Bank Schemes

M.
BHUJANGA RAO
LIASION OFFICER PMEGP KVIC HYDERABAD
LEAD DISTRICT MANAGER (Retd)
Agri, Entrepreneurship CSR Professional
MSME-IMPORTANCE-CONTRIBUTION
 GDP: 30% (Mfg: 6%+ Ser: 24%)
 Projection: 50%(2025)
 Export: 48%
 No. of units: 6.5cr
 Employment: 12cr
Why one should become Entrepreneur
 To pursue passion
 To be your own boss
 To become job giver to seeker
 To support family economically
 To create impact on Society
 To participate in nation building

TIPs for your Entreprenurial Dreams
 Do you really need loan
 Choose the right loan Scheme
 Filling your application
 Credit Score matters
 Proven Track Record / Tested model
 Collateral can be crucial

How to choose the Venture / Activity
 Look around at existing business
 Identify the pains &
 Study the features in the proposed line
 Study the successful Enterprises and look for further scope
 Foresee the growing needs of society
 Look at your own Skills or update or acquire skills required
 Based on Capital / Skills requirements

PRIORITY SECTOR & MSME
PRIORITY SECTOR (40%) : AGRICULTURE, MSME, HOUSING,

EDUCATION
(Amt in Crores)
Manufacturing MICRO SMALL MEDIUM
& Services
INVESTMENT 1 10 50
TURN OVER 5 50 250

Selection of Project / Unit / Sector
 Experience of knowledge in the area
 Marketability of the product / service
 Raw material & Manpower supply
 Type of Unit – Manual / Semi / Auto
 Capital & Financial position
 Infrastructure – Land, Building,

Roads
 Inherent risks
Types of Firms / Business Entity
 Individual / Proprietorship
 Partnership (Upto 20)
OPC-1% Company
 Limited Liability Partnership (LLP)
 Private Limited Company (2-200 Mem)
 Public Limited Company (Min - 7Mem)

How to be “Bank Ready”
1.First time Entrepreneur / Green Field Project

Constitution – Documents
KYC – Proof of Identity & Residence of Partners / Promoters /
Directors
Project details & brief report (with realistic projections)
Registrations & Permissions
Source of funds & Margin
Market strategy
Security or CGTMSE cover
Bank dealings & CIR
II. Expansion or Modernization

Besides the above, Balance Sheet & P&L for last few years
Bank transaction details for 6 months
Need for Expansion
How to become successful in getting Loan
 Be clear on why and what you intend to do (entire process –

Market – Competitions)
 Clarity on what you invest & what you want from Bank
 Be honest on your strengths & weaknesses and mitigation
 Guide the talk and do not just guided
 Be as open & transparent with Banker
 Take an introduction from the respectable and Credit worthy
 Take support of handholding or certified credit councellor
 Convince your Banker on your passion and desire to excell
Credit Information Report (CIR)
 Gives your Score Card on repayment track
 Personal Cir – Score preferred
 Commercial CIR – Score preferred
 Four Companies offering CIR
CIBIL CRIF EQUIFAX EXPERIAN
>750 Normal >720 Normal >654 Normal >775 Normal
One time report in a year is free

 Any mistakes can be rectified
 Personal Guarantees also will reflect
 Write off more than 3 years back will be ignored
 Credit Card, WO/OTS will be ignored
Risk Rating of Proposals
 Supports decision making & approvals
 Enhance Risk Management Capabilities
 Scoring Based on :
Demographics (20%) Profile
Business Risk (30%) Market
Financial Risk (30%) Ratios
Management Risk (20%) CIR & Exp
>75/100 willo be normal Score
 Each Proposal will be risk rated before sanction
 RoI also will differ with risk rating score
CGTMSE (Govt Guarantee)
 All Loans upto Rs.10 Lakhs compulsorily covered under

CGTMSE
 Above Rs.10 Lakhs to Rs.200 Lakhs optional
 Hybrid Loan / Security Scheme
 Cover comes with cost 0.75 % – 1 %
 MUDRA / SUI / PMEGP – No Collateral Security
Extent of Guarantee Cover
Category < Rs.50 Lacs >Rs.50 to 200 Lacs
MICRO 75% (A) (A)+50% Max 100 Lacs
WOMEN 80% (B) (B)+50% Max 100 Lacs
OTHERS 75% (C) (C)+50% Max 100 Lacs
Raising Capital / Borrowing Sources
 Own funds savings
 Subsidy / Margin Money (Back / Front)
 Borrowings from Family / Friends / Gold

(with or without Int)
 Loans from Banks / NBFC / MFI
 Angel Investors / Venture Capitalists
 Crowd funding (E.g:- go fund me/kick starter)
 Peer to Peer lending (E.g: i2i, ilend, lend box)

Purpose of Loan
 Purchase of Land & Buildings there on
 Purchase of Plant & Machinery and Equipment
 Working Capital Needs ( Raw material &

Processing)
 Bank Guarantee & Letters of Credit
 Bill Financing
SECURITY
Mortgage of Land & Buildings of the Unit

PRIMARY finance
Hypothecation of Plant & Machinery
Mortgage of Land & Building other than the

Unit
COLLATERAL Deposits, shares, Gold etc belonging to
Promotors, Partners, Directors & Relatives
Exceptional cases of third party
Security will improve chances of success for Loan

REPAYMENT & ROI
Fixed on Income & Cash flow

Term Loans 5-7 years in Monthly Repayment
REPAYMENT Holiday initial 6-18 Months
Running limit for one year
Opt for max repayment period
Simple / Compound / Flat

ROI Banks Linked to PMLR +
Based on Risk Rating & Security
National Live Stock Mission
Promotion
P of Entrepreneurship in Rural Poultry,
Sheep, Goat,Pig & Fodder - Breed and fodder
development.
Individuals, FPOs, SHGs, Societies are eligible
Subsidy Celling : Poultry : 25 lakhs

Sheep & Goat : 50 Lakhs
Fodder : 50 Lakhs
Website: www.nlm.udyamimitra.in
Agri Clinics & Agri Business
Centers (ACABC)
Degree & Diplamo holders of Agri, Agri Engineering allied
subjects, B.Sc with BZC
45 days Residential EDP course through nodal Training

institutes of MANAGE
Projects : Post horvest, ICT, AH, FM, SCM,FSC, Dairy,

Fisheries, Precision forming
Project Cost : Rs. 20 lakhs

Subsidy: 36% for General
44% for special category
Website: www. Agriclinics.net

AGRI INFRASTURCTURE FUND(AIF)
 Agri entrepreneurs, Farmers, FPOs, SHG, Societies, Local Bodies
 Supply chain services, warehouses, pack houses, cold chains,

grading units, ripping chambers, primiry processing centers.
 Loans up to 2 cr.
 Inter subvention of 3% for 7 years
 Credit guarantee fee will be born by Govt.
 www.agricoop.nic.in
NATIONAL HORTICULURAL BOARD (NHB)
 Agri entrepreneurs, Farmers, FPOs, SHG, Societies, Local Bodies
 Supply chain services, warehouses, pack houses, cold chains,

grading units, ripping chambers, primary processing centers.
 Backended subsidy of 35% maximum Rs.50.75 Lakhs for post

Harvest Infrastructure
 Cold storages at 35%
 www.nhb.gov.in
PMEGP
 To provide employment through self-employment venture
 Service Activity – Project Cost Rs.20 Lakhs
 Industrial Activity – Project Cost Rs.50 Lakhs
(Over and above also can be considered without any subsidy)
Allied agri can be considered under this scheme
 No Age, Income Restrictions
 Minimum Education VIII Standard
 Subsidy (Back End) – 15–35%
 Margin - 5-10%
 II Dose upto Rs.100 Lakhs with 15% subsidy
Application online:www.kvicinline.gov.in
MUDRA
 To Income generating Micro and Small

Enterprises
 Manufacturing, Service, Trading and

Allied Agriculture Activities eligible
 Loans upto Rs.10 Lakhs
 No Collateral Security
 Application through Online:www.udyamimitra.in or

though Branch
STAND UP INDIA
 Setting up a green field enterprise

 Beneficiary should be woman or SC/ST borrower
 Loan quantum Rs.10 Lakhs to Rs.1 Crore
 Enterprise may be Manufacturing, Services or Trading
Sector
 CGTMSE coverage available. Hence no Collateral Security
required.
 No subsidy available
 Application through official website or Bank Branch
 Official Website :www.standupmitra.in
PSB Loans in 59 Minutes
 Common Platform for filing application

 Applicable to existing units with IT & GST
 Business Loans – Upto Rs.500 Lacs
 Industry Loans – Upto Rs.1000 Lacs
 Home Loans – Upto Rs.1000 Lacs
 Car Loans – Upto Rs.100 Lacs
 Personal Loan - Upto Rs.10 Lacs
 In Principal Sanction within 59 Minutes
 Technology integration with IT, GST and Banks
 Collateral free loans also can be applied.
Scheme for Formalization of Micro Food Processing Enterprises
PM FME
 Upgrading existing Micro Units – Credit Linked subsidy @

35% subject to a max of Rs.10 Lakhs.
 FPOs/SHGs/Cooperatives - Credit linked capital investment

grant @35%
 Seed Capital support of Rs.40,000 to SHG members for

working capital & small tools
 Common infrastructure – credit linked grant @35%

Common processing facility, labs, incubation centre, warehouse,
storage etc.
 Support for marketing & Branding – 50% grant
 See www.mofpi.nic.in for PMFME Scheme details

EDP, HHI & SKILL DEVELOPMENT
 Govt Departments, NGOs, Industries, Associations
 Lead Bank - District level by Banks

 RSETIs - District level by Banks
 FLC - District level by Banks
 DIC - District level
 MSME-Di - at State level
 ALEAP - at National level
 AIC - at Select locations
 EDP - at College University level
IMPORTANT WEBSITES
www.udyamimitra.in or Handholding Support

my.msme.gov.in Credit Councellors
MSME Application filing
MUDRA / SUI / CGTMSE
www.kviconline.gov.in PMEGP Application filing
Model Project reports
Online EDP
www.standupmitra.in Filing Stand Up India Application
www.niti.gov.in/women- Platform for Women Entrepreneurs
entreprenuership-platform-web
www.smallb.in Small Business Portal of SIDBI
www.udyogaadhaar.gov.in For registration of Unit
www.aleap.org Women Entrepreneur Hub
Handholding Institution
Mission swavalambam (Sidbi) Handholding support
THANK YOU
M. BHUJANGA RAO
LIASION OFFICER PMEGP KVIC HYDERABAD
LEAD DISTRICT MANAGER (Retd)
E-Mail :[email protected]

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M.

 GDP: 30% (Mfg: 6%+ Ser: 24%)

 No. of units: 6.5cr

 To be your own boss

 To become job giver to seeker

 To support family economically

 To create impact on Society

 To participate in nation building

 Do you really need loan

 Choose the right loan Scheme

 Filling your application

 Credit Score matters

 Proven Track Record / Tested model

 Collateral can be crucial

 Look around at existing business

 Identify the pains &

 Study the features in the proposed line

 Study the successful Enterprises and look for further scope

 Foresee the growing needs of society

 Look at your own Skills or update or acquire skills required

 Based on Capital / Skills requirements

PRIORITY SECTOR (40%) : AGRICULTURE, MSME, HOUSING,

TURN OVER 5 50 250

 Experience of knowledge in the area

 Marketability of the product / service

 Raw material & Manpower supply

 Type of Unit – Manual / Semi / Auto

 Capital & Financial position

 Infrastructure – Land, Building,

 Partnership (Upto 20)

 Limited Liability Partnership (LLP)

 Private Limited Company (2-200 Mem)

 Public Limited Company (Min - 7Mem)

1.First time Entrepreneur / Green Field Project

II. Expansion or Modernization

 Be clear on why and what you intend to do (entire process –

>750 Normal >720 Normal >654 Normal >775 Normal

One time report in a year is free

 All Loans upto Rs.10 Lakhs compulsorily covered under

 Own funds savings

 Subsidy / Margin Money (Back / Front)

 Borrowings from Family / Friends / Gold

 Loans from Banks / NBFC / MFI

 Angel Investors / Venture Capitalists

 Crowd funding (E.g:- go fund me/kick starter)

 Peer to Peer lending (E.g: i2i, ilend, lend box)

 Purchase of Land & Buildings there on

 Purchase of Plant & Machinery and Equipment

 Working Capital Needs ( Raw material &

 Bank Guarantee & Letters of Credit

Mortgage of Land & Buildings of the Unit

Mortgage of Land & Building other than the

Security will improve chances of success for Loan

Fixed on Income & Cash flow

Simple / Compound / Flat

Individuals, FPOs, SHGs, Societies are eligible

Subsidy Celling : Poultry : 25 lakhs

45 days Residential EDP course through nodal Training

Projects : Post horvest, ICT, AH, FM, SCM,FSC, Dairy,