Bank Of Maharashtra MSME Loan

Bank of Maharashtra MSME Loan

MSME sector is the backbone of the Indian economy. The rural setup plays an important role contributing towards lakhs of employment opportunities and the export of indigenous products to various foreign destinations. Supplying them with sufficient credit is the primary role of banks and financial institutions across India. It is important for them to have accessible financial aid to provide for their working capital requirements and investment needs.

Bank of Maharashtra has been serving the Indian rural landscape for nearly 90 years now. They are one of the major public sector banks with the widest network of branches across the country. They offer various loans and schemes for the MSME sector, thus encouraging entrepreneurial spirit to provide employment opportunities.

1. Pradhan Mantri Mudra Yojana

• This scheme offers term loans & cash credit facility to units engaged in manufacturing, trading & service activities
• These units can avail a loan of up to Rs. 10 lakhs
• Food products sector, activities allied to agriculture and services relating to farming can avail up to Rs.10 lakh under the scheme
• There are 3 different plans under this scheme

Shishu Loans up to Rs.50,000

Kishore Loans from Rs.50,001 to Rs.5,00,000

Tarun Loans from Rs.5,00,001 to Rs.10,00,000

• MUDRA Debit Card will be provided to all Cash Credit account holders under the scheme
• The interest rate for MSME loans up to Rs.10 lakhs is calculated as MCLR + BSS

2. Maha MSME Project Loan Scheme

• A term loan scheme available for various projects
• CGTMSE Cover allows for no collateral security for loans up to Rs.0.50 crore
• Rebates in interest rates for loans where collateral security is provided
• Margin of 25%
• Primary security of assets purchased/created
• Repayment period up to 10 years including moratorium period of maximum 2 years

3. Stand-Up India Scheme

• Loan scheme specially designed for SC/ST and/or woman entrepreneurs, above 18 years of age.
• Specifically awarded to Green Field Projects, the first venture of the beneficiary in the manufacturing or services or trading sector.
• Composite loan from Rs.10 lakh to Rs.100 lakh
• The loan can be secured with a primary security along with collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India loans
• Repayment tenure of 7 years with a maximum moratorium period of 18 months
• Minimum margin of 25%
• Cash credit limit to finance need based working capital requirement
• Interest rates:

For loan of Rs 10.00 lakh	@ MCLR
For loans above Rs 10 lakh up to Rs 100 lakh	As per Risk Based pricing for Micro & Small enterprises

4. Maha MSME Machinery/Equipment Scheme

• The scheme offers term loan facility for purchase of machinery & equipment
• Maximum loan amount of Rs.20 crore
• Loan amounts of up to Rs.1 crore do not require collateral security
• Hypothecation of equipment/asset purchased or created serves as primary security
• Repayment tenure of up to 7 years including moratorium period
• Rebates in interest rates for loans where collateral security is provided
• Margin of 25%

5. Maha MSME Cash Credit Scheme

• Scheme aims at providing working capital financing through cash credit facility
• Primary security in way of current assets [Inventory & Receivables up to 180 days]
• Rebates in interest rates for loans where collateral security is provided
• Margin of 25%

6. Maha MSE Collateral Free Term Loan Scheme

• Scheme offers term loans for business purposes
• Maximum amount of Rs.1 crore can be availed as loan
• Primary security of assets created as per CGTMSE guidelines
• No collateral security is mandated as per CGTMSE guidelines
• Repayment tenure of up to 7 years including moratorium period
• Margin of 25%

7. Maha MSE Collateral Free Cash Credit Scheme

• Scheme offers cash credit facility for working capital purposes
• Maximum amount of Rs.1 crore can be availed as loan
• Primary security of assets created as per CGTMSE guidelines
• No collateral security is mandated as per CGTMSE guidelines
• Repayment tenure of up to 7 years including moratorium period
• Margin of 25%

8. Mahabank Vehicle Loan Scheme for Small Road Transport Operator

• Scheme offers term loans for the purchase of commercial vehicles
• Quantum of loan is up to Rs.2 crore
• Hypothecation of the vehicle purchased serves as primary security
• No collateral security for loans up to Rs.1 crore
• Minimum 15% margin
• Repayment tenure of up to 7 years including moratorium period

9. Mahabank Loan Scheme for Doctors, Chartered Accountants, Engineers & Architect

• Scheme offers composite loans to Doctors, CAs, Architects & Engineers
• Loan amount to be utilized to set up business premises, purchase or construction of building
• Composite loan limit up to Rs.5 crore for Doctors
• Composite loan limit up to Rs.2 crore for CA, Engineers & Architect
• Hypothecation of the assets purchased or created serves as primary security
• No collateral security for loans up to Rs.2 crore [CGTMSE Cover]
• Minimum 15% to 25% margin
• Repayment tenure of up to 7 years including moratorium period

10. Maha Doc+ Loan Scheme

• Scheme is aimed at qualified registered medical practitioners with minimum qualification of BAHMS/BAMS / BPT / MBBS / BDS
• Loan amount can be utilized for the following purposes:
• For acquiring premises on ownership basis required for running Clinics/Nursing Homes, Polyclinics, pathological lab subject to compliance with the concerned authorities
• Purchase of equipment, furniture & fixture, furnishing, professional tools, computers, UPS, software etc.
• Renovations, expansion and modernisation of existing centre
• Purchase of vehicles, ambulance etc. for medical practitioner
• Working Capital requirement including stock of medicine/disposables
• Quantum of Loan – Rs.50 lakhs for Rural & Semi-Urban areas
• Up to Rs.500 lakhs for Urban & Metro areas
• Margin of 25% dependent on the requirement and assessment
• Hypothecation of assets purchased or created and other collateral security is mandated
• Repayment tenure of 12 years maximum

11. Mahabank Scheme for units engaged in Hospitality

• Scheme for individuals and businesses engaged in the hospitality sector
• Loan can be availed by existing/prospective owners of Hotels, Restaurants, Fast Food Centres, Pizza Centres (Franchisees), Caterers, Motels (Dhaba), Bakeries, Mess, Tour Operators, Water Sports, Amusement Parks, Floating Restaurants, House Boats etc.
• The applicant can be an individual or Proprietorship, Partnership Firm, LLP, & Corporates
• Investment should be less than Rs.5 crore to be classified as an MSME under the MSMED Act
• Extended as term loan or working capital
• Owner of the property shall be taken as the personal guarantor for the credit facilities availed
• Quantum of loan

Term loan - Min. Rs.10 lakhs to Max. of Rs 10 crore

Working Capital: Min. Rs.10 lakhs to Max. of Rs 2 crore

• Rate of interest

  Loan up to Rs.5 Crore	1 Year MCLR (8.60%) + 1.75% + BSS (0.25%)
  Loan above Rs.5 Crore to Rs.10 Crore	MCLR (8.60%) + 2.00% + BSS (0.25%)

12. Mahabank Scheme for Contractors

• Scheme aimed at Contractors of various sectors, viz., Civil Contractors, Mining Contractors, Engineering Contractors, Transport Contractors, Electrical Contractors, Road Contractors, Irrigation Contractors, Pipeline Contractors, etc.
• These contractors must have established themselves as Proprietorship / Partnership firms / Limited Companies
• These MSME Units must have been engaged in the business line for at least the last 3 years
• They should have been making a profit for the last 3 years and should possess audited financial statements for the past 2 years
• Loan extended as Cash Credit, FLC/ILC & BG facility for meeting working capital requirement or as Term Loan for purchase of equipment/machinery/vehicle.
• Rate of interest

Loan up to Rs.5 Crore	1 Year MCLR (8.60%) + 1.00% + BSS (0.25%)
Loan above Rs.5 Crore to Rs.10 Crore	MCLR (8.60%) + 1.50% + BSS (0.25%)

How to apply for Bank of Maharashtra MSME Loans?

It is very easy to apply for MSME Loans with Bank of Maharashtra. The official webpage allows customers to fill out the application form and submit it. The customer is then required to submit all the relevant documents to the bank for the process to be completed. Given below is a common list of documents required by banks for MSME Loan processing.

• Proof of Identity: Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present Bankers of Proprietor, Partner of Director (if a company)
• Proof of residence: Recent telephone bills, electricity bill, property tax receipt /Passport / voter’s ID Card of Proprietor, Partner of Director (if a company)
• Proof of Business Address
• Last 3 years balance sheets of the units along with income tax / sales tax returns etc.
• Memorandum and articles of association of the Company / Partnership Deed of partners etc.
• Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
• Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
• SSI/MSME registration if applicable.
• Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan
• In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions.
• Photocopies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities.
• Position of accounts from the existing bankers and confirmation about the asset being standard with them (in case of takeover).

FAQs: Bank of Maharashtra MSME Loans

Yes, security in the form of hypothecation of the equipment or asset purchased is required in relevant loan schemes. It is dependent on the loan amount and the type of advance that is offered. Customers are requested to verify with the bank on the required security and collateral.

Yes, the bank shall have the right to generate your credit score from authorized Credit Information Companies to evaluate your credit score while processing the loan application.

Collateral securities can be in the form of freehold land or building, term deposit receipts, NSCs or KVPs, insurance policies, debt instruments of Public Limited Co., Govt. Securities, etc., to name a few.

As per RBI guidelines, MSME sectors can avail loans of up to Rs.1 crore without any collateral security. It also depends on the bank’s discretion on a case to case basis.

Bank of Maharashtra offers loans starting from Rs.50,000 up to Rs.25 crores, based on the needs of the borrower and the collateral security they are able to provide. Borrowers with a healthy credit score and a good business relationship with the bank can get higher loan amounts based on their credibility.