancing equipment, Vehicles etc |
| Eligibility | “A” and above rated MSME borrowers satisfying the availability of long-term funds for repayment of the loan |
| Quantum of loan | 20% of the Fund based limits (Term loan & Working capital) subject to a cap of Rs.20 lacs |
| Tenure | Maximum 5 years |
| Collateral Security | Primary: Assets to be purchased out of the loan Collateral: Existing collateral securities continue |
| Processing Fees | NIL |
5) Artisans Credit Card (ACC) Scheme
| Objective | To provide adequate and timely assistance to the artisans to meet their credit requirements for both term loan and working capital. |
| Eligibility |
|
| Quantum of loan | Individual Rs.30,000/- and Rs.2.00 lacs per Group |
| Tenure | 3 Years subject to annual review |
| Collateral Security | Hypothecation of assets created out of the loan |
6) AB Power Tools (Shakti)
| Objective | To provide Term loans for purchase of Power Tools and need based working capital |
| Eligibility | All artisans and self-employed persons who are engaged in the field of Carpentry & wood works, servicing & repairs of automobiles, electrical and sanitary servicing |
| Quantum of loan | Maximum loan amount is Rs.1 lac or as per the actual requirement |
| Tenure | Repayable in 3-5 years in appropriate EMI with 6 months repayment holiday. |
| Collateral Security | Hypothecation of Tool Kits/Stock in Trade |
7) Technology upgradation fund scheme (TUFs) for textile & jute industries in SSI Sector
| Objective | A scheme devised by Govt. of India, Ministry of Textiles, to enable SSI units (Textile/Jute industrial sector) to induct State-of-the-art technology |
| Eligibility | Sole Proprietorships, Partnerships, Co-operative Societies, Private/Public limited companies.
|
| Quantum of loan | No maximum limit |
| Tenure | Within 7 years including moratorium up to 1 year |
| Collateral Security | First charge on fixed assets financed under the scheme additional security such as personal guarantees, pledge of promoters, share holdings |
8) Credit Guarantee Fund Trust for Micro and Small Enterprises
| Eligibility | Guarantee Cover is provided by the trust for the credit facilities to an extent of Rs. 200 lacs without any collateral security or third-party guarantees Credit facilities sanctioned to an eligible borrower with interest rate more than 4% over base rate are not eligible | ||
| Borrower Category | Up to Rs.5 lac | Above Rs.5 lac Up to Rs. 50 lacs | Above Rs.50 lac up to Rs. 100 lacs |
| Micro Enterprises * | 85% of the Amount in Default subject to a maximum of Rs. 4.25 lacs | 75% of the Amount in Default subject to a maximum of Rs.37.50 lacs | 50 % of the amount in default subject to a maximum of Rs. 100 lacs |
| Women Entrepreneurs / Units located in North East Region (incl. Sikkim) (Other than credit facility up to Rs.5 lacs to micro enterprises) | 80% of the amount in Default subject to a maximum of Rs. 40 lacs | 50 % of the amount in default subject to a maximum of Rs. 100 lacs | |
| All other category of borrowers | 75% of the amount in Default subject to a maximum of Rs. 37.5 lacs | 50 % of the amount in default subject to a maximum of Rs. 100 lacs | |
9) Pavala Vaddi Scheme
| Eligibility | New Micro and Small Enterprises set up in Andhra Pradesh except Vizag, Vijayawada and Hyderabad. The units should be promptly repaying the loan instalments |
| Availing Term Loan | Loan should be availed on fixed capital investment by the eligible new Micro and Small Enterprises on or after 1st April 2008 More than 75% of the plant and machinery should be new |
| Amount of reimbursement | Reimbursable interest on term loan is the portion that exceeds 3% per annum |
| Mode of reimbursement | Maximum limit of 9% on half-yearly basis |
10) Scheme of Technology Upgradation
| Purpose | Upgradation of processing facilities |
| Eligibility |
|
| Scope and Spread |
|
11) Mutual Credit guarantee scheme in association with ALEAP & CGSTI for women entrepreneurs
| Eligibility | Single eligible borrower in Micro and Small Enterprises sector for credit facility up to Rs. 100 lacs excluding retail trade without any collateral security |
| Loan type | Term Loans and Working Capital limits |
| Loan amount | Rs. 15 lacs |
| Collateral Security | NIL |
| Tenure of Guarantee Cover | 5 years or block of 5 years where working capital is considered |
| Amount of Guarantee Cover | 75% of Term Loan outstanding 75% Non-fund based and Fund based Working Capital Limit or outstanding whichever is lesser |
12) Credit Linked Capital Subsidy Scheme for Technology Upgradation of small-scale enterprises
| Purpose | Technology upgradation for SSI units in specified products/sub-sectors by providing capital subsidy for induction of well-established and improved technologies |
| Eligibility |
|
| Loan amount | Maximum limit is Rs. 100 lacs Capital Subsidy is 15% of eligible plant and machinery subject to Rs.15 lacs |
13) National Equity Fund Scheme
| Eligibility | New projects/existing units under Tiny/Small scale sector/service enterprises |
| Project Cost |
|
| Loan Amount | Amount of gap in equity as per prescribed DER after taking into account promoters’ contribution, to the extent of 25% of the project cost subject to a maximum of Rs.10 lakhs |
| Repayment of Loan | Soft loan is repayable in 7 years (including moratorium of 3 years) in tune with the repayment period of normal term loan permitted by Bank for the project. Non repayment of Soft loan would attract interest as stipulated by SIDBI. |
14) Prime Minister Employment Generation Programme
| Purpose |
|
| Eligibility |
|
| Bank Finance |
|
| Repayment | 3 to 7 years |
15) AB Laghu Udhyami Credit Card (LUCC) Scheme
| Purpose | Meet the credit requirements of Small Business, Retail Traders, Professional and self-employed people, artisans, village industries, micro and small enterprises |
| Loan amount | Rs. 10 lacs per borrower |
| Margin | 25% |
| Security | Hypothecation of stock in trade receivables, machinery, office equipment etc. |
| Collateral Security | Existing securities along with co-obligation/guarantee |
| Validity | 3 years |
16) Open Cash Credit
| Purpose | For meeting working capital requirement of MSME Units |
| Loan tenure | Renewable every year |
| Margin | 20%-25% in the case of stocks and 30% in the case of book debts/receivables |
| Security | Stocks and Receivables |
| Collateral Security | Up to Rs. 10 lacs: NIL Above Rs. 10 lacs: Land and Building, Plant and Machinery, other fixed assets |
17) Composite Loan Scheme
| Purpose | For supporting equipment finance or working capital or both |
| Eligibility | Artisan, Village Industries, Cottage Industries and Micro enterprises |
| Margin | Up to Rs. 25,000 – Nil Above Rs. 25,000 up to Rs. 25 lacs – 15% to 25% Above Rs. 25 lacs up to Rs. 100 lacs – as per bank guidelines |
| Loan Amount | Maximum Rs. 100 lacs |
| Security | Pledge, Hypothecation, Mortgage of Assets |
| Collateral Security | Up to Rs. 10 lacs: NIL Above Rs. 10 lacs: As per bank policy |
18) AB Doctor Plus
This scheme helps in providing finance to qualified medical practitioners and doctors in any branch of medical science
| Purpose |
|
| Eligibility |
|
| Margin | 25% for equipment/ambulance/furnishing Working capital limit: 75% of the revenue expenditure |
| Loan Amount | Maximum Rs. 20 lacs |
| Collateral Security | Not required |
| Nature of facility | Term Loan/OD/Both |
| Rate of Interest | Base Rate + 3.25% |
| Repayment Schedule | Maximum 84 months For working capital limits – 1 year |
How to apply for Andhra Bank MSME Loan
Andhra Bank MSME Loan can be applied online through the official website. The application form can be downloaded or accessed and completed details needs to be submitted for further processing. One can also drop into the nearest branch of the bank for consultation and information on the product. The bank representative will assist you with details and advice on the best suited loan on the basis of your business profile. Application form can be submitted physically at the bank as well.
FAQs: Andhra Bank MSME Loan
1.What is the tenure for MSME – Mitra loan from Andhra Bank?
The tenure for the MSME – Mitra Loan is one bullet payment in 8 months.
2. What are the eligibility criteria for ABhivrudhi - Financing to MSEs?
3. What is the maximum amount of loan available on Allahabad Bank Weavers Credit Card (WCC) Scheme?
The maximum loan amount available to an individual under this scheme is Rs. 2 lacs.
4. What is the Allahabad Bank Laghu Udhyami Credit Card Scheme?
Under this scheme, financial assistance is offered for providing working capital for the business. Term loan is also available for purchasing production tools or equipment for the process.
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