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HANDBOOK N
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MSME
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Baroda Apex Academy

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Gandhinagar
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Handbook

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MSME

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Bank of Baroda

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Baroda Apex Academy,
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6th Floor, GH – 4,
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Near Udhyog Bhavan, Sector – 11,

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Gandhinagar – 382011,
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Gujarat, India
T – 079- 23973201 -240
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Email – sc.ahmedabad@bankofbaroda.com
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MSME Handbook: Updated Up to 31.03.2021

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Note - “The information contained in this handbook is confidential, privileged and intended
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strictly for internal circulation only and not for any public use/consumption.
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The Information contained in this handbook is general in nature and prepared for learning
purpose only. This handbook should not be construed as substitute for the
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Guidelines/Circulars/Book of Instructions. All decisions should strictly be taken in

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accordance with the Guidelines specified in the Circulars/Book of Instructions/Manuals/

SOPs etc. issued by the Bank from time to time. Query, if any, may be taken up with the
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concerned vertical.”
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 Foreword

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I congratulate team Apex Academy for coming up

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with a new version of MSME Handbook.

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Handbooks are not substitutes for guidelines but

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are ready reckoners and serve as references if
enriched continuously. Further, handbooks should

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serve as a one-stop solution for all queries of a

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user/reader.

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Credit, especially MSME being a dynamic

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ecosystem, needs sustained upgradation both on

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part of contents i.e. this handbook as well as its
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users. Users, apart from taking advantage of the
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document, should also contribute for its continuous

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amelioration.
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I trust all those who were given task of updation of

this handbook have sincerely put in their efforts to
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make it an inevitable compendium, but

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simultaneously, a scope for improvement is also

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inevitable. Users are requested to share their

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valuable inputs with Apex team to make this

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handbook an ‘Asset’.
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Dipankar Guha
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Head-Apex Academy
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Contents
1. MSME CLASSIFICATION AS PER MSMED ACT, 2006 ............................................................................................................................ 4

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1.1 MANUFACTURING ENTERPRISE: ................................................................................................................................................................... 5

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1.2 SERVICE SECTOR ENTERPRISES: .................................................................................................................................................................. 11
1.3 EXCEPTIONS TO THIS ARE LOANS GIVEN FOR AGRICULTURE & AGRI ALLIED ACTIVITIES: ......................................................................................... 11

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1.4 RETAIL TRADE (REGULATORY MSME UNDER SERVICES SEGMENT): ................................................................................................................ 11
1.5 REGULATORY MSME CLASSIFICATION IS BASED ON THE FOLLOWING TWO FIELDS AVAILABLE IN FINACLE AS UNDER- ................................................... 13

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1.6 COMPUTATION OF VALUE OF PLANT & MACHINERY: ........................................................................................... ERROR! BOOKMARK NOT DEFINED.

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1.7 DOCUMENTS TO BE RELIED UPON FOR CLASSIFICATION OF MSME ...................................................................................................................... 8

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2. OUR BANK’S APPROACH - MSME SECTOR ........................................................................................................................................ 14

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3. OUR BANK’S INTERNAL GUIDELINES FOR MSME .............................................................................................................................. 15

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3.1 ASSESSMENT OF WORKING CAPITAL .......................................................................................................................................................... 15

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3.2 MARGIN: ............................................................................................................................................................................................ 15
3.3 RATE OF INTEREST: .................................................................................................................................................................................. 16
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3.4 PENAL INTEREST ..................................................................................................................................................................................... 19
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3.5 COLLATERAL FREE LOANS ......................................................................................................................................................................... 19
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3.6 CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLSS): ........................................................................................................................................ 20

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3.7 REVIEW WITH LIMITS UP TO RS. 20/-25/- LACS PENDING RECEIPT OF AUDITED FINANCIAL STATEMENTS ................................................................... 21
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3.8 NEW ORIGINATIONS-PRIORITIES & APPROVAL.............................................................................................................................................. 21

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3.9 FINANCIAL RATIOS FOR CREDIT APPRAISAL ................................................................................................................................................... 22

3.10 TAKEOVER OF ADVANCE ACCOUNTS .......................................................................................................................................................... 25
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3.11 CREDIT RATING ..................................................................................................................................................................................... 26

3.12 COMMON GUIDELINES .................................................................................................................................................................... 31
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3.13 INTEREST SUBVENTION SCHEME FOR MSMES ............................................................................................................................................ 36

3.14 CONCESSION IN MSME ACCOUNTS .......................................................................................................................................................... 37
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3.15 ZED CERTIFICATION FOR MSME: ...................................................................................................................................................... 38

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3.16 COVID-19 AND MSME ........................................................................................................................................................................ 38

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4.0 GOVERNMENT SCHEMES & SUBSIDIES FOR MSME ........................................................................................................ 46

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4.1 STAND-UP INDIA SCHEME ......................................................................................................................................................................... 46

4.2 DAY-NULM SCHEME ............................................................................................................................................................................. 48
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4.3 PRADHAN MANTRA MUDRA SCHEME (PMMY) ............................................................................................................................................ 51

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4.4 CREDIT GUARANTEE FUND TRUST SCHEME FOR MICRO & SMALL ENTERPRISES (CGTMSE) .................................................................................. 56
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4.5 'PM SVANidhi Scheme' for Street Vendors -

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5.0 BRIEF INTRODUCTION ABOUT OUR BANK’S MSME PRODUCTS ...................................................................................................... 60

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5.1 BARODA SME SHORT TERM LOAN .............................................................................................................................................. 60

5.2 SME MEDIUM TERM LOAN ......................................................................................................................................................... 61
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5.3 BARODA VIDYASTHALI LOAN ...................................................................................................................................................... 62

5.4 BARODA AROGYADHAM LOAN ................................................................................................................................................... 67
5.5 BARODA PROPERTY PRIDE .......................................................................................................................................................... 72

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 5.6 SCHEME FOR PROFESSIONALS .................................................................................................................................................... 24
5.7 BARODA SME LOAN PACK ........................................................................................................................................................... 27

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5.8 BARODA SME GOLD CARD .......................................................................................................................................................... 28
5.9 BARODA LAGHU UDYAMI CREDIT CARD ..................................................................................................................................... 29

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5.10 BARODA ARTISANS CREDIT CARD ............................................................................................................................................... 30
5.11 BOB WEAVER MUDRA SCHEME ....................................................................................................................................................... 33
5.12 BARODA MSE GENERAL CREDIT CARD ........................................................................................................................................ 33

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5.13 SCHEME FOR FINANCING PERSONS WITH DISABILITIES .............................................................................................................................. 36

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5.14 SCHEME FOR FINANCING PERSONS WITH DISABILITIES EDUCATIONAL LOANS REFINANCE SCHEMES.................................................................... 39

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5.15 BARODA LOAN TO BUSINESS CORRESPONDENTS ....................................................................................................................... 40
5.16 COMPOSITE TERM LOAN SCHEME .............................................................................................................................................. 41

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5.17 BARODA CONTRACTOR SCHEME ......................................................................................................................................................... 43
5.18 BOB GST RECEIVABLES CARD FOR MSME ENTREPRENEURS ................................................................................................................... 47

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5.19 VENDORS BILL DISCOUNTING PRODUCT FOR VENDORS / SUPPLIERS OF LARGE REAL ESTATE DEVELOPERS ......................................................... 50

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5.20 BILL / INVOICE DISCOUNTING UNDER VALUE CHAIN FINANCE PRODUCT ..................................................................................................... 52

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5.21 MSME CAPEX CARD & CAPEX LOAN ............................................................................................................................................ 55

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5.22 BARODA LOAN FOR RESTAURANTS ............................................................................................................................................. 55

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5.23 COMMERCIAL VEHICLE FINANCE PROGRAMME ...................................................................................................................................... 57

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5.24 SEGMENT –I : THREE WHEELER FUNDING (LA015) ................................................................................................................................ 58

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5.25 BARODA E-BUSINESS PACK ......................................................................................................................................................... 59
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5.27
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CONSTRUCTION AND MINING EQUIPMENT FINANCE PROGRAMME............................................................................................................ 63
BARODA OVERDRAFT E- COMMERCE PRODUCT TIE UP WITH FLIPKART....................................................................................................... 64
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5.28 SCHEME FOR FINANCING TEXTILE UNITS............................................................................................................................................... 64
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5.29 BARODA BUDGET SMARTZ PRODUCT TIE UP WITH LAVA INTERNATIONAL LTD.............................................................................................. 65
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5.30 BARODA OVERDRAFT E- COMMERCE PRODUCT TIE UP WITH AMAZON ...................................................................................................... 66

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5.31 BARODA TANKERZ ........................................................................................................................................................................... 66

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5.32 BARODA STAYZ ............................................................................................................................................................................... 67

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MSME LENDING Guidelines
Learning Outcome

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Understand & explain classification of enterprises under MSME Act.

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Understand and explain our bank’s approach towards MSME & priority sector classification of MSME advances

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Explain salient features for Govt. Schemes for MSME.

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Understand and explain concept of CGTMSE and procedure for same

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Explain assessment of credit limits for MSME

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Explain salient features of different products of MSME.

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 1. MSME classification as per MSMED ACT, 2006

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 MSMED Act was operationalized with effect from 2nd October 2006, which defines an “enterprise” instead

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of an “industry” to give recognition to service sector and also defines a “medium enterprise” to facilitate
technology up gradation and graduation.

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The definition of Regulatory MSME is as per the criteria specified in MSMED Act 2006 and subsequent

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amendments from time to time.

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 Govt. of India vide Gazette notification S.O. 2119(E) dated 26.06.2020 (Annexure-l) has notified revised
criteria for classifying the enterprises as Micro, small and Medium enterprises and the revised definition is

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effective from 1st day of July 2020. Further RBI vide their circular no RBI/2020-2021/10 FIDD.MSME &
NFS.Bc.No.3/06.02.31/2020-21 July 2, 2020 had advised all the Banks to implement the revised

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guidelines and classify the accounts accordingly.

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

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SECTOR Existing Definition Revised Definition

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Manufacturing Services Manufacturing & Services

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Micro Investment in Plant & Investment in The investment in Plant and
Enterprises Machineries does not equipment N & Machinery or Equipment does
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exceed Rs. 25 Lakh instruments does not not exceed one crore rupees
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exceed Rs.10 Lakh AND turnover does not exceed
five crore rupees
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Small Investment in Plant & Investment in The investment in Plant and

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Enterprises Machineries more than equipment & Machinery or Equipment does

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Rs.25 Lakh but does instruments more than not exceed ten crore rupees
not exceed Rs.5 Crore Rs. 10 Lakh but does AND turnover does not exceed
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not exceed Rs.2 Crore fifty crore rupees

Medium Investment in Plant & Investment in The investment in Plant and
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Enterprises Machineries more than equipment & Machinery or Equipment does

Rs.5 crore but does not instruments more than not exceed fifty crore rupees
exceed Rs.10 Crore Rs. 2 Crore but does AND turnover does not exceed
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not exceed Rs. 5 crore two hundred and fifty crore

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rupees
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MajorHighlights of the Revised Definition are as under:

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Exports of goods or services or both, shall be excluded while calculating the turnover.
 The differentiation between Manufacturing & Services enterprises has been dispensed with.
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 The turnover related figures of such enterprise which do not have PAN, will be considered on self-
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declaration basis for a period up to 31st March,2021 and thereafter, PAN and GSTIN shall be mandatory.
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 If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of
investment or turnover, it will cease to exist in that category and be placed in the next higher category.
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 Value of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of
the previous years filed under the Income Tax Act, 1961. The online form for Udyam Registration
captures depreciated cost as on 31st March each year of the relevant previous year. Therefore, the value
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 of plant and Machinery or Equipment for all purposes of the Notification No. S.O. 2119(E) dated June 26,
2020 and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the
Financial Year as defined in the Income Tax Act and NOT the cost of acquisition or original price,

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which was applicable in the context ofthe earlier classification criteria.

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 In case of a new enterprise, where no prior ITR is available, the investment will be based on self-
declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the
financial year in which it files its first ITR. Udyam Registration Certificate' issued on self-declaration basis

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for enterprises exempted from filing GSTR and / or ITR returns will be valid for the time being, up to March

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31, 2021.

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 All existing enterprises registered under EM-part-ll or UAM shall register again on the Udyam Registration
portal on or after the 1st day of July, 2020. Further, all enterprises registered till June 30, 2020, shall file

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new registration in the Udyam Registration Portal well before March31, 2021.
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The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up
to the 31st day of March, 2021.

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

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All the existing/new Regulatory MSME borrowers shall be advised to get themselves registered on Udyam
Registration portal latest by 31.03.2021.All enterprises are required to register online and obtain 'Udyam

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Registration Certificate'.

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The detailed guidelines with regard to classification of existing as well as new accounts as under::
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 Any NEW LOAN sanctioned on or after 01.07.2020 shall be classified as MSME only after obtaining the
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Udyam Registration Certificate on https://udyamreqistration.gov.in.

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 All the existing regulatory MSME borrowers shall be advised to get themselves registered on Udyam
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Registration portal at the earliest.

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 PAN & GST details of all the existing Regulatory MSME borrowers, who are eligible to continue as
MSME under revised definition, must be obtained and updated in Finacle system at relevant fields.
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 In case account has been wrongly classified due to misrepresentation of facts. The benefits in pricing
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would be withdrawn from the retrospective date. Accordingly it should be stipulated in the sanction letter.
 Segment classification of the borrower (Micro/Small/Medium) will be as per the classification
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mentioned in Udyam Registration Certificate.

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 The activity of the borrower mentioned in Udyam Registration Certificate (National Industry Classification
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Code) and the activity for which the loan is sought must be the same.
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 The activity (purpose of advance) in Finacle system shall match with the activity of the borrower
mentioned on Udyam Registration certificate (NIC Code).
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 Detailed guidelines are enclosed regarding Udyam Registration portal (Annexure_1) and branches are
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requested to guide the borrowers for registration on the portal.

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 Any request for change in category, due to revised definition, (i.e.) Medium or Small, Micro or vice versa
shall be backed by Udyam Registration Certificate.
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 However when the MSME ROI is being extended in accounts where already concessions are
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extended it has to be ensured that the guidelines provided in our circular no BCC/BR/112/663 dt
10.12.2019 are scrupulously followed.
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 Becoming a micro, small or medium enterprise::

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(1) Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online
in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers,

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certificates or proof.
(2) On registration, an enterprise (referred to as -Udyami in the Udyam Registration portal) will be assigned a
permanent identity number to be known as -Udyam Registration Number.

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(3) An e-certificate, namely, -Udyam Registration Certificate shall be issued on completion of the registration
process.

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Composite criteria of investment and turnover for classification::

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(1) A composite criteria of investment and turnover shall apply for classification of an enterprise as micro, small or

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medium.

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(2) lf an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of

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investment or turnover, it will cease to exist in that category and be placed in the next higher category but no

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enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present

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category in both the criteria of investment as well as turnover.

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(3) All units with Goods and services Tax identification Number (GSTIN) listed against the same Permanent
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Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for
all of such entities shall be seen together and only the aggregate values will be considered for deciding the
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category as micro, small or medium enterprise.
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Calculation of investment in plant and machinery or equipment::

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(1) The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return
(ITR) of the previous years filed under the Income Tax Act, 1961
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(2) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration
of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which
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it files its first ITR.

(3) The expression -plant and machinery or equipment of the enterprise, shall have the same meaning as
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assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and
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shall include all tangible assets (other than land and building, furniture and fittings).
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(4) The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or
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second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure
basis, if the enterprise is a new one without any ITR.
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(5) The cost of certain items specified in the Explanation / to sub-section (1) of section 7 of the Act shall be
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excluded from the calculation of the amount of investment in plant and machinery.
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Calculation of turnover::
(1) Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise
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whether micro, small or medium, for the purposes of classification.

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(2) information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act
or the central Goods and Services Act (CGST Act) and the GSTIN.
(3) The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration
basis for a period up to 31st March,2021 and thereafter, PAN and GSTIN shall be mandatory.
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 Registration process::
(1) The form for registration shall be as provided in the Udyam Registration portal.

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(2) There will be no fee for filing Udyam Registration.

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(3) Aadhar number shall be required for Udyam Registration.
(4) The Aadhar 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).

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(5) In case of a company or a Limited Liability partnership 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.

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(6) In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous

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years when it did not have PAN shall be filled up on self-declaration basis.
(7) No enterprise shall file more than one Udyam Registration: provided that any number of activities including

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manufacturing or service or both may be specified or added in one Udyam Registration.

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(8) Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in

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the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the

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Act.

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Registration of existing enterprises::

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(1)All existing enterprises registered under EM-part-II or UAM shall register again on the Udyam Registration
portal on or after the 1st day of July, 2020.
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(2) All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
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(3) The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to
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the 31stday of March, 2021.

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(4) An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium
Enterprises shall register itself under Udyam Registration.
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Updation of information and transition period in classification::

(1) An enterprise having Udyam Registration Number shall update its information online in the udyam
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Registration portal, including the details of the lTR and the GST Return for the previous financial year and such
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other additional information as may be required, on self-declaration basis.

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(2) Failure to update the relevant information within the period specified in the online Udyam Registration portal
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will render the enterprise liable for suspension of its status.

(3) Based on the information furnished or gathered from Government's sources including ITR or GST return, the
classification of the enterprise will be updated.
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(4) In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower
category) of an enterprise, a communication will be sent to the enterprise about the change in the status.
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5) In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both,
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and consequent re-classification, an enterprise will maintain its prevailing status till expiry of one year from the
close of the year of registration.
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(6) In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual

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changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is
registered under the Act or not, the enterprise will continue in its present category till the closure of the financial
year and it will be given the benefit of the changed status only with effect from 1st April of the financial year
following the year in which such change took place.
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 Documents to be relied upon for classification of MSME:
In view of the above, instructions contained in circular FIDD.MSME & NFS.BC. No.10/06.02.31/2017-18 dated

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July 13, 2017 on “investment in plant and machinery for the purpose of classification as Micro, Small and Medium
Enterprises _ documents to be relied upon” are superseded.

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Facilitation and grievance redressal of enterprises:

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The Champions Control Rooms functioning in various institutions and offices of the Ministry of Micro, Small and

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Medium Enterprises including the Development Institutes (MSME-Dl) shall act as Single Window Systems for

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facilitating the registration process and further handholding the micro, small and medium enterprises in all
possible manner.

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The District Industries Centres (DlCs) will also act as Single Window facilitation Systems in their Districts.

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Any person who is not able to file the Udyam Registration for any reason including for lack of Aadhar number,

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may approach any of the above Single window Systems for Udyam Registration purposes with his Aadhar
enrolment identity slip or copy of Aadhar enrolment request or bank photo pass book or voter identity card or

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passport or driving licence and the single window systems will facilitate the process including getting an Aadhar

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number and thereafter in the further process of Udyam Registration.

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In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned

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District shall undertake an enquiry for verification of the details of Udyam Registration submitted by the enterprise

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and thereafter forward the matter with necessary remarks to the Director or commissioner or Industry secretary
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concerned of the state Government who after issuing a notice to the enterprise and after giving an opportunity to
present its case and based on the findings, may amend the details or recommend to the Ministry of Micro, Small
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or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate.
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With the implementation of new definition different scenarios may arise where the branches have to take
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a decision with regard to passing of benefits of Regulatory MSME to reclassified accounts:

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Accordingly the following action points are now advised for different scenarios. The Account should have been
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duly registered on the Udyam Registration portal and a certificate to that effect shall be produced to the branch.
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SCENARIO GUIDELINES
Conversion in ROI to EBLR for units which are MSME Udyam Registration Certificate must be obtained from
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as per revised definition but were Non the borrower and entered in Finacle at UPDUAN menu.
Regulatory/Corporate earlier.
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External Benchmark based ROI may be extended to

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these units from the date of renewal of the facility for

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working capital facilities without any charges.

However conversion in respect of working capital

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accounts before due date of review and Term Loans to

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the revised ROI as per the MSME definition, Rs.25O0

per account shall be charged as per existing
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guidelines.
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Extension of benefits in ROI to existing units which Udyam Registration Certificate must be obtained from
have moved to lower/ higher segment due to revised the borrower and entered in Finacle at UPDUAN menu.
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definition (e.g.) Medium <-> Small <-> Micro.

Accounts already under EBLR (BRLLR):
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The revised ROI shall be extended from the date of

renewal of the facility for both working capital and term
loan facilities.

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 For conversion before due date of review conversion
fee of Rs.2500 per account shall be charged as per
existing guidelines in case of working capital accounts.

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For conversion of term loans conversion fee of Rs.2500

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per account shall be charged as per existing guidelines
irrespective of the date of review.

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Accounts not under EBLR (BRLLR) Working

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Capital:

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BRLLR based ROI shall be extended from the date of

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renewal of the facility without any charges.

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Working Capital: For conversion before due date of

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review conversion fee of Rs.2500 per account shall be
charged as per existing guidelines.

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Term Loan: For conversion of term loans conversion

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fee of RS.25OO per account shall be charged as per

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existing guidelines irrespective of the date of review.
MSME Accounts (as per old definition) getting The existing ROI structure shall continue till 31.03.2021
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classified as Non MSME due to introduction of Turn as the units can retain their current classification till
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Over criteria in the revised definition. 31.03.2021. Beyond which the pricing will be based on
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registration on Udyam Portal.

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External Benchmark based Lending Rate (BRLLR):

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Regulatory MSME - Waiver of administrative charges of Rs.2500 for conversion to External Benchmark
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based Lending Rate (BRLLR) for loans with customer wise to Rs.10 Lakhs w.e.f.18.09.2020: (BCC/BR/112/544
dt. 18.09.2020)
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Refer to circular no BCC/BR/111/491 dt. 30.09.2019, BCC/BR/111/663 dt. 10.12.2019 and BCC/BR/112/185 dt.
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31.03.2020 wherein bank had advised the implementation of External Bench Mark based Rate of Interest
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(BRLLR) for Regulatory MSME segment.

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As per existing guidelines, for conversion of Rate of Interest to BRLLR at the time of review of working capital
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facilities such as OD/CC/PC/BD, no separate charges would be applicable. However, for conversion to BRLLR at
the instance of borrowers request before the review date the same will be allowed subject to recovery of
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Administrative charges of Rs. 2500 plus GST per account from the borrower. In case of Term Loans irrespective
of due date of review may continue till repayment and borrower could exercise an option to convert to BRLLR
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with an administrative charge of 2500+GST.

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Branch to endeavour for completion of conversion of all eligible MSME Accounts to BRLLR:
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Branches to ensure that all standard working capital accounts under MSE & Medium segments which were
sanctioned/renewed on or after 01.10.2019 and 01.04.2020 respectively shall be linked to BRLLR interest table
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codes.
Likewise all Regulatory MSME Term Loan accounts under MSE & Medium segments which were sanctioned on
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or after 01.10.2019 and 01.04.2020 respectively shall be linked to BRLLR immediately (Consent Not required).

Page | 9
 Likewise all Regulatory MSME standard Term Loan accounts under MSE & Medium segments which were
sanctioned prior to 01.10.2019 to 01 .04.2020 respectively shall be linked to BRLLR after getting the request of
the borrower in writing.

Y1
ANNEXURE – I

.(V
Process of Registration on Udyam Registration Portal

Y


D
The portal can be accessed at https://udyogaadhaar.gov.in/

ED
 An enterprise for the purpose of this process will be known as Udyami and its Registration Process will be
known as 'Udyam Registration'.

R
 Registration Process is free, fully online, and paperless and based on self-declaration.

R
 No documents or proof are required to be uploaded for registering an MSME.

A
 Only Aadhar Number will be enough for registration (To Log in to portal).

M
 The Aadhar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner

U
in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).

K
 In case of a Company or a Limited Liability partnership or a Cooperative Society or a Society or a Trust,

A
the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar

D
number.

N
PAN& GST linked details on investment and turnover of enterprises will be taken automatically from
A
Government data bases.
N

 Having PAN & GST number is mandatory from 01.04.2021.

A
K

 A permanent registration number will be given after registration.

VE

 After completion of the process of registration, a certificate will be issued online.

 This certificate will have a dynamic QR Code from which the web page on our portal and details about the
VI

enterprise can be accessed.

LA

 There will be no need for renewal of Registration.

 Single window systems at Champions Control Rooms and at DlCs will help the applicants in the process.
U


D

Those who have EM-II or UAM registration or any other registration issue by any authority under the
Ministry of MSME, will have to re-register themselves.
D


YE

No enterprise shall file more than one Udyam Registration. However, any number of activities including
manufacturing or service or both may be specified or added in one Registration.
 In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous
r.

years when it did not have PAN shall be filled up on self-declaration basis.
M

 No enterprise shall file more than one Udyam Registration: provided that any number of activities
y:

including manufacturing or service or both may be specified or added in one Udyam Registration.
B

 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
ed

27 of the Act.
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Page | 10
 1.1 Manufacturing Enterprise:

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is an enterprise engaged in manufacture/production or preservation of goods and whose investment in plant and
machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale

.(V
Industries) & Turnover does not exceed as mentioned in above table.

1.2 Service Sector Enterprises:

Y
D
 Service Sector Enterprise engaged in providing or rendering services whose investments in equipment

ED
(original cost excluding land & Building and Furniture, Fittings and other items not directly related to the
service rendered or as may be notified under MSMED Act, 2006 vide its notification No. S.O. 172 (E)

R
dated October5, 2006 (Reference BOI 2019)& Turnover are as detailed in above table. All Loans to KVI
sector will be covered under Micro enterprises.

R
A
 Service Enterprises will include Small Road & Water Transport operators, Small Business, Retail Trade,

M
Professional and Self-Employed persons and all other Service Enterprises which satisfy the above
criteria. (Ref: - Master Circular – MSME - BCC: BR: 108:422 dated 01.09.2016 BCC: BR: 109:452 dated

U
01.09.20171).

K
A
 To further elaborate any loan given for income generating purpose under Manufacturing, Services &

D
Retail Trade segments and satisfying the investment in plant & Machinery/Equipment criteria& Turnover
criteria as per Govt. of India vide Gazette notification S.O. 2119(E) dated 26.06.2020 are eligible for
classification under Regulatory MSME segment. N
A
N

1.3 Exceptions to this are Loans given for Agriculture & Agri Allied Activities:
A
K

Loans given to Agro & Food processing units where the borrower wise limit from entire banking system is up to
VE

Rs.100 Crores. Accordingly loans sanctioned for business purposes under Retail Lending Schemes are also
eligible for classification as Regulatory MSME under priority Sector subject to fulfilment of conditions of MSMED
VI

Act 2006. Please note that for internal performance evaluation purpose accounts opened under Retail Lending
Schemes will continue to be treated as Retail Lending.
LA

1.4 Retail Trade (Regulatory MSME under SERVICES segment):

U

The Definition of Retail Trader is that the trader must be selling the goods to the end user of the product. I.e.
D

Kirana Shop, Readymade cloth shop, Street side Vegetable Vendors. Wholesale Trader are not eligible for
D

Regulatory MSME Classification. The Definition of Wholesale Trader is that the trader must be selling the goods
YE

to the RETAILTRADERS and NOT to the end users of the product. (E.g.) Dealers of FMCG-Goods, Grain
Traders (Ref: BCC: BR: 111/72 dt.08.02.2019)
r.
M
y:
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1
Master Circular – MSME - BCC: BR: 108:422 dated 01.09.2016, BCC:BR:109:452 dated 01.09.2017
Page | 11
 Y1
.(V
Y
D
ED
R
R
A
SME exchange is a stock exchange dedicated for trading the shares of small and medium scale

M
enterprises (SMEs) who, otherwise, find it difficult to get listed in the main exchanges. The concept

U
K
originated from the difficulties faced by SMEs in gaining visibility or attracting sufficient trading

A
volumes when listed along with other stocks in the main exchanges. World over, trading platforms /

D
exchanges for the shares of SMEs are known by different names such as Alternate Investment markets

or growth enterprises market, SME Board etc. N

A
N
“SME exchange” is defined in Chapter XA of the Securities And Exchange Board Of India (Issue Of
A

Capital And Disclosure Requirements) Regulations as a trading platform of a recognized stock

K

exchange or a dedicated exchange permitted by SEBI to list the securities issued in accordance with
VE

Chapter XA of SEBI (ICDR) Regulations and this excludes the Main Board (which is in turn is defined as
VI

a recognized stock exchange having nationwide trading terminals, other than SME exchange).

To be listed on the SME exchange, the post-issue paid up capital of the company should not exceed Rs.
LA

25 Crores. This means that the SME exchange is not limited to the Small and Medium Scale enterprises
U

which are defined under the Micro, Small and Medium Enterprises Development Act, 2006 as
D

enterprises where the investment in plant and machinery does not exceed Rs. 10 crores. As of now, to
D

get listed in the main boards like, National Stock Exchange, the minimum paid up capital required is Rs.
YE

10 cr and that of Bombay Stock Exchange is Rs. 3 cr. Hence, those companies with paid up capital

between Rs. 10 cr to Rs. 25 cr has the option of migrating to the Main Board / or to SME exchange. The
r.
M

companies listed on the SME exchange are allowed to migrate to the Main Board as and when they

meet the listing requirements of the Main Board and there shall be compulsory migration of the SMEs
y:

from the SME exchange, in case the post issue paid up capital is likely to go beyond Rs 25 crore limit.
B
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Page | 12
 1.5 Regulatory MSME classification is based on the following two fields available in
Finacle as under-

Y1
1. "Sector Code” in MIS page under Account profile

.(V
2. “ Plant & Machinery” field in customer profile page under HBAIM Menu

Menu HACMLA/HACM/HACMBP/ACMPS:

Y
D
Others - Account Label- Blank or MSME

ED
MIS – Purpose of advance – Manufacturing, services or retail trade
MIS- Sector code- 40, 50,60,70,90,100,115,170,270 or 280

R
MIS- Free text code 14- Blank

R
Menu HBAIM::

A
Borrower’s additional information-modify-customer - General details tab- Investment in plant & machineries

M
/equipment.

U
K
Value Range in “Investment in Machinery” Sector Description Sector

A
field in HBAIM at Customer Level Code
Manufacturing – MICRO Enterprises 40

D
Does not exceed Rs. 1.00 crores
Does not exceed Rs. 10.00 crores Manufacturing – SMALL Enterprises 50
Does not exceed Rs. 50.00 crores N
Manufacturing– MEDIUM 170
A
Enterprises
N
A

Regulatory MSME – Services Activities including Retail Trade – Sector Code is based on investment in
K

Equipment
VE

Value Range in “Investment in Equipment” Sector Description Sector

field in HBAIM at Customer level Code
VI

Does not exceed Rs. 1.00 crores Services – MICRO Enterprises 90

Does not exceed Rs. 10.00 crores Services – SMALL Enterprises 100
LA

Does not exceed Rs. 50.00 crores Services – MEDIUM Enterprises 115
U
D

 For “Khadi, Village and Cottage Industry” and “Artisans and Handicrafts” the respective codes of 60 and
D

70 may be used and in HBAIM Investment in Machinery shall be filled in For “PMMY Micro Enterprises” ->
YE

Scheme Code (CC017, OD020, LA520)

 For “PMMY Small Enterprises” -> Scheme Code (CC018, OD021, LA521)
r.
M

(REFER CIRCULAR NO. BCC/BR/112/108 Dated 29.02.2020: Guidelines for updating MIS fields in case
y:

of MSME borrowers)
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Page | 13
 MSME Segment - Updation of Customer Information in Finacle: BCC/BR/112/236 dt 21.04.20

Y1
The following parameters in respect of MSME customers shall mandatorily be updated in the Finacle system
without fail.

.(V
1. Mobile Number 2. Email ID 3. Udyog Aadhaar 4. GST Number 5. PAN Number

Y
It has to be ensured that the above said data are updated in current account holders profile also as they are our

D
prospective MSME borrowers and we are required to get connected to these customers for future business

ED
growth.

R
2. Our Bank’s approach - MSME sector

R
A
M
Our Bank considering vital role being played by such organizations in Economic development of the Nation and

U
in order to capture the business, has expanded the coverage of MSMEs well beyond the Regulatory definition as
under:

K
A
Our bank has therefore for internal purposes given focused attention to finance all Commercial enterprises i.e.

D
enterprises which may be outside the purview of regulatory definition (Regulatory definition as per latest
N
guidelines issued by Govt. of India vide Gazette notification S.O. 2119(E) dated 26.06.2020 and the revised
A
definition is effective from 1st day of July 2020. Further RBI vide their circular no RBI/2020-2021/10 FIDD.MSME
& NFS.Bc.No.3/06.02.31/2020-21 July 2, 2020) of MSME as under vide BCC BR 110 290 dated 11.06.182:
N
A

The New/Extended definition will only be used internally for promotion of business across these segments. All
K

the proposals falling beyond the ambit of regulatory definition shall be covered by the Loan Policy Document and
VE

will attract all provisions of C&I sector, if not specified otherwise.

However, such Units, which are outside the purview of regulatory definition will not form part of Priority Sector
lending.
VI

SME Expanded/Non-Regulatory is classified based on the following field in Finacle as under-

LA

1. "Sector Code" in MIS page under Account profile.

U

2. "Balance Sheet and Turnover” field in customer details page under HBAIM menu.
D
D

Menu HACMLA/HACM/HACMBP/ACMPS
YE

Others - Account Label- Blank or MSME

MIS – Purpose of advance – Any income generating activity
MIS- Sector code- 180 or 200
r.

MIS- Free text code 14- 100

M

Menu HBAIM - Borrower’s additional information-modify-customer-General details tab- Investment in plant

y:

&machineries / Equipment (Mfg.& Services)- if more than Rs. 50.00 Cr. Turnover –up to Rs. 250 Cr.
B
ed
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2
MSME regulatory definition modified vide BCC BR 110 290 dated 11.06.18
Page | 14
 3. Our Bank’s Internal Guidelines for MSME

Y1
3.1 Assessment of Working Capital

.(V
As per our Bank’s Global Credit Exposure Management Policy, 2019-20 following methods are adopted for
working capital limit assessment:

Y
D
Borrower Type Method of lending for fund based working capital

ED
requirement
Micro & Small Enterprises working
Higher of First Method (or) Turnover Method (Min 25%)#

R
capital requirement Up to Rs. 5/- Crore
Micro & Small Enterprises working
Higher of First Method (or) Turnover Method (Min 20%)

R
capital requirement Above Rs. 5/- Crore

A
Medium Enterprises Higher of First Method (or) Turnover Method (Min 20%)

M
All other borrowers requiring working
Second Method
capital finance up to Rs. 10/- Crore

U
All other borrowers requiring working
Cash Budgeting Method%

K
capital finance above Rs. 10/- Crore

A
#
In case digital sales turnover exceeds 25% of total/assessed turnover, additional 5% of the digital

D
sales turnover will be added to the total assessment of working capital i.e. 30% of turnover of digital
sales and 25% of non-digital sales added together will be the working capital limit.
N
A
%
If cash flow projections etc. are not available then the Second Method may be applied after
N

satisfying that working capital requirements are based on operating cycle.

A
K

3.2 MARGIN:
VE

Facility Type of security Minimum Margin

VI

Term Loan
Factory Land & Building 30%
LA

Plant, Machinery, Equipment 25%

Second hand imported machinery 40%
U
D

Working Capital
D

Stocks & Receivables 25%

YE

Export Credit Pre- Shipment 10%

Post Shipment Nil
r.

Extra due diligence/ discrete inquiry to be made in case of old machineries and proper valuation of old
M

machineries to be obtained for ensuring compliance in respect of margin requirement.

y:

The next higher authority is authorized to reduce margin maximum by 5 percentage points in deserving cases in
B

respect of all the above types of securities. If reduction in margin is proposed beyond 5 percentage points but up
ed

to a maximum of 10 percentage points, Executive Director or Managing Director & CEO is authorized to consider
it on merit.
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(Reference: Global Credit Exposure Policy 2019-20 Pg. 53 of 110)

Page | 15
 3.3 Rate of interest:

Y1
If accounts are falling under SME category as per, regulatory definition, rates as applicable to Micro, Small &

.(V
Medium Enterprises to be applied. However, if Accounts are falling under SME category based on expanded
coverage i.e. they are outside the purview of regulatory definition, interest to be applied as per separate
guidelines being issued from time to time.

Y
D
 Refer circular no BCC:BR:111:490 dated 27.09.2019 , BCC/BR/111/491 dt 30.09.2019, BCC/BR/111/663

ED
dt 10.12.2019 and BCC/BR/112/185 dt 31.03.2020 wherein bank had advised the implementation of
External Bench Mark based Rate of Interest (BRLLR) for Regulatory MSME segment.

R
 Branch to endeavour for completion of conversion of all eligible MSME Accounts to BRLLR:

R
 Branches to ensure that all standard working capital accounts under MSE & Medium segments which

A
were sanctioned/renewed on or after 01.10.2019 and 01.04.2020 respectively shall be linked to BRLLR

M
interest table codes.

U
 Likewise all Regulatory MSME Term Loan accounts under MSE & Medium segments which were

K
sanctioned on or after 01.10.2019 and 01.04.2020 respectively shall be linked to BRLLR immediately
(Consent Not required).

A
D
 Likewise all Regulatory MSME standard Term Loan accounts under MSE & Medium segments which
N
were sanctioned prior to 01.10.2019 to 01 .04.2020 respectively shall be linked to BRLLR after getting
the request of the borrower in writing.
A
N

Ref: Circular on latest ROI: MSME (Regulatory & Non-Regulatory/Expanded): BCC:BR:112:453 dt

A

31.07.2020
K
VE

 Rate of Interest for Non-Regulatory / Expanded shall continue to be linked with MCLR.
VI

 For Limits upto Rs 25 lacs, related to (Regulatory), the rate of interest is based on limits slab and the
segmentation (Micro, Small, and Medium).
LA

For Limits up to Rs 25 lacs, related to (Expanded – Non Regulatory), the rate of interest is fixed
U

(MCLR+SP+2.75%) for the time being.

D

 For Limits above Rs 25 lacs to Rs 5 crores (Regulatory) rate of interest is based on CIBIL CMR Ranking
D

and Eligible immovable security coverage after haircut and the segmentation (Micro, Small, and Medium).
YE

 For Limits related to (Non Regulatory MSME / SME Expanded) the rate of interest is based on CIBIL CMR
r.

Ranking and Eligible immovable security coverage after haircut.

M

 NOTE: In case of Non-Regulatory borrowers:

y:

A) An additional 1.00 % spread has to be charged for the borrowers under Non Regulatory segment
B
ed

(i) whose exposure is RS.1OO Cr or more from the Banking system and are externally unrated or rated worse
than BBB AND
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(ii) exposure with us is greater than Rs.5 Cr or turn over greater than Rs.25 Cr

B) However where the borrower’s total exposure from banking system is less than Rs.1O0 Cr and exposure with us
is more than Rs. 5.00 Cr, or turn over more than Rs.25 Cr additional interest as above is not applicable.
Page | 16
 To align the rate of interest of SME segment with hard security and CMR rating of borrower, to keep up with
market completion, is has been proposed vide circular no BCC BR 110/304 dated 11.06.2018 3to rationalize

Y1
the spreads on ROI aligned with only hard security for loans above Rs.25.00 Lakh to Rs.5.00Crores (FB & NFB).
The circular gives entire matrix of combination of CMR rating of borrower, type of borrower, MSME Expanded

.(V
and hard security offered and resultant ROI. For MSME accounts other than those falling in above criterion (Rs
25 Lakh and above uptoRs. 5 Crore) would continue to be priced as per their CMR Rating.

Y
D
(Ref:-BCC/BR/112/185 dated 31-03-2020)

ED
R
R
A
M
U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
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M
y:
B
ed
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3
BCC BR 110/304 dated 11.06.2018New approach to pricing based on CMR & security
Page | 17
 Y1
.(V
Y
D
ED
R
R
A
M
U
K
A
D
N
A
N
A
K
VE
VI
LA
U

Exposure in CMR 7 & below ranked accounts:: No fresh exposure through enhancement or new account to be taken in
D

CMR 7 & below ranked accounts. (BCC/BR/112/557 dated 22.09.2020)

D
YE

Some Important Points (BCC/BR/113/160 Date: 30.03.2021)

r.

1) The facilities under BCECL & BGECL are sanctioned as a part of COVID Regulatory Package and have specific rate of
M

interest which are not linked to CMR Rank. Considering this, the credit exposure under both the schemes should not be
considered for arriving at pricing linked to CMR Rank.
y:

2) For exposure above Rs. 5 crores under Regulatory MSME segment: As per the existing guidelines, differential pricing
B

is charged to Micro, Small & Medium category. However, the same is now discontinued and uniform pricing is introduced for
Micro, Small and Medium category borrowers under Regulatory MSME segment.
ed

3) Exporter Gold card Holders are eligible for further concession of 0.25% in the interest rate as per the gold card scheme.
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4) Products & Area Specific Schemes In case any MSME Product/Scheme is having a fixed credit risk margin over MCLR
i.e. not linked to CMR or BOBRAM rating, MCLR will be replaced with BRLLR for Regulatory MSME segment.

Page | 18
 Y1
3.4 Penal Interest

.(V
The Bank may apply penal interest of minimum 2% p.a. each, for delay in submission of financial statement,
stock statements, creation of security, quarterly information, overdue, breach of stipulated covenants etc. without
any explicit approval / concurrence of appropriate authority. Penal interest would be exclusive of the existing

Y
pricing of the asset and additional to any other charge for excess ad -hoc limits.

D
ED
Penal Interest should be charged to deter the borrower from non- compliance of any term and condition including
default of repayment of interest / instalment. Penal Interest / Additional interest will be charged on the overdue
amount @ 2% per annum to the term loan / working capital limit accounts defaulting instalment / interest

R
repayment in respect of loans and advances other than Priority Sector loans up to Rs. 25,000/-, Loans

R
sanctioned under Government Sponsored Schemes and Retail advances.

A
In respect of Priority sector loans up to Rs. 25,000/-, ECNOS no penal interest is applicable. ECNOS means

M
Export Credit Not Otherwise Specified in the interest rate structure which banks are free to decide the rate of

U
interest keeping in view the MCLR / Base Rate / BPLR spread guidelines.

K
In respect of Loans sanctioned under Government Sponsored Schemes, and Retail Loans, penal interest @ 2%

A
per annum will be applicable on OVERDUE portion only and not on the entire outstanding amount.

D
N
The Bank shall charge overall penal and additional interest up to 2% p.a. over the applicable/regular interest rate.
A
N
Waiver/ relaxation of penal interest for non-compliance of terms and conditions other than default of Interest /
instalment payments, Zonal head and other executive not below the rank of GMs are authorised to waive / relax
A

levy of penal / additional interest on case to case basis strictly on merits.

K
VE

(Reference: Global Credit Exposure Management Policy Page 83/84 of 110)

VI

3.5 Collateral Free Loans

LA

As per Master circular on MSME (Ref:-BCC:BR:109:452 dated 01.09.2017)4, Branches are mandated not to
accept collateral security in the case of loans up to Rs.10.00 lakh extended to units in the MSE sector including
U

loans to units financed under the PMEGP administered by KVIC up to Rs.10.00 lakhs.
D
D

Further, Collateral free loans may be extended (including third party guarantee/ security) up to a limit of Rs. 25.00
lacs to units under MSME and having satisfactory dealings with the branch for last 3 years and having sound and
YE

healthy financial position.(Ref:- BCC:BR:110/144 dt.22.03.2018)

r.

Branches has been advised to avail of the CGTMSE in all the applicable cases without any omission. In case the
M

sanctioning authority is not in favour of considering the collateral free loan under CGTMSE scheme, permission
from the next higher authority should be obtained.
y:

Bank‘s guidelines for providing collateral free loans (As per erstwhile Loan Policy-2014) are reproduced as under:
B

 Collateral free loan up to Rs.10.00 Lakh to Micro & Small Enterprises.

 Collateral free loans (including third party guarantee/ security) up to a limit of Rs. 25.00 Lakh to units
ed

having satisfactory dealings with the branch for last 3 years and having sound and healthy financial
ad

position.

BCC:BR:109:452 dated 01.09.2017 MSME circular

4
Page | 19
  It is already decided to dispense with collateral security including third party guarantee for loans to
Medium Enterprises up to a limit of Rs. 25.00 Lakh as in case of loans to Micro & Small Enterprises in

Y1
manufacturing activities subject to satisfying the following criteria in case of existing borrower as also
takeover accounts:


.(V
Consistent growth in sales for last 3 years.
 Continuous profit for last 3 years.
 Credit rating of ―A or equivalent and above and no slippage in credit rating during last 3 years.
 The units‘ assets (fixed as also current) are charged to the bank and promoters / directors personal

Y
D
guarantee are available
 Asset coverage ratio of more than 1.5

ED
 Other take-over norms are complied with.

R
For the existing borrowers enjoying limits up to Rs.25.00 lacs and fulfilling the above criteria, the release of
collateral securities obtained if any, at the time of previous sanction / review, is can also to be released at the

R
specific request of the borrower by PSR noting authority.

A
M
3.6 Credit Linked Capital Subsidy Scheme (CLSS):

U
K
Government of India, Ministry of MSME has approved continuation of CLSS for Technology Up gradation of

A
Micro and Small Enterprises from X Plan to XI Plan (2007-12) subject to the following terms and conditions:
 Ceiling on the loan under the scheme is Rs.1 Crore.

D
 The rate of subsidy is 15% for all units of MSE up to loan ceiling of Rs.1 crore
N
 Calculation of admissible subsidy will be done with reference to the purchase price of the plant and
A
machinery instead of term loan disbursed to the beneficiary unit.
N

 SIDBI and NABARD will continue to be implementing agencies for the scheme.
A

 Enterprises should mandatorily submit the information with www.msmedatabank.in before the claim is
K

lodged by the Bank.

VE

(Circulars for reference: BCC:BR:106:200 dt.30.05.2014 5; BCC:BR:108:423 DT.14.09.20166)

Revised guidelines for subsidy are produced as under:

VI

Term Deposit Receipt after receiving the subsidy by the Branches should be made for the duration of three years
LA

from the date of approval of subsidy by PLI/Banks and if there is any delay in release of subsidy by the Ministry of
MSME, the three years' time duration should be taken from the date of commercial production by the unit after
U

purchasing the approved machineries. Hence in such cases the FDR is to be prepared with maturity falling on 3
D

years from the date of commercial production.

D

In cases where there is conversion of term Loans into Foreign Currency Term loans, the subsidy cannot be
converted into foreign currency and it should be kept in the form of TDR in rupee denomination only. This should
YE

be noted that as per the CLCSS guideline eligible criteria, capital subsidy @15% of the eligible investment in
plant and machineries under the scheme shall be available only for such projects, where term loans have been
r.

sanctioned by the eligible PLl.

M

(Reference: BCC; BR: 111/75 dt.04.04.2019 Circular)

y:

The Scheme was put on hold by the Central Government, however now it has been released for the period 2017-
18 to 2019-20 in a phased manner. (Ref: BCC: BR: 111:539 dated 14.10.2019)
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ed
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5
BCC:BR:106:200 dt.30.05.2014 CLSS circular
66
; BCC:BR:108:423 DT.14.09.2016 CLSS circular
BCC;BR:111/75 dt.04.04.2019 Circular
Page | 20
 3.7 Review with limits up to Rs. 25/- lacs pending receipt of audited financial
statements

Y1
Branches have been authorized to review advance accounts of borrowers in trading activities, Micro & Small

.(V
Enterprises, borrowers in rural area, borrowers having only term loan accounts, financed under government
sponsored programme, borrowers enjoying only guarantee facility, etc., with limits up to Rs. 25/- lacs pending
receipt of audited financial statements provided the conduct of the account is satisfactory in terms of various

Y
parameters:-

D
ED
1) Satisfactory conduct and turnover in the account
2) Fulfilment of repayment obligations (Interest/ Instalments)

R
3) Adequacy of securities, drawing power, insurance coverage etc.
4) Rectification of inspection irregularities (other than non-submission of financial statements)

R
5) Compliance of all terms and conditions of previous sanction.

A
6) Satisfactory trend in production and /or Sales as per projections

M
7) Documentations and mortgages in the account being complete, valid and enforceable
8) Prompt payment of bills under LCs, realization of BP/BDs, Guarantee Commission etc.

U
9) Submission of Income Tax / Sales Tax returns filed with Statutory Authority as per time schedule

K
prescribed, wherever applicable (which will also indicate about the sales and profitability of the

A
operations).

D
3.8 New Originations-Priorities & Approval N
A
N

In addition to laying stress in meeting specific commitments in terms of RBI and Government of India directives,
A

the focus areas and target markets for the domestic operations of the Bank will be:
K

 Micro, Small and Medium Enterprises (MSMEs): Likely to grow faster in view of high priority being
VE

accorded to this segment by the Government.

 Retail Finance: To grow further with specific thrust on housing loans.
VI

Looking into the market dynamics and the economic scenario, all the sectors / industries will be categorized in
LA

terms of their future outlook: positive, neutral or negative. The Bank takes into account Industrial Risk Scores
provided by various agencies, demand-supply situation for the products, government policies etc. for this
purpose. The Bank’s target segment/sector approach for different sectors / industries based on their respective
U

outlooks, will be as under:

D
D

 Positive outlook sectors / industries –Will be the primary target sector.

YE

 Neutral outlook sectors – Exposure will be moderate

 Negative outlook sectors – Exposure will be limited to the borrowers with external rating of ‘A’ and above
for exposures of above Rs. 50 crore. For food & agro processing units qualifying for priority sector
r.

classification, the sector outlook and rating criteria will not be applicable.
M

ZOCC-(GM-CC) can approve the proposals falling otherwise within the DLP of upto ZOCC where the industry is
y:

having negative outlook but not meeting the rating criteria.

B

COCC ED can approve proposals falling otherwise within the DLP of ZOCC (GM-CC), COCC (GM- CC) & COCC
ed

ED. CACB & MCB can approve all other proposals.

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Risk Management Department will provide sectoral outlook along with advisory on a monthly basis. The target
market approach, as per the template that has been developed for this purpose, will be prepared at the beginning
of every financial year by respective credit verticals and it will be reviewed once in every quarter. The annual

Page | 21
 target market approach and quarterly review thereof will be put up to the Credit Policy Committee and the Risk
Management Committee of the Board for approval.

Y1
(Reference: Global Credit Exposure Management Policy Page 17 of 110)

.(V
3.9 Financial Ratios for Credit Appraisal
(Not Applicable in case of takeover of accounts)

Y
D
Following ratios can be accepted for granting credit facilities to SME units failing as per regulatory guidelines or

ED
SME as per expanded coverage.
Ratio Norms

R
Micro & Small Enterprises Medium Enterprises Units covered under
under manufacturing under manufacturing SME Sector as per

R
sector and Service Sector sector and Service expanded definition

A
falling under regulatory Sector and outside the

M
guidelines falling under purview of regulatory

U
regulatory guidelines definition
Current Ratio (Min.) 1.17 1.20 1.33

K
(1.10 for EOU)

A
DER (Max.)(TTL/ATNW *) 3:1 3:1 3:1

D
DER (Max.) 4.5:1 4.5:1 4.5:1
(TOL/ATNW) N
A
FACR (Net FA/ LTL) Not below 1.25 Not below 1.25 Not below 1.25
N

Average DSCR for Term 1.75 with a condition that in 1.75 with a condition 1.75 with a condition
A

Loan any one year it should not that in any one year it that in any one year it
K

be below 1.00 instead of should not be below should not be below

1.25 as per extant 1.25 1.25
VE

guidelines.
VI

* ATNW = Adjusted Tangible Net Worth = Net Worth net of investment in associate/sister concerns.
ATNW =Adjusted TNW , adjusted to investment in/loans & advances to group companies
LA
U

(Refer BCC/BR/122/39 dated 24/01/2020)

D
D
YE
r.
M
y:
B
ed
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Page | 22
 ad
ed
B
y:
M
r.
YE
D
D
U
LA
VI
VE
K
A
N
A
N
D
A
K
U
M
A
R
R
ED

Page | 23
D
Y
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 Y1
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Y
D
ED
R
R
A
M
U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.

(The above table is indicative for more detail Please refer BCC/BR/122/39 dated 24/01/2020)
M
y:
B
ed
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Page | 24
 3.10 Takeover of advance accounts
Following takeover guidelines are stipulated in Global Credit Exposure Management Policy, 2019-20:

Y1
 The specific reasons for shifting the account from Financial Institution / other bank to the Bank should be

.(V
ascertained.
 Accounts of profit-making (i.e. net profit before tax) concerns as per last two audited balance sheets

Y
should only be considered

D
 Accounts with existing lenders should be under the category of “Standard Assets” and should not have

ED
been classified under SMA-1 / SMA-2 during the last one year as per the latest CRILC report.
 Before taking over, Bank should obtain necessary credit information from the transferor bank as per the

R
format prescribed on “Lending under Consortium Arrangement/Multiple Banking Arrangements” and / or

R
Latest statement of account of the existing banks for preceding 6 - 12 months is to be obtained and
verified to assess the quality of operations with the existing bankers.

A


M
Besides obtaining Credit Report from the existing lenders, Branches to make discrete inquiries with
people in the similar line of activity / buyers / suppliers and their view about the prospective borrower's

U
credentials, financial soundness, integrity, reputation and capability (amount proposed to be taken over)

K
must be obtained. A confirmation to this effect must form a part of comments in the takeover proposals.

A
 As a general policy, takeover should be at the existing exposure level only. However, the additional

D
exposure at the time of takeover can be considered on merit of case.

N
External Rating in respect of credit proposal with exposure above Rs.50 Crores by an approved credit
A
rating agencies should not be below BBB & equivalent.
N

 The concessionary facilities to “Taken over Accounts” should be extended only in extremely deserving
A

cases with specific reasons recorded in writing. (MoF Directives).

K


VE

There should be tangible security available to cover the advances to be taken over and the underlying
assets should be distinctly identifiable.
VI

 Securities to be revalued at the time of takeover of account as per the extant guidelines For Term Loan /
Project Finance, the project should not be in the implementation phase at the time of takeover of the loan.
LA

In other words, it should have commenced commercial production.

 The remaining repayment period shall not be extended beyond the original repayment period permitted by
U

the erstwhile lender, as it amount to restructuring of account. However, this provision will not be
D

applicable in respect of refinance of loans as allowed by the RBI

D
YE

 Take-over accounts are to be rated as under:-

 As per the BOBRAM credit rating model, minimum “BOB6” obligor rating grade for all exposures of
Rs. 25 lac and above, other than MSME exposures. For MSME exposures, this rating model is
r.

applicable for accounts having exposure of above Rs. 2 Crore.

M

 As per MSME Credit Rating Model for MSME accounts of exposure Rs.2 lac and above up to Rs.
2.00 crore subject to minimum “MSMEBOB6” rating.
y:
B

 There should not have been any reschedulement / restructuring in the account during last two years.
 No credit facility should be taken over by the Bank from any other bank where any of the Bank's Executive
ed

Director or Managing Director & CEO worked earlier. In case any such account is proposed to be taken
over, the proposal will required to be put up to the Management Committee of the Board (MCB)with specific
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reasons justifying the need for taking over the account and put up to the Board for noting.(
BCC/BR/112/337 dt 06.06.20)

Page | 25
 Permitted Deviations:

Y1
 Deviations may be permitted in above-mentioned items by the authorities as under:-
 Next higher authority upto COCC – (GM-CC).

.(V
 Full power for COCC-ED and above.
 Sanctioning authorities / competent authority from ZOCC- GM and above (ZOCC- GM, ZOCC- GMCC,

Y
COCC- GM CC, COCC-ED, CACB & MCB) will have the discretion to allow departures from them on a

D
case-to-case basis, depending upon the industry specific, borrower specific situations and with cogent

ED
reasons / justification, recorded in writing, from the point of view of business opportunity, credit risk and
return.

R
 Proposals not meeting the acceptable level mentioned above and otherwise falling within the DLP upto

R
RMCC will be considered by next sanctioning authority. This will also be applicable in respect of takeover
of funded and non-funded borrowal accounts from other banks/FIs. Further, where any departure from the

A
indicative benchmark would entail higher credit risk, the same should be reflected in the price.

M
 For products/schemes approved by PPAC, such as Supply Chain Finance, commercial vehicle finance,

U
construction equipment finance etc. and credit facilities to NBFC, ship-building, real estate etc. the

K
approved product / scheme-specific guidelines will be applicable in respect of their indicative benchmark

A
financial ratios. In case of review / review with decrease, respective sanctioning authorities can consider

D
the proposals within their DLP subject to incorporating cogent reasons / justifications for the departure
from the aforementioned ratios.
N
A
 Based on the local industrial / economic scenario, overseas territories may stipulate indicative benchmark
N
financial ratios, as above, in their territory-specific loan policies.
A

 An upfront fee @ 0.25% is to be charged in respect of all takeover proposals considered with deviations in
K

the said benchmark ratios.

VE

Authority for takeover

VI

 Proposal for takeover under the powers of Chief Manager and above: -For proposals under the powers of
Chief Manager and above, no prior clearance from next higher authority is required for takeover.
LA

 Delegated authorities under bank’s discretionary lending powers may consider takeover cases within their
U

powers.
D

 Proposal for takeover under the powers of below Chief Manager: Prior approval of next higher authority
D

i.e. Regional Manager is required for takeover. After obtaining prior clearance as above, delegated
YE

authorities may consider the proposals as per their discretionary lending powers.
r.

3.11 Credit rating

M

Internal Credit Rating System:

y:

 The internal comprehensive credit rating system under BOBRAM (CRISIL) Model has been approved by
B

the bank and is already in place as advised to all branches. The Bank’s corporate portfolio comprising
ed

customers with aggregate credit exposure equal to or greater than Rs. 25 lakhs is rated under The
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BOBRAM model is applicable to MSME accounts having exposure of above Rs. 2 Crore.

 Bank has approved adoption of New Scoring Card type of Model for rating MSME accounts with exposure
of Rs.2.00 Lacs to Rs.2.00 Crore. (Excel Sheet) The Credit policy Committee (CPC) in its meeting held on
Page | 26
 dated 22nd March 2018 has directed that rating of MSME borrowers under the said model should be
validated by an Independent Officer at Regional Office. The paper based scored card has been converted

Y1
into excel file format wherein at level -1 appraising officer will initiate the rating and the same (along with

.(V
documents soft copy/hard copy) will be sent to level-2 (Regional Risk officer) for validation purpose
regional Risk officer will send the validated file to the branch under copy to Risk Management Department

Y
at BCC at email id teambobram.bcc@bankofbaroda.co.in. (BCC BR 110: 194 dated 17.04.20187.)

D
ED
As per extant guidelines, periodicity of credit rating in respect of borrowal accounts is on annual basis.
In case of adverse features in the account, the rating has to be reviewed immediately in all such accounts

R
with exposure (FB+NFB) of Rs.5 crores and above with internal rating of BOB 1 to BOB 4 falling under
SMA 1 category.

R
A
implementation of New CRISIL Rating Model "ICON" for Commercial Advances Customers enjoying

M
credit limits of Rs 200 lacs and above (FB+NFB): BCC:BR:112:534 DATED 05.09.2020

U
The existing rating system comprised 12 rating models which are extensively used in the credit decision making

K
and allows use of 2-dimensional models required for regulatory compliance i.e. computing the Obligor risk rating

A
(ORR) and Facility risk rating (FRR).

D
N
Now, M/s CRISIL has come up with new, upgraded and enhanced rating model namely 'BOBICON". Bank has
A
procured the new system and shall launch new application shortly. BOBICON, the New Risk Assessment
System, is agile, modular and flexible system allowing bank to perform internal credit rating for their borrowers.
N

The new system allows the flexibility of hosting multiple models for specific segments of the bank. ICON
A

facilitates credit risk appraisal of a borrower through a judicious mix of objective and subjective methodologies
K

and acts as a comprehensive database for borrower's rating information.

VE

For smooth launching the detailed process flow is explained in the Operating Guidelines which has been made
VI

available in the existing BOBRAM application homepage.

External Credit Rating System (not eligible under BASEL-II norms of capital adequacy)
LA

SME borrowers are rated by few external credit rating agencies. In case of MEs, some of the borrowers are
U

getting their accounts rated by external credit agency like CRISIL etc.
D
D

Our Bank has entered into MOU with credit rating agencies viz.: CRISIL, ICRA, CARE, and BRICKWORK INDIA
YE

to get our SME borrowers rated.

External Credit Rating System (under Basel-II norms of Capital Adequacy)

r.
M

External Credit Rating should be carried out in all SME loan accounts with credit limits of above Rs 5 crores by
any one of the RBI approved external credit rating agencies. Presently ICRA, CARE, CRISIL, India Rating and
y:

Research Pvt Ltd (100% own subsidiary of FITCH), SMERA, Infomerics and Brickworks India in respect of
domestic entities and Moody’s, Fitch and Standard & Poor’s in respect of non-Indian corporate borrowers are
B

overseas entities are the only Reserve Bank of India approved external credit rating agencies in India. The
ed

exposure to SME borrower rated by any of these rating agencies will be recognized as rated exposure for the
purpose of computation of Risk Weighted Assets under Standardized Approach of credit risk under Basel-II
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guidelines.

7
Modification in process of rating validation
Page | 27
 Pricing be continued to be linked to our internal credit rating system. However due weightage will be given for the
external credit rating by the external rating agency. Detailed guidelines on credit rating are covered under Loan
Policy.

Y1
Private Credit Rating for Corporate Credit Appraisals (Ref: -BCC: BR: 108:499 dated 21.10.20168)

.(V
The Rating Agencies have been divided into two Groups as under: -
Grou Rating Agencies Name Work Allocation Eligible Borrowers
p

Y
A External Rating M/s. India Ratings Pvt. 50% of the work Borrower's Annual

D
Agencies having Ltd. (H-1) Turnover is up to INR

ED
annual revenue up M/s. Brickwork Ratings 30% of the work 150 Crores and bank's
to INR 150 Crore India Pvt. Ltd. - (H-2) credit exposure is up to

R
M/s. SMERA Ratings 20% of the work INR 50 Crores
Limited – (H3)

R
B External Rating M/s. CARE Ltd 50% of the work Borrower's Annual

A
Agencies having M/s. ICRA Ltd 30% of the work Turnover above INR

M
annual Revenue M/s. CRISIL Ltd. 20% of the work 150 Crores or bank's

U
above INR 150 M/S INFOMERICS credit exposure above
Crores INR 50 Crores

K
A
We refer to the circular no. BCC/BR/110/590 dated 05/12/2018 in regard to the modification in Global Credit

D
Exposure Management Policy, wherein it was decided to exempt the Basel complied external rating for MSME
N
borrowers (including expanded definition) for exposure above Rs. 5.00 crore and up to Rs.50.00 crores, subject
A
to carrying out MSME rating from any of the Credit rating agency.
N

Eligibility of MSME borrower based of MSME Credit Rating/Grading (above Rs. 5'00 Crore and Up to Rs. 50
A

Crore):
K
VE

To capture quality MSME asset with exposure above Rs. 5.00 crores and up to Rs. 50.00 crores, the following
guidelines are to be followed:
VI

Type of cases SME Rating/ Sanctioning Deviation/ higher

LA

Grading to be authority sanctioning authority

considered eligible
Negative sector (as SME 1&2 As per DLP No deviation.
U

advised time to time) However in very deserving

D

cases, MCB may allow

D

deviations.
YE

Takeover SME 1&2 As per DLP COCC-ED may allow

deviation up to SME 3.
Enhancement of existing SME 1,2,3 and 4 As per DLP Next higher authority as
r.

fund based and non- Per DLP can sanction for

M

fund based facility or account having rating /

any new facility to new grading SME 5 only.
y:

enterprise (other than

B

negative sector)
(Reference: BCC: BR: 111:185 dt. 12.04.2019)
ed
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BCC: BR: 108:499 dated 21.10.2016External credit rating

8
Page | 28
 SME rating / grading has to be conducted in following cases:

Y1
New accounts: New to bank customers, Existing customer with request for any new limit & greenfield
projects


.(V
Review of accounts: Review with increase / reduction of limit / review at same level

SME rating / grading may be exempted for following cases:

Y
 Borrowers with already existing valid BASEL-ll complied external credit rating.

D
 SME rating/ grading stands exempted in Supply chain Finance accounts of spokes ( Dealer and Vendor

ED
Finance) with exposure above Rs 5 crores to Rs 50 crores in all cases i.e., Fresh , with Reduction or
enhancement , Review of accounts at same level / review with reduction of limit ( BCC:BR:111:521 dated

R
05.10.2019)

R
Note:

A
For borrowers with existing valid BASEL ll complied external credit rating as on the date of sanction/ review,

M
external credit rating should be initiated one month before the expiry date of existing the BASEL ll complied
external credit rating.

U
For all Greenfield projects, project report should be submitted to Bank (Ref: BCC: BR: 111/340 dt.19.07.2019)

K
A
In case of availability of multiple external credit ratings / grading by different Credit Rating Agencies, the

D
lowest of the all, will be considered for sanction. (Ref: BCC: BR: 111:686 dated 31.12.2019)
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
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Page | 29
 New lnternal Credit Rating Model - "BOBICON"

Y1
(BCC: BR: 113/73 dated 01/02/2021)

.(V
New CRISIL rating models for commercial advances customers christened as "BOBICON" has been launched on
05.11.2020. You may be aware that Bank is using lnternal Credit Rating model BOBRAM for corporate borrowers
provided by M/s CRISIL since 2006. Now, the Bank has come up with new, upgraded and enhanced rating model

Y
namely "BOBICON" to meet up the changing business requirements and dynamics.

D
ED
R
R
A
M
U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
ad

Page | 30
 Y1
3.12 COMMON GUIDELINES for MSME
 The simple standardized loan application form for borrowers in MSME Sector circulated by Indian Banks’

.(V
Association has been adopted for credit limits up to Rs.100 lakhs.
 Receipt and acknowledgement of application & Maintenance of Register for application received.

Y
 No application to be rejected without referring to next higher authority.

D


ED
Our Bank has introduced online application & “Loan Tracker Module” and Our Bank’s website provides
such facility to MSME customer through which the credit application submitted by MSME customers would
be reaching our Loan Track system and accordingly, application tracking facility is provided to the MSME

R
customers

R
 Time norms for disposal of loan application: As per Code of Bank’s Commitment to Micro and Small

A
Enterprises August 2015 (Para 5.1 j of BCC:BR:107:624 dated 16.12.2015)9 Disposal of application for a

M
credit limit or enhancement in existing credit limit up to Rs.5 lakh should be within two weeks provided
application is complete in all respects and is accompanied by documents as per ‘check list’ provided.

U
K


A
Time line as per as per for MSME Loans as per code of commitment to SME Global credit exposure
management policy:

D
Loan Limit up to Maximum disposal period on receipt of loan
N
applications complete in all the respects and
A
duly accompanied by a check list
N

Up toRs.5 lakhs One week

A

Above Rs. 5/- lacs and up to Rs.25.00 Lacs 10 working days

K

above Rs. 25/- lacs 15 working days

VE

At SMELF Within 14 days if no TEV required

21 days if TEV is required
VI

 Most important and common terms and conditions with respect to MSME (as advised by BCSBI) to be
LA

attached with all application forms. (BCC: BR: 108:456 dt.30.09.2016). 10

 Modification in the operations and administrative guidelines regarding procedure for submission of
U

proposals /processing of proposals by SME Loan factories had been amended vide BCC BR 110 167
D

dated 04.04.2018 11as under :

D

 Proposals falling beyond the powers of Head of SMELF/DRM/ RM will be submitted to sanctioned
YE

authorities as under :
 Proposals falling under the powers of Zonal Head – Directly to Zonal head with a copy to Regional
r.

Head
M

 Proposals falling under the powers of BCC- through Zonal head with a copy to Regional head.
y:

 In case of proposals falling under the powers of BCC, on receipt of copy of proposal, Zonal head,
should give his views in max 7 days. In case of information, it will be construed that he has nothing
B

adverse to report.
ed
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BCC:BR:107:624 dated 16.12.2015 – time frame of disposal of loan application

9
10
BCC:BR:108:456 dt.30.09.2016 BCSBI – MSE
11
BCC BR 110 167 dated 04.04.2018 Operations & administrative guidelines of MSME
Page | 31
  If any adverse features are observed by RM the same has to be informed to ZO within 4 days of
receipt of proposals at RO

Y1
 For proposals falling under powers of Zonal committee, the Regional Head should give his views
/comments within max period of 7 days. In case no information is received, it will be construed that he

.(V
has nothing adverse to report.

Reorganisation of Integrated SME Loan Factories to SME Branches, setting up of additional

Y
D
SMELFs and SME Cells at ROs:

ED
Reorganized the ISMELF structure as under:(BCC/BR/112/341 dt 10.06.2020)
(I) To roll out SME Branches in place of ISMELFs,

R
(II) New SMELFs at places having high potential for MSME loans in addition to the existing SMELFs, and

R
(III) to roll out MSME Cells at Regional Offices having no SMELFs,

A
M
(i) SME Branch:

U
K
It has been decided to open SME Branches at the centres where currently ISMELFs are existing and at other

A
potential centres.

D
Structure of SME Branches

N
These will be Specialised Branches carrying out all types of banking activities for SME customers only, to
A
cater to the needs of growing MSME Business. Required staffs for SME Branches should be chosen from
N

the ISMELF presently operating in that centre to take care of the existing MSME borrowers having
A

exposure more than Rs 5 crores, banking with different branches under the same RO and consenting to
K

transfer their account to the SME Branch.

VE

 Going forward, the SME Branches should preferably canvass MSME Business with ticket size of Rs 3 Cr
and above.
VI

 There will be separate Sales staff, RM (Relationship Mgr.) and Operations Staff at SME Branches. Apart
from business target for MSME loans no separate target for Retail and Agriculture Loans will be allocated
LA

to these branches.

U

Only deposits, retail credit and ancillary business of their own clients will be undertaken by the SME
Branches and targets only for MSME business and collection will be allocated to these Branches.
D
D

 These branches will be under the administrative control of concerned RO like any other branch. The
YE

performance of these SME Branches will be monitored by the MSME Dept, BCC.
 The proposals of the SME Branches are not to be routed through the SMELFs
r.

 The Branch Heads will be minimum one scale below the rank of Regional Head.
M

Routing of Proposals:
y:
B

The SME Branch, though under the jurisdiction of the concerned Regional Office, will present the proposal
directly to Credit Committee at RO/ ZO / BCC (Upto CACB).
ed

As the proposals are to be routed through LLPS, a copy of the proposal will be sent to other concerned
ad

authorities to enable them to present their observations/ suggestion and recommendation at the time of sanction.

If the proposal is beyond the DLP of SME Branch

Page | 32
 • Falling under the DLP of Regional Office- To be put up directly by BH, SME Branch before the RO committee.
(In case not in proximity of RO - through VC)

Y1
• Falling under the DLP of Zonal Office - To be put up directly by BH, SME Branch before the ZO committee.
(Through VC). Concerned RM/ DRM will be present through the VC

.(V
• Falling under the DLP of BCC - To be put up directly by BH, SME Branch before the BCC committee (up to
CACB). (Through VC). Concerned RM/ DRM and ZM/DZM will be present through the VC

Y
• The proposals from SME branches, instead of moving through ROs/ ZOs will move directly to the sanctioning

D
authorities through LLPS. A copy of the proposal is to be sent to the RO/ ZO so as to enable the RH/ ZH to
submit their observations/ recommendations during the sanction of the proposal.

ED
• SME Branch Head, RM/ ZM will be present in the meeting of the RO/ ZO/ BCC Committee though they are not

R
the members of the committee. Their recommendations & observations will be recorded as minutes of the
meeting.

R
• No second processing to be done at any level.

A
• In the beginning the SME Branches will have 4-5 staffs including the BH, SME Branch depending on the

M
number of proposals to be handled by them and going forward additional staff will be provided as per the

U
business requirements. However the number of staffs to be deployed at SME Branches can be finalised by the

K
concerned RH in consultation with Vertical Head, MSME Dept, sec

A
• Apart from canvassing and sanction of new proposals under their DLP, the SME branches will process and

D
recommend the proposals falling beyond their DLP.
N
• AIP, ADHOC/ TOD, Review are to be dealt by SME Branches for their accounts.
A
• Relationship Manager - to address the issues of monitoring/ collection/ cross selling related to the accounts.
N

• The SME Branches will function in line with SMELFs with regard to the processing & submission of proposals
A

as enumerated in the below Annexure.

K
VE

(ii) SME Loan Factories (SMELF)

VI

The SME Loan Factories are functioning at present at 27 centres with a set of guidelines and procedures which
entails the proposals to be routed through different layers of screenings before being presented to the final
LA

sanctioning authority.
U

Henceforth there will be no reprocessing of the proposals at various stages to cut the time of sanction. Further
D

the eligibility criteria for the proposals to be processed by SMELFs are modified as under so that the process of
D

referring the proposal to different authorities for sanction is simplified and the branches and other field
functionaries will also have the scope to exercise their DLP. It has been decided to roll out SMELFs at 71
YE

Regions including the existing SMELFs at 27 centres.

r.

Revised workflow of SMELFs:

M

Branch Powers
for SMELF Powers for RO /ZO/BCC powers for
y:

Sanction sanction sanction

(CM Headed - DLP Rs 3
B

Cr) / AGM Headed -DLP

ed

Rs 10 Cr)
Branch Headed by up Up to Branch Head's DLP For fresh/ RWI proposals Proposals falling beyond
ad

to Scale II Officers in case of both fresh and falling beyond the DLP of the DLP of the SM ELF are
(DLPS- I - Rs 12.5 lacs RWI Proposals the Branch Head, to be to be processed by SMELF
S-11- Rs 35 lacs) processed at SMELF as and to be sanctioned by the
per the DLP of SM ELF. competent authority at RO/
Page | 33
 ZO/ BCC
Branch Headed by SM  Fresh proposals with  For fresh proposals  Proposals falling

Y1
(DLP- Rs 1 Cr) limits up to Rs.0.50 Cr over Rs O.50cr to be beyond the DLP of the
 In existing proposals processed at SMELF SMELF are to be

incremental limits up to
Rs.0.50 Cr. subject to
overall limit is within the 
and to be sanctioned as
per the DLP of SMELF.
In case of RWI if the
.(V
processed by SMELF
and to be sanctioned by
the competent authority
at RO/ ZO/ BCC

Y
D For RWI, incremental proposal is beyond the
limits up to Rs.1 Cr DLP of the branch, or  In case of RWI, if the

D
subject to overall limit is incremental part is proposal fall beyond the

ED
within the DLP of beyond Rs 0.50 Cr then DLP of the SMELF,
Branch Head in S- IV. the same is to be then the same is to be

R
DLP of branch head. processed at SMELF as processed by SMELF
per their DLP. and forwarded to the

R
RO/ ZO/ BCC for

A
sanction by competent

M
authority.
Branch Headed by CM  Fresh Proposals with  Fresh Proposal over  Proposals falling

U
(DLP- Rs 3 Cr) limits up to Rs. 1.00 Rs. 1.00 crores to be beyond the DLP of the

K
crores. processed at SMELF SMELF are to be

A
 For RWI, incremental and to be sanctioned as processed by SMELF

limits up to Rs.1 Cr
subject to overall limit is
within the DLP of 
A
Branch Head in S- IV.
N
D
per the DLP of SMELF and to be sanctioned by
N
In case of RWI if the
the competent authority
at RO/ ZO/ BCC
proposal is beyond the  In case of RWI, if the

OLP of the Branch or proposal falls beyond

A

the incremental part is the DLP of the SMELF,

K

more than Rs 1 Cr, then then the same is to be

VE

the same is to be processed by SMELF

processed at SMELF as for sanction by
per their DLP. competent authority.
VI

(RO/ ZO/ BCC as the

case may be)
LA

Branch headed by • Fresh proposals with Fresh proposals over Rs 1  Proposals falling
AGM (DLP- Rs 10 Cr) limits up to Rs.1 Cr. Cr to be processed and beyond the DLP of the
U

sanctioned at SMELF as SMELF / BH are to be

D

 For RWI proposals per the DLP of the SMELF processed by SMELF
D

incremental limits up to and to be sanctioned by

YE

Rs.1 Cr subject to (If the concerned Branch the competent authority

overall limit is within the Head is of higher rank than at RO/ ZO/ BCC
DLP of Branch Head in SMELF Head, the proposal  In case of RWI, if the
r.

S- V. to be processed by SMELF proposals falls beyond

M

& to be Sanctioned by BH - the DLP of Branch then

upto its DLP. If the the same is to be sent
y:

proposal falls beyond the to RO/ ZO/ BCC for

DLP of BH then the final sanction.
B

SMELF will process and

ed

submit the proposal before

the sanctioning authority)
ad

Branch headed by To be de-linked from SMELF

DGM (DLP - Rs 20 Cr)
If the Head, SMELF and Branch Head are of same rank & scale, then the SMELF will process and sanction
proposals as per its DLP as stated above and will send to appropriate authority if the proposal exceeds the DLP
Page | 34
 of the Head, SMELF.
Review of existing To be considered by the Branches/ RO/ ZO as per their DLP as per the Bank's extant

Y1
account guidelines.
Mode of presentation  Falling under the DLP Regional Office- To be put up directly by Head, SMELF

.(V
for proposals beyond before the RO committee. (In case not in proximity of RO - through VC)
the DLP of SMELF  Falling under the DLP of Zonal Office - To be put up directly by SMELF before
the ZO committee. (Through VC). Concerned RM/ DRM will be present through

Y
the VC and their observations/ recommendation will be recorded as minutes of
the meeting.

D
 Falling under the DLP of BCC - To be put up directly by SMELF before the BCC

ED
committee (Upto CACB). (Through VC). Concerned RM/ DRM and ZM/DZM will
be present through the VC and their observations/ recommendation will be

R
recorded as minutes of the meeting.
 RO/ ZO/ BCC will not re-process the proposals which has been processed

R
through SMELFs.

A
Modification, For standalone Deviation, Concession etc. - to be processed by Branch/ RO/ ZO.

M
Concession, Deviation

U
etc.
Adhoc / TOD Ad hoc/ TOD are out of the purview of SMELFs

K
Staff Strength 4 to 7 depending on the existing MSME business and business potential in the area of

A
operation. However final staff strength can be finalized by the RH after due discussion

D
with Vertical Head, MSME, BCC.
N
It may be noted that the Head, SMELF can be posted by the RH / ZH only after
A
receiving approval of the Vertical Head, MSME, BCC
N

(iii) SME Cell at RO

A
K

In Regions having no SMELF at present/ as proposed above, a specialised SME Cell will operate at RO in line
VE

with SMELF. We propose to have 36 SME Cells at ROs where no SMELF is present at present juncture.
VI

• The SME Cell at RO will be headed by Chief Manager and will be supported by an officer for processing.
• No separate sales team to be attached with the Cell. The sales Team of RO will be canvassing the MSME
LA

proposals apart from the Branches.

U

• Proposals canvassed through branches and exceeding DLP of branch Head (as per the SMELF structure), are
to be processed at SME Cell - RO.
D
D

• The CM, SME Cell will present the proposal before the RO Committee/ ZO Committee (through VC).
YE

• For proposals falling under the power of BCC - Regional Head to present the proposal before the BCC level
Committee (Upto CACB)
r.

• No reprocessing of proposal shall happen at Zonal Office and BCC level for the proposals falling up to the
M

power of CACB
y:

The SME cells at ROs are to be guided by the details mentioned in Annexure - II detailing about the Operational
B

Guidelines for SME Cell at RO.(Refer Annexure inBCC/BR/112/341 dt 10.06.2020).

ed

This will help in centralisation of the processing activity which will improve the quality of assessment.
ad

Estimated TAT

On the backdrop of simplified processes and cutting down of additional layers of processing, it shall be the
endeavour of SMELF/SME Branch/SME Cell at RO to achieve the following TAT.
Page | 35
  10 working days for proposals falling up to the power of SMELF
 12 working days for proposals falling up to the power of RO level committee
 15 working days for proposals falling upto the power of ZO level committee

Y1
 20 working days for proposals falling upto the power of BCC level committee

.(V
Guidelines in respect of Regulatory MSME & SME Expanded accounts With CFS/CB/EC branches are as
under:

Y
 The proposals falling up to the power of ZOCC(GM/GM-CC) shall be submitted to respective Zones for

D
Review/ RWl/ or for fresh Sanction.

ED
 Proposals beyond ZOCC(GM/GM-CC) power to be submitted to BCC through Zone "(i.e.) Branches to
submit proposals to respective Zonal office and Zonal authority to submit their recommendation along with

R
their view to BCC for sanction of proposal. The branch may submit advance copy of proposal to MSME
Vertical at BCC directly.

R
 Any Adhoc/ excess beyond power of Branch Head and up to the power of ZOCC to be dealt by Zonal

A
Head/ZOCC(GM/GM-CC).

M
U
Contact Point verification (CPV)

K
A
Contact Point Verification (CPV) agencies empanelled by Retail Banking Department will be utilized for MSME

D
loans also.

Agencies Empanelled for Contact point Verification: N

A
 PAIMAC Finserve Private Limited
N

 Riddhi Corporate Services private Limited

A

 CRUX BPO Services Private limited

K

 Astute Corporate Services private Limited.

VE

Activities of CPV Agencies:

VI

 CPV agency will undertake following activities:

 Residence Verification
LA

 Office (Place of work) / Business Verification

 Telephone/mobile No. Verification
U

 Salary slip / Form No.16/ Bank statement Verification

D

 Verification of Income Tax Return (lTR), GST Returns

D

 (Verification of property proposed to be mortgaged if any, not to be carried out by CPV Agencies. The
YE

same will be carried out by our Bank officers as per extant guidelines)(BCC:BR:109:639)

3.13 Interest Subvention Scheme for MSMEs

r.
M

This schemes is under of the programmes announced by our honourable prime minister to support MSME sector.
y:

RBI has issued detailed guidelines of the said scheme vide their circular no RBI / 2018 – 19/125 FIDD.CO.
MSME. BC. No. 14/06.02.03/2018-19 dt. 21.02.2019.
B
ed

Salient features of the scheme:

 All borrowal accounts which are eligible to be classified as MSME under MSI\IED Act 2006 and having
ad

valid Udyog Aadhar Number (UAN) and valid GSTN Number shall be eligible for interest subvention under
the Scheme. Requirement of UAN is made optional for units eligible for GST. Wherever unit is not
required to obtain GST, in such case they may either submit income tax Permanent Account Number
(PAN) or account must be classified / categories as MSME as per Bank guidelines. Trading activities
Page | 36
 without UAN are also eligible for interest subvention as per modified guidelines. ( BCC:BR:111:680 dated
23.12.2019)

Y1
 Incremental term loan or fresh term loan or incremental or fresh working capital extended to above said
units w.e.f 2nd November 2018 (Date of Sanction) to 31.03.2020 would be eligible for coverage.

.(V
 All working capital or term loan or combination of both would be eligible for coverage to the extent of
Rs.100 lakh only (irrespective of the Limit) during the period of the Scheme.

Y
 MSME exporters availing interest subvention for pre-shipment or post-shipment credit under Department

D
of Commerce are not eligible under this scheme.

ED
 MSMES already availing interest subvention under any of the Schemes of the State /Central Govt. are not
be eligible under this Scheme.

R
 The list of accounts found eligible for availing 2% interest subvention as per above criteria in Finacle will

R
be notified to branches on Half yearly Basis.

A
 Branches to verify the list and send claim applications only in case of eligible accounts to their respective

M
Regional Offices after getting the same certified by the Statutory Auditor of the branch.

U
 Regions shall get the consolidated certificate of the Region certified by Regional Statutory Auditors and

K
the Zones shall get the consolidated certificate of the Zone certified by the Zonal Auditors.

A
 Zones shall send the branch wise consolidated report for the Zone as a whole to BCC and BCC will

D
submit the claim applications to SIDBI for the bank as a whole.
 N
Branches have to ensure that the ROI charged in the accounts is strictly as per guidelines advised for
A
Regulatory MSME segment as any error in the same will render the accounts ineligible under the scheme.
N

(Detailed guidelines Ref: BCC: BR: 111/102 dt.26.02.2019)

A
K

3.14 Concession in MSME accounts

VE

Every sanction letter should contain, applicable ROI as per Banks guidelines and concession allowed there on
VI

with specific period of availability of concession.

LA

Concession in the account shall stand withdrawn, ii any of the below mentioned adverse symptoms observed ln
the account:
U
D

 Financial Discipline, including cheque returns (more than 6) in the account due to financial reason.
D


YE

In case account moves to SMA- 1 category. ( Concession shall stand withdrawn for the period during
which account remains in SMA category along with additional penal interest being applied as per Bank
norms)
r.

 Degradation of External rating / CMR Rating ( if applicable)

M

 Degradation of Internal rating

y:

 Current account opened with other bank without prior permission of the Bank.
B

 Turnover in the account is less than 80% from the level of sales achieved on quarterly basis.
ed

 Sanctioned terms and condition are not complied with.

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Concession in interest rate on card rates can be allowed as per revised structure/guidelines conveyed vide
circular no. BCC: BR: 111/288 dt.20.06.2019 on DLP.

Page | 37
 3.15 ZED CERTIFICATION FOR MSME:

Y1
With the objective of supporting the ongoing effort of “Make in India” campaign and the Hon’ble Prime Minister’s

.(V
call for Zero Defect Zero Effect, the ministry of Micro, Small and Medium Enterprises, Govt. of India launched the
Financial Support to MSMEs in ZED Certification scheme on 11.07.2016.

Y
Under this scheme, the main aim is to enhance global competitiveness of MSMEs by providing them financial

D
support in assessment, rating and handholding. Quality council of India an autonomous body set up by Ministry of

ED
commerce and industry has been appointed as the National Monitoring and Implementing Unit for this scheme.

R
There are -5- level of rating under the scheme:

R
A
 Bronze (Lowest)

M
 Silver

U
 Gold

K
 Diamond

A
 Platinum (Highest)

D
N
Based on the rating of a particular MSME unit the Government of India shall provide subsidy towards cost of
A
certification. Our Bank has also approved the concessional ROI for Gold / Diamond / Platinum category MSMEs.
N

Our Bank gives concessions to ZED certified MSME Units in processing charges(upto 25%) and in rate of
A

interest upto (25 bps) subject to certain conditions.

K
VE

(Ref: circular number BCC: BR: 111:454 dated 20.09.2019)

VI
LA

3.16 COVID-19 and MSME

U

Businesses have been taking a hit due to Covid-19 lockdown. The supply chain has been disrupted, imports are
D

down, and markets are bearish. The MSME segment has perhaps been the hardest hit.
D
YE

Challenges for the MSME sector

r.

According to a recent GOQ survey, about 26% of businesses surveyed said their sales and purchases have been
M

impacted due to the virus outbreak. MSMEs are grappling with problems like low liquidity or cash flow and lack of
y:

workforce as the daily-wagers have gone to their villages.

B

Businesses that are into manufacturing will also take a hit on export business as the situation remains uncertain.
ed

The services sector is also slowing down with more people opting for social isolation.
ad

Page | 38
 Ref. Circular: - BCC: BR: 112/307 dated 27-05-2020)

Y1
"BOB Guaranteed Emergency Credit Line Scheme (BGECLS)".

.(V
Facility & Purpose For providing Additional Working Capital Term Loans to existing borrowers

Y
of the Bank as on 29 February 2020 in view of COVID 19 Crisis, as a

D
special case, to build up current assets for working capital requirement / To

ED
meet out liquidity mismatch / To use for other business requirement

R
Nature of the Facility Additional Working Capital Term Loan (AWCTL).


R
Extent of Limit (Loan Amount) The amount of Limit would be up to 20% of total outstanding loans

A
up to Rs. 25 crore from entire banking channel /Fl's as on 29th

M
February, 2020, subject to the borrower meeting all the eligibility

U
criteria.

K
 Total Outstanding Amount would comprise of the on-balance sheet

A
D
exposure such as outstanding amount across WC loans, term loans
N
and WCTL loans. Off-balance sheet and non-fund based exposures
A
will be excluded. If 0/S of credit Limit includes Devolved LC/Invoked
N

BG amount, the same should be excluded for assessing the limit as

A
K

well as for eligibility.

VE

 Loans extended through current Government schemes such as

PMEGP, PMMY etc. would continue to be categorized under that
VI

scheme as earlier. For example, if due to sanction of this BGECLS,

LA

the exposure is exceeding the scheme specific limit, it will be

U

continue to be classify under the existing Scheme. Additional WCTL

D

Loans under this Scheme shall be over and above the existing loan.
D

 In case a borrower has existing limits with multiple lenders, BGECLS

YE

may be availed either through our Bank or other lenders depending

upon the agreement between the lenders and borrower.
r.


M

In case the borrower wishes to take this specific facility from one
lender, an amount more than the proportional 20% of the
y:

outstanding credit that the borrower has with that particular lender, a
B

No Objection Certificate (NOC) would be required from all other

ed

lenders.
ad

 No NOC will, however, be required if the BGECLS availed from a

particular lender is limited to the proportional 20% of the outstanding

Page | 39
 credit that the borrower has with that lender.
Validity of Scheme The Scheme would be applicable to all loans sanctioned under

Y1
BGECLS during the period from May 23, 2020 to 31st October,

.(V
2020.
Eligibility Criteria  Existing MSMEs/ Business Enterprises and Pradhan Mantri Mudra

Y
Yojana (PMMY Borrowers reported on Mudra portal up to

D
29.02.2020) having combined outstanding loan exposure up to

ED
maximum Rs. 25 crore from entire Banking channel/FIs as on

R
29.02.2020 and annual turnover of up to Rs. 100.00 Crore during

R
the Financial Year 2019-20. Business Loans given to Individuals

A
under PMMY or any other Govt. Scheme shall be eligible under the

M
scheme. However, Loans provided in individual capacity will not be

U
covered under the Scheme.

K
 Entity should be constituted as Proprietorships, Partnerships,

A
D
Registered Companies, Trusts and Limited Liability Partnerships
N
(LLPs), and PMMY borrowers.
A
 Borrower accounts should be classified as regular, (less than or
N

equal to 60 days past due) SMA-0 or SMA-1 as on 29.2.2020.

A
K

Accounts classified as NPA or SMA-2 as on 29.2.2020 by any of the

VE

Bank/Fl will not be eligible under the Scheme.

The MSME borrower must be GST registered in all cases where
VI

such registration is mandatory. This condition will not apply to

LA

MSMEs that are not required to obtain GST registration.


U

Tenor / Repayment Period of Loan The tenor of loans provided under this scheme shall be four years
D

from the date of disbursement, including a moratorium period of one

D

year for principal amount.

YE

 Interest shall, however, be payable during the moratorium period.

 The principal shall be repaid in 36 instalments after the moratorium
r.
M

period is over.
Guarantee coverage NCGTC shall provide 100% guarantee coverage on the outstanding
y:

amount for the credit facility provided under the scheme as on the
B

date of NPA. Necessary undertaking to be obtained from the

ed

borrower as per annexure-2 attached in circular.

ad

DP/Margin Nil. However, end use of funds to be ensured. The disbursement of

Additional WCTL facility may be done in bullet or in trenches, as per

Page | 40
 request of the borrower.
Security No additional collateral shall be insisted by Bank for additional credit

Y1
extended under the Scheme.

.(V
However, the credit under the Scheme will rank pari passu with the
existing credit facilities in terms of cash flows (including repayments)

Y
and securities charged to existing facilities.

D
Existing primary/collateral securities would be extended to cover the

ED
BGECLS facility.

R
Time period allowed for Security Perfection, i.e. ROC/CERSAI

R
registration and any other formalities for charge creation/extension

A
to be completed within a period of 3 months from the date of

M
disbursal.

U
Related Circulars BCC:BR: 112:307 dated 27.05.2020 regarding introduction of captioned scheme

K
Please refer the given followed by below mentioned circulars:

A
circulars for 1. BCC:BR:112:324 dated 01.06.2020 providing clarification on certain scheme guidelines.

D
modification/clarification/FAQ
issued by bank time to Time. N
2. BCC: BR:112:374 dated 30.06.2020 regarding capping of rate of interest.
A
3. BCC:BR:112:385 dated 03.07.2020 conveying FAQs & other operational guidelines.
N
4. .BCC: BR:112:468 dated 07.08.2020 regarding modifications in Scheme guidelines.
A

5. BCC:BR:112:491 dated 19.08.2020 conveying FAQs dated 10.08.20

K

6. BCC:BR:112:556 dated 21.09.2020 Clarifications in respect of certain scheme guidelines

VE

given by NCGTC along with FAQs dated 14.09.20

VI

BOB Guaranteed Emergency Credit Line Scheme (BGECLS) – Modifications

LA
U
D
D
YE
r.
M
y:
B
ed
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Page | 41
 ad
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B
y:
M
r.
YE
D
D
U
LA
VI
VE
K
A
N
A
N
D
A
K
U
M
A
R
R
ED

Page | 42
D
Y
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 ad
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y:
M
r.
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D
D
U
LA
VI
VE
K
A
N
A
N
D
A
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U
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A
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R
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Page | 43
D
Y
.(V
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 ad
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y:
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D
D
U
LA
VI
VE
K
A
N
A
N
D
A
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U
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A
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Page | 44
D
Y
.(V
Y1
 Latest guidelines on Commitment charges & Service charges

Y1
As per Circular BCC/BR/113/140 , Date: 12.03.2021

 No processing charges are applicable for limits up to Rs.5 Lakhs (FB+NFB) under Micro & Small Segment

.(V
 No Prepayment penalty for Fixed Rate Loans for limits up to Rs.50 Lakhs under Micro & Small segment
 No Prepayment penalty for Floating Rate Loans irrespective of any limit under Micro & Small segment

Y
D
ED
Commitment Charges (Fund based facilities) for MSME borrowers - Revision
As per Circular BCC/BR/113/122 , Date: 04.03.2021

R
R
A
M
U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
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Page | 45
 4.0 Government Schemes & Subsidies for MSME
4.1 Stand-up India Scheme

Y1
.(V
 Stand up India was launched by Government of India on 5 April 2016 to support entrepreneurship
among women and SC & ST communities.

Y
The objective of the Stand Up India scheme is to grant loan to SC/ST beneficiaries & women

D
entrepreneurs for gainful employment through income generation activities (In case of non-individual
enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/

ED
ST or woman entrepreneur).

R
 The major features of the scheme are as under12 (Ref: BCC: BR: 108: 160 dated 02.04.2016):-

R
A
Particular Criteria

M
U
Limit Min:- More than Rs.10.00 Lakh ; Max :- Rs.100.00 Lakh

K
Composite loan inclusive of Working Capital component

A
Coverage Manufacturing, Services or the trading sector for setting up any new enterprise

D
According to BCC/BR/113 /151 N
DATED 19.03.2021
A
N
A
K
VE

Refinance The entire loan component would be eligible for refinance by SlDBl
VI

Security The loan under Stand Up India scheme would be appropriately secured and backed
by a credit guarantee through a credit guarantee scheme for which National Credit
LA

Guarantee Trustee Company Ltd (NCGTC) would be the operating agency.

The norms in this respect are aligned with existing CGTMSE norms.
U
D
D

The Finacle Scheme codes of Stand up india are:

YE
r.
M
y:
B
ed
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Page | 46
 ad
ed
B
y:
M
r.
YE
D
D
U
LA
VI
VE
K
A
N
A
N
D
A
K
U
M
A
R
R
ED

Page | 47
D
Y
.(V
Y1
 4.2 DAY-NULM Scheme

Y1
 This scheme Provides financial assistance to individuals/groups including street
vendors/hawkers of urban poor for setting up gainful self-employment through Self Employment

.(V
Program (SEP).
 The programme also supports Self Help Groups (SHGs) of urban poor to access easy credit

Y
from Bank and avail interest subsidy on SHG loans.

D
 The SEP will also facilitate issuance of credit cards for working capital requirement of the

ED
entrepreneurs.
 The percentage of women beneficiaries under SEP shall not be less than 30 percent.

R
 SC/ST must be benefited to the extent of their proportion in the city/town.

R
 A special provision of 3% reservation should be made for differently able person.

A
M
Parameters Guidelines

U
K
Identification and Selection of
 The Community Organizers (COs) and professionals from Urban
Beneficiary

A
Local Body (ULB) will identify the prospective beneficiaries from

D
among the urban poor.
 N
Bank may also identify prospective beneficiaries at their end and
A
forward such cases directly to ULB.
N

 A Task force constituted at ULB Level will scrutinize the

A

applications based on experience, skill and viability of activity.

K

 The chief executive officer /Municipal commissioner of ULB will

VE

be responsible to constitute the task force.

 The Task force will then either recommend or reject case to case
VI

basis as per merit.

LA

 The case duly recommended by Task force will be forwarded by

the ULB to the concerned Bank for further processing.
U

 Case recommended by the Task Force have to be processed by

D

the concerned bank within 15 days.

D

 Banks may also directly accept the loan application of the Urban
YE

Poor beneficiaries as per guidelines of PMMY without the need

of having prior sponsoring from ULP.
r.

 The bank can send details of such loans sanctioned by them to

M

the ULPs for checking for confirmation of their eligibility for

interest subsidy under DAY NULM.
y:

 On confirmation of the eligibility interest subsidy can be claimed

B

from the ULBs.

ed

 The subsidy amount will be directly transferred to loan account of

DAY-NULM Beneficiaries.
ad

Page | 48
 Educational Qualification
 No minimum qualification required.
and Training Requirement


Y1
However if the identified activity required some special skill,
appropriate training must be provided to the beneficiary before

.(V
extending financial support.
Follow-up entrepreneurial
 After financing to Individual and Group beneficiaries, the ULB will
support to Individual and
also arrange to conduct follow-up Entrepreneurship Development

Y
Group
Programme (EDP) as and when required.

D
Entrepreneurs


ED
Such programme should preferably be conducted once in six
months for each beneficiary who has been given a loan.

R
Pattern of Financial
Interest subsidy, over and above 7% rate of interest will be available on a
Assistance

R
bank loan for setting up of individual or group enterprises. The difference
between 7% p.a. and the rate of interest charged by the bank will be

A
provided to banks under ‘DAY-NULM'.

M
Interest subsidy

U
Will be given only in case of timely repayment of loan. Suitable certification

K
from banks will be obtained by the ULB in this regard.

A
An additional 3 percent interest subvention will be provided to all Women

D
Self Help Groups (WSHGs) who repay their loan in time and suitable
certification will be obtained from banks by the ULB.
N
A
Procedure for interest
After disbursement of loan to the beneficiaries, the concerned branch of the
N
subsidy to Banks
bank will send details of disburse loan cases to ULB along with details of
A

interest subsidy amount.

K

Procedure 1:
VE

The settlement of claims made by the Banks will be done by the ULB on
Quarterly basis. However the submission of claims should be on monthly
VI

basis.
LA

The claims should not be pending more than a quarter. In case the claims of
the banks are not settled for a period of 6 months, SLBC is empowered to
stop the scheme temporarily in selected cities subject to clearance of
U

claims by such ULBs

D

Procedure – ll
D
YE

Nodal Agency for releasing interest subsidy: A public sector bank may be
engaged by each state as nodal bank in consultation with the convener of
the respective State Level Bankers Committee (SLBC)' All the Banks will
r.

consolidate data regarding interest subsidy from their branches and upload
M

on the portal Nodal Bank. The nodal bank, after verification, will transfer the
interest subsidy to the bank branches.
y:

Individual Enterprises The norms /specification of Individual Micro Enterprise Loans :

B

(SEP-l)-Loan & Subsidy Age Minimum 18 years at the time of

applying for loan.
ed

Project Cost Maximum Rs. 2.00 Lakh

Collateral Guarantee on Bank Loan No collateral required.
ad

Repayment Between 5 to 7 years after initial

moratorium of 6-18 months as per
norms of the banks.
Page | 49
 Margin Money Up to Rs.50000.00 Nil
Group Enterprises (SEP-G)-
The norms/ specifications for group based micro-enterprise loans are as

Y1
Loan & Subsidy
follow:

.(V
Eligibility Criteria :
Should have minimum 3 member with a minimum of 70% of members from
urban poor families. More the 1 member from a family should not be

Y
included in the same group.

D
Age: All member should have attained Minimum 18 years at the time of

ED
applying for loan.
Project Cost: Maximum Rs.2.00 Lacs per member or Rs.10.00 lacs per

R
group, whichever is lower.

R
Type of Loan Facility:

A
Term Loan and working capital through Cash Credit Facility. Also

M
Composite loan depending upon the requirement of borrower.

U
Margin Money:

K
Up to Rs.50000.00 Nil

A
For higher amount preferably 5% should be taken Margin Money and it

D
should in no case be more then 10% of the project cost.
N
Repayment: Between 5 to 7 years after initial moratorium of 6-18 months as
A
per norms of the banks.
N
A

Collateral Guarantee on Bank Loan: No collateral required.

K

Only the assets created would be hypothecated/ mortgaged/ pledged to

VE

banks for advancing loans.

Type of Loan Facility: SHGs can avail Term Loan or Cash Credit Facility or both based on their
VI

need. Additional loan can also be sanctioned in case of need even though
the previous loan is outstanding
LA
U
D
D
YE
r.
M
y:
B
ed
ad

Page | 50
 Y1
4.3 Pradhan mantra Mudra Scheme (PMMY)

.(V
 PMMY is a flagship scheme of the Government of India to extend affordable credit to micro and
small enterprises.
 (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up

Y
to 10 lakh to the non-corporate, non-farm small/micro enterprises.

D
 Mudra loans are designed to bring enterprises into the formal financial system, or to “fund the

ED
unfunded”.

R
 Loans under PMMY scheme are available to non-farm micro or small enterprises engaged in

R
income generation through manufacturing, trading and services.

A
 Enterprises involved in allied agricultural activities can also apply for Mudra loans.

M
U
Main features of the Mudra loan

K
A
 The Mudra loan scheme offers credit facilities to micro and small enterprises engaged in income

D
generation.
 N
One of the key benefits of a Mudra loan is that borrowers are not required to provide security or
A
collateral.
N

 Additionally, there are no processing charges on Mudra loans.

A

 The credit facilities extended under the PMMY can be for any type of fund or non-fund based
K

requirements.
VE

 Hence, borrowers can use the Mudra loan scheme for a variety of purposes. The credit from Mudra
VI

loans can be used for term loans and overdraft facilities, or to apply for letters of credit and bank
guarantees.
LA

 There is no minimum loan amount for Mudra loans.

U

There are three types of Mudra loans depending on the loan amount:
D
D

Shishu: Loans sanctioned under the PMMY scheme up to Rs.50000

YE

Kishore: Loans sanctioned under the PMMY scheme from Rs.50001 up to Rs.5.00 lakh
r.

Tarun: Loans sanctioned under the PMMY scheme Rs.5,00,001 up to Rs.10.00 lakh
M

 While there is no minimum loan amount under the Mudra loan scheme, the maximum loan amount that
y:

can be taken under the PMMY is Rs.10 lakh.

B

 Borrowers don’t need to pay processing charges or offer collateral if they avail a Mudra loan. As per the
ed

PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can
include those engaged in allied agricultural activities, such as horticulture and fisheries.
ad

 The interest rate on Mudra loans is determined by the Marginal Cost of Lending Rate or MCLR, which is
calculated according to the RBI guidelines

Page | 51
 Eligibility

Y1
All “Non-farm enterprises” under “Micro Enterprises” and “Small Enterprises” segment engaged in “income
generating activities”/ engaged in “manufacturing, trading and services“ and whose “credit needs are up to

.(V
Rs.10.00 lacs”.

Now allied agriculture activities have also been included under PMMY scheme w.e.f. 01.04.2016.

Y
D
All PMMY account opened under the scheme code LA520, LA521, LA522, CC017, CC018, CC0247, OD020

ED
& OD021 will be covered under CGTMSE coverage.

R
Only standard account will be accepted for coverage. Note once the account covered under CGTMSE the
account must be standard for at least 6 months after coverage. (BCC: BR:111:270 dt. 10.06.2019)

R
A
PMEGP LOAN (BCC:BR:108:540 DATED 16/11/2016)

M
U
lnterest Subvention Scheme for MUDRA - Shishu Loan: BCC: BC: 112:425 dated 20.07.2020

K
A
D
N
The Covid-19 pandemic and the consequent lockdown has been highly disruptive in terms of businesses, more
A
particularly for the Micro enterprise segment. ln order to alleviate this, the Hon'ble Finance Minister as a part of
N
the economic stimulus package, viz., Atmanirbhar Bharat Abhiyaan, announced on 14 May 2020 an interest
A

Subvention Scheme for MUDRA - Shishu loans' wherein GOI will provide interest subvention of 2% in MUDRA -
Shishu loan accounts that are not categorized as NPAs, for a period of 12 months.
K
VE
VI

Coverage:
LA

1. All Borrowers having availed a term loan/ working capital facility which are collateral free and having sanction
loan amount of Rs.50,000/- or less under Shishu category of Mudra Scheme which are given to eligible
U

micro/small business entities engaged in manufacturing, trading, services(Non-Agri) and activities allied to
D

agriculture.
D

2. This scheme will cover all eligible standard Shishu accounts outstanding as on 31st March 2020
YE

3. The interest Subvention will be available only to loans which are not NPA as per RBI guidelines, as on March
r.

31, 2020; and should not be NPA for the months for which claim is submitted.
M

4. The interest Subvention will be calculated at 2. % p.a. on the outstanding balance from time to time, for 12
y:

months or till maturity of the loan, whichever is earlier.

B

5. The borrower shall be eligible for interest subvention only on the amount which was disbursed before March
ed

31, 2020 the borrower shall be eligible to get interest subvention benefits till the borrower is in Shishu category.
ad

6. The Borrower shall not be eligible for 2 % interest subvention, lf the borrower avails the additional facility, for
business purpose, in the form of Term loan/working capital assistance in a single or multiple account and crosses
the Limit of Rs 50,000/- as stipulated under the Scheme.

Page | 52
 7. The scheme will be in operation for 12 months. For borrowers, who have been allowed a moratorium by Bank,
as permitted by RBI under the 'COVID 19 Regulatory Package', the scheme would commence post completion of

Y1
the moratorium period till a period of 12 months i.e. from September 01, 2020 till August 31,2021. For other
borrowers, the scheme would commence w.e.f June 01, 2020 till May 31, 2021.

.(V
8. Rate of interest shall not be increase in any Shishu loan under PMMY covering under this interest subvention
scheme, during the period of the scheme, unless the same is permitted by RBl.

Y
D
9. SIDBI act as the Nodal Agency for this Scheme and Bank shall submit the claim to SIDBI along with data of

ED
accounts eligible for 2% interest Subvention.

'PM SVANidhi Scheme' (a special micro credit facility for Street Vendors):

R
R
Ref : BCC:BR:112:435 dated 24.07.2020 , BCC:BR:112:475 dated 10.08.2020

A
M
Parameters Features

U
Name of the Scheme PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi

K
Objectives The scheme is a Central Sector Scheme i.e. fully funded by Ministry of Housing
and Urban Affairs (MoHUA) with the following objectives:

A
(i) To facilitate working capital loan up to Rs.10,000/- per vendor.

D
(ii) To incentivize regular repayment; and
(iii) N
To reward digital transactions
A
Age Minimum Age - 21 Years
Maximum Age at the end of Tenure - 65 Years
N

CRIF Score Minimum Cut off Score 601 (0,-1 can be taken).
A

However System will convert the scoring into Colour coding. Only Green and
K

Amber will be considered for processing further. (Refer Annexure VI - SOP

VE

Eligibility criteria of The Scheme is available to all street vendors (SV) engaged in vending in urban
Beneficiaries areas as on or before March 24, 2020. Further if ULB has issued COVID card
VI

after 24.03.2020, such vendor also eligible as beneficiary, since issue of COVlD
card is the sole prerogative of the ULBs which conduct due diligence including
LA

the date of vending before issue.

U

The eligible vendors will be identified as per following criteria:

D

A. Street vendors identified in survey and in possession of Certificate of Vending

D

1 Identity Card issued by Urban Local Bodies (ULBs);

YE

B. The vendors, who have been identified in the survey but have not been issued
Certificate of Vending 1 Identity Card; Provisional Certificate of Vending would
r.

be generated for such vendors through an IT based Platform by ULBs.

C. Street Vendors, left out of the ULB-Ied identification surveyor who have
M

started vending after completion of the survey and have been issued Letter of
y:

Recommendation (LoR) to that effect by the ULB 1 Town Vending Committee

(TVC); and D. The vendors of surrounding development peri-urban 1 rural areas
B

vending in the geographical limits of the ULBs and have been issued Letter of
Recommendation (LoR) to that effect by the ULB / TVC.
ed

Note: Only system generated LOR is acceptable through PM SVANidhi Portal.

ad

Type of Facility Working Capital Demand loan (WCDL)

Margin Nil
Extent of Limit (loan Amount Upto Rs.10,000/- per vendor for first cycle of assistance
Subsequent cycles of 1. As per scheme timely or early repayment, the vendors will be eligible for
Page | 53
 Assistance the next loan with an enhanced limit. Detailed instructions will be issued
in due course by MoHUA.

Y1
2. The vendors will be eligible for benefits of interest subsidy on the
enhanced limit for the scheme period i.e. March 31, 2022. Cash Back

.(V
Incentive shall be available only to a maximum limit of Rs. 1200
3. The Guarantee coverage on subsequent cycles (up to eligible enhanced
limit) will be available on the portfolio covered by CGTMSE during the

Y
scheme period i.e. Up to March 31 2022.

D
Tenure Maximum up to 12 months
Repayment Schedule Repayable in 12 Equal Monthly instalments (EMls) starting from one month after

ED
Disbursement.
Note: On timely or early repayment, the vendors will be eligible for the next cycle

R
of working capital loan with an enhanced limit.

R
Collateral Security No collateral to be obtained.
CGTMSE graded Guarantee Cover available on portfolio basis as detailed below

A
Credit Guarantee by The Scheme has a provision of Graded Guarantee Cover for the loans

M
CGTMSE sanctioned, as indicated below, to be administered by Credit Guarantee Fund

U
Trust for Micro and Small Enterprises (CGTMSE), which will be operated on

K
portfolio basis:
a) First Loss Default (Up to 5%): 100%

A
b) Second Loss (beyond 5% up to 15%): 75% of default portfolio

D
c) Maximum guarantee coverage will be 15% of the year portfolio.
N
A
All loans given under the scheme will be considered for coverage under the
guarantee.
N

CGTMSE shall have on line process for portfolio coverage and claim settlement.
A

The periodicity of filing of claims will be quarterly.

K

Sanctioning Authority CPC (Central Processing Cell), Gandhinagar via Digital Lending Process.
VE
VI

'Credit Guarantee Scheme for Subordinate Debt' (CGSSD):

LA

(For detailed guidelines please refer BCC:BR:112:436 dated 24.07.2020.)

U
D

Based on the guidelines issued by the Ministry of MSME, Government of India (as a part of AtmaNirbhar Bharat
Package), and the scheme named 'Credit Guarantee Scheme for Subordinate Debt' (CGSSD). The loans under
D

the Scheme would be sanctioned to promoters of stressed MSMEs for infusion as equity / quasi equity in the
YE

business eligible for restructuring, as per RBI guidelines for restructuring of stressed MSME advances.

Eligible Borrowers:
r.

I) The Scheme is applicable for those MSMEs whose accounts have been standard as on 31.03.2018
M

and have been in regular operations, either as standard accounts, or as NPA accounts during financial
year 2018-19 and financial year 2019-20.
y:

II) Fraud/ Wilful defaulter accounts will not be considered under the Scheme.
B

III) Personal loan will be provided to the promoters of the MSME units. The MSME itself may be
Proprietorship, Partnership, Private Limited Company or Registered Company etc.
ed

IV) IV) The Scheme is valid for MSME units which are stressed, viz. SMA-2 and NPA accounts as on 30
04.2020 who are eligible for restructuring as per RBI guidelines on the books of the Lending
ad

institutions.

Page | 54
  Promoter(s) of such MSME units will be given personal loan equal to 15 % of his/her stake (equity
plus debt) or Rs 75 lakh whichever is lower as per last audited balance sheet. However, this loan shall
not exceed the original debt of the beneficiary unit.

Y1
 The tenor of the loan sanctioned under the scheme would be maximum 10 years and moratorium
would be of maximum 7 years.

.(V
 CGTMSE would provide guarantee for 90% of the loan sanctioned under the scheme and remaining
10% of the loan is to be secured by collateral security from promoter borrowers. Guarantee fee @
1.50% p.a. shall borne by the borrower.

Y
 Loan is further secured by second charge over the assets financed under the existing facilities availed

D
by the MSME unit.

ED
R
R
Pre-approved MSME Loan for Current Account Holders based on Cash flow Lending Model:

A
M
Parameters Guidelines

U
K
Objective To provide working capital finance under Cash Flow based lending model, to

A
MSME units which are routine cash flows through current accounts with us.

D
Nature of Facility Business Demand Loan
Purpose N
To meet Working capital finance requirements
A
N
Validity of scheme Current Scheme to be Valid till 31 October 2020 and to be reviewed thereafter.
A

Margin Nil
K

Tenure of Loan Maximum upto 36 months

VE

Repayment Period 36 Equal Monthly Instalments (EMls) starting one month after disbursement
VI

Quantum of Finance 10 times of the average balance in the· last FY or 20% of credit turnover (customer
induced) in the last FY, whichever is lower, subject to minimum of Rs.0.50 lacs and
LA

maximum Rs.10.00 lacs.

U

Sanctioning authority Branch head as per OLP

D

Security First & Exclusive charge by way of hypothecation of Stocks & Book Debts
D
YE

Personal Guarantee of all Partners/Promoter Directors (Hypothecation charge to be

r.

registered with CERSAI and ROC (in case of company)

M

Scheme Code LA 537

y:

Reference For detailed scheme guidelines ref. BCC:BR:112:550 dated 29.09.2020

B
ed
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Page | 55
 4.4 Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises (CGTMSE)
 New and existing Micro and Small Enterprises engaged in manufacturing or service activity, satisfying

Y1
the criteria specified in MSMED Act 2006 with effective ROI on the Credit facility shall not be more

.(V
than .

 RBI guidelines but excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training

Y
D
Institutions etc.

ED
 Credit facilities above Rs.50 lakh and up to Rs.200 lakh will have to be rated internally and should be

R
of investment grade.

R
A
Retail Trade:

M
1st Year 2% of the guaranteed amount

U
2nd Year 2% of the outstanding amount

K
A
Limit:
 Credit Exposure should be minimum Rs.0.00 and maximum of Rs.100 lakh per MSE borrower.

D
Guarantee Cover: 50% N
A
N

Annual Guarantee Fee:Other than Retail Traders:

A
K

Limit:
 Maximum Rs.200 lakh per borrower with partial collateral security and without third party guarantees
VE

Not to be regarded as Third Party:

VI

 Proprietorship or Partnership - personal guarantee of Proprietor/partner

LA

 Company - Personal guarantee of Director

U

Primary security:
D

 Asset created out of the credit facility or directly associated with the business / project.
 Collateral security: Any other security which is not created out of the credit facility
D
YE

Hybrid Security:
 Guarantee cover for the portion of credit facility not covered by collateral security up to a maximum of
r.

Rs.200 lakh for fresh credit facilities sanctioned on or after April 01, 2018.CGTMSE will, however, have
M

second charge on the collateral security provided by the borrower for the credit facility.
y:

Tenure:
 Term Loan / Demand Loan: Repayment Period
B

 Working Capital: 5 years

ed

 Composite Limit: Repayment Period of Term Loan

ad

Page | 56
 Mandatory Update on CGTMSE Portal
PAN Number : for Udyog Aadhaar Renewal of Application Processing ->Guarantee

Y1
Limit above 5 Number (UAN) Expired WC For -> Renewal of Cover for WC
lakh Enhancement Application Processing -> Guarantee

.(V
of Working For -> Enhancement in WC
Capital
Coverage of Application Processing -> Guarantee

Y
Additional for -> Additional Term Loan
Term Loan

D
ED
For Loan sanctioned on or after 01.04.2018:

R
Credit Facility Annual Guarantee Fee (AGF) [% p.a.]*

R
Women, Micro Enterprises and Units covered Others

A
in North East Region

M
U
Up to 5 Lakhs 1.00 + Risk Premium as per extant guidelines of the Trust
Above 5 Lakhs 1.35 + Risk Premium as per extant guidelines 1.50 + Risk Premium as per extant

K
and up to 50 of the Trust guidelines of the Trust

A
Lakhs

D
Above 50 Lakhs 1.80 + Risk Premium as per extant guidelines of the Trust
and up to 200 N
A
Lakhs
Retail Trade
N

Rs.10 lacs to 2.00% + Risk Premium as per extant guidelines of the trust.
A

Rs.100 lacs
K

*AGF will be charged on the guaranteed amount for the first year and on the outstanding
VE

amount for the remaining tenure of the credit facility.

VI

(1) Risk premium on NPAs in (2) Risk premium on

Guaranteed portfolio ClaimPayout Ratio
LA

NPA Percentage Risk Premium Claim Pay-out Risk Premium

Percentage
U

0-5% SR 0-5% SR
D

>5-10% 10% of SR >5-10% 10% of SR

D

>10-15% 15% of SR >10-15% 15% of SR

>15-20% 20% of SR >15-20% 20% of SR
YE

>20% 25% of SR >20% 25% of SR

SR–Standard
r.

Rate
M

For Loan sanctioned before 01.04.2018:

y:

Credit Facility Annual Guarantee Fee (AGF) [% p.a.]

Women, Micro Enterprises and Others
B

units in North East Region (incl.

ed

Sikkim)
Upto .5 lakh 0.75 1.00
ad

Above .5 lakh and 0.85 1.00

upto .200 lakh

Page | 57
 Y1
.(V
Y
D
ED
R
R
A
M
U
Entire fees, initial as well as Annual Guarantee fee, to be collected from the borrowers irrespective of the

K
limit, gender and scheme. (BCC:BR:111:254 dt 01.06.2019)

A
D
Process Flow of CGTMSE:
N
Hence irrespective of whether the borrower is paying or the bank is paying the entire guarantee fee shall
A
N
be routed through P/L CGTMSE fee Paid Account (Finacle A/C No. XXXX0054401003) only. Further
A

CGTMSE will raise invoice only on Bank of Baroda and not on borrowers as we are the clients for CGTMSE
K

and not the borrowers. Hence the payment of fees shall be through VENPAY menu and to the debit of
VE

above said P/L Account only (i.e.) even in cases where the entire fees is borne by the borrower. The
VI

detailed process flow is given in BCC BR 110 127 dated 16.03.2018.

LA

Following two risk premiums have been introduced over and above the above mentioned guarantee fee
structure:
U

(1) Risk premium on NPAs in (2) Risk premium on Claim Pay-out

D

Guaranteed portfolio of the Bank Ratio of the bank

D

NPA Risk Premium Claim Pay-out% Risk Premium

Percentage
YE

0-5% SR(Standard 0-5% SR(Standard

Rate) Rate)
r.

>5-10% 10% of SR >5-10% 10% of SR

M

>10-15% 15% of SR >10-15% 15% of SR

>15-20% 20% of SR >15-20% 20% of SR
y:

>20% 25% of SR >20% 25% of SR

B
ed
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Page | 58
 Lodgement / Settlement of Guarantee Claim:
 Guarantee can be invoked (claim can be lodged) with the TRUST for 1stinstalment of guaranteed amount

Y1
when Dues covered under CGTMSE classified as Non-Performing Asset
 Marking of NPA date be done with Trust before end of subsequent quarter of classification of NPA i.e. If

.(V
account turned to NPA on 15.01.19, Marking with trust be done prior to 30.06.19.
 Lock in period is -18- month’s period from Date of 1st premium payment /guarantee start date or last date of
disbursement in case of term loan, whichever is later.

Y


D
The Trust shall pay 75 per cent of the guaranteed amount on preferring of eligible claim, within 30 days,
subject to the claim being otherwise found in order and complete in all respects.

ED
 The Trust shall pay to the lending institution interest on the eligible claim amount at the prevailing Bank Rate
for the period of delay beyond 30 days.

R
 For Loans sanctioned after 01/012003, the rest 25 percent will be paid by the Trust on completion of the

R
recovery proceedings / three years from date of obtention of decree. Whichever earlier.

A
 Bank has developed new menu in Finacle to lodge the details of claims lodged with CGTMSE using

M
CLAIMTRN menu. (Ref: circular number BCC:BR:111:464 dated 20.09.2019)

U
---------------------------------------------------------------------------------------------------------------------------------------

K
A
D
PM SVANidhi Scheme' for Street Vendors
N
A
 PM SVANidhi is a Scheme of Ministry of Housing & Urban Affairs for sanction of working capital loan upto
N

Rs. 10,000 to street vendors through the Lending Institutions.

A

 Credit Guarantee Scheme for PM SVANidhi is the graded guarantee scheme under which the credit product
K

/ loan would be guaranteed by CGTMSE.

VE

 On timely or early repayment, the vendors will be eligible for the next loan with an enhanced limit of a
VI

maximum of 200% of the earlier loan, subject to a ceiling of RS. 20000/-

LA

 Tenure of the loan will be maximum of 1 year.

 CGTMSE will not charge any guarantee fee under the Scheme.
U
D

 Mandatory KYC documents Aadhar Card, Pan Card/Form60.

D
YE

 AGE :- 18 years and above*, Maximum Age at the end of tenure of loan: 65 years subject
to legally competent to execute documents
r.
M

(*Note: Earlier it was 21 years)

y:
B
ed
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Page | 59
 5.0 Brief Introduction about Our Bank’s MSME Products

Y1
.(V
5.1 BARODA SME SHORT TERM LOAN

PURPOSE To meet temporary liquidity shortfall/ mismatch in the line of business activity.

Y
This facility is not to be extended for other purposes like repayment of loans of

D
other banks or institutions, unsecured loans etc.

ED
R
BORROWER MSME s in regulatory and expanded. Exclusion sectors: real estate sector,

R
GROUP power sector, education sector it sector.

A
M
ELIGIBILITY 1. Satisfactory credit rating (bob-5 and above) without continuous decline

U
CRITERIA for the last three years and for 4 half years for accounts where credit

K
rating is done on half yearly basis.

A
2. Latest financial documents with satisfactory performance.

D
3. Satisfactory dealings with the bank for at least three years without any
major inspection/audit irregularities
N
A
Min. -Rs.10.00 lakh, max. – Rs. 250 lakh
N
LOAN
AMOUNT
A

Note: Adhoc facility and short term loan cannot be concurrent.

K
VE

PERIOD 12 months including moratorium period.

VI
LA

DLPs Sanctioning powers vested with Regional Manager and above only provided
there is no Ad Hoc excess is allowed in the account and conduct of the account
U

is satisfactory.
D
D

(More detail please refer our latest DLP circulars i.e. BCC:BR:111/288 dated
YE

20.06.2019 & BCC:BR:104/178 dated 22.05.2012 & latest global credit

exposure management policy)
r.
M

Time limit Maximum 10 working Days

y:
B

Ref:  BCC:BR:109:119 DATED 28.02.2017

ed

 BCC:BR:111/288 dated 20.06.2019

 BCC:BR:104/178 dated 22.05.2012
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 Latest Global Credit Exposure Management Policy

Page | 60
 5.2 SME MEDIUM TERM LOAN

Y1
Purpose To augment enterprises’ working capital gap and to help in improvement of

.(V
current ratio and also for meeting genuine business requirements.

Y
The facility will also be available for repayment of secured and unsecured

D
Loans of other banks or institutions, but not for any purpose, which is not
related to the enterprises activity.

ED
R
Borrower MSMEs in Regulatory and Expanded.
Group

R
All other entities with their annual sales turnover of Rs. 1/- Crore to Rs.

A
250/- crores.

M
U
In case of new projects, where the estimated sales turnover in the first full
year of commercial operation (12) months is up to Rs. 250 crores.

K
A
For real estate projects, where project cost is up to Rs. 50 crores.

D
Eligibility
N
Satisfactory credit rating without continuous decline for the last three years
A
Criteria and for 4 half years for accounts where credit rating is done on half yearly
N

basis.
A

Latest financial documents with satisfactory performance in terms of sales /

K

turnover and profits. Negative variance, if any, should not be more than
VE

10%.
Satisfactory dealings with the Bank for at least three years without any
VI

major inspection/audit irregularities.

LA

Loan amount Min-Rs. 25.00 lakh

Max-Rs.500 Lakhs
U
D

Not exceeding –36- months, to be repaid in equal quarterly or half-yearly

D

Period
instalments.
YE

Rate of As per credit rating for the additional Loan to be granted under the
r.

interest Scheme.
M

Prepayment penalty of 1%, if loan is prepaid within -24- months of draw

y:

down.
B

Ref:  BCC:BR:109:119 DATED 28.02.2017

ed

 BCC:BR:111/288 dated 20.06.2019

 BCC:BR:104/178 dated 22.05.2012
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 Latest Global Credit Exposure Management Policy

Page | 61
 Y1
.(V
5.3 BARODA VIDYASTHALI LOAN

Y
Parameter Guidelines

D
Target group Educational institutions

ED
Eligibility Educational institutions, Schools, Colleges and other education bodies
running education activities (under the purview of state board/ central board/

R
CBSE/ICSE/UGC/AICTE or other such statutory bodies) set up by Firms,

R
company, Trusts, Society etc.

A
Play school exposure limited to Zee school, Euro Kids, Kidzee, World school (
and their franchise)

M
(HUF are not eligible).

U
Nature of Facility Term Loan/Overdraft(Working capital facility can only be given if the Land

K
And building of the Institute is charged to us and it is having fee module

A
facility with us)
 Construction of building including expansion, modernization & renovation

D
Purpose
activities of the education institution for the purpose of education.
N
 Purchase of instruments meant for imparting Education / Training to the
A
students.
N

 Finance for purchase of land alone is not permissible. However, if the land
A

cost is included in the total cost of project, the same can be financed. However,
K

land cost should not be more than 20% of the total project cost and an
VE

undertaking to be obtained that building construction will be completed within a

period of 2 years.
 Overdraft for meeting short term fund requirements based on Cash budget
VI

provided the institution is profit making and does not have any other Bank
liability.
LA

 Vehicles can be financed under the scheme for the use of the institutions
(guidelines as per CV finance product).
U

Activity clearance guidelines are not applicable for vehicles finance. Any school/
D

college bus funding to be guided by Commercial Vehicle finance product

D

program.
YE

Limit For Term Loan

Minimum: Rs.25.00 Lakhs Maximum: Rs. 15.00 Crores
(Rs 25.00 Crores for Mumbai/ Greater Mumbai, Delhi-NCR, Bangalore,
r.

Hyderabad)
M

(Bus funding limit is maximum Rs. 2.00 crores, as per CV guidelines)

y:

For Overdraft
B

Maximum – Rs. 3.00 Crores (Rs 5.00 Crores for Mumbai/ Greater Mumbai and
Delhi-NCR) or 60% of expected total fees collection, whichever is less. (As per fee
ed

collection schedule i.e. monthly, quarterly, half yearly or annually).

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Page | 62
 Security  Equitable mortgage of Land & Building of educational institute (not agricultural
land).

Y1
 Where land & building of an educational institution cannot be mortgaged due to
restriction from AICTE, Local Govt. Laws/guidelines alternate collateral security

.(V
(land & building – not agricultural land) in the name of the institution or
promoters of the institution of at least equivalent value to be obtained.
However, an undertaking to be obtained from the borrower that no charge will

Y
be created on the property belonging to the educational institution and the

D
same to be kept under negative lien.

ED
 Equitable mortgage of Land standing in the name of the promoters and
leased out to school /college, equitable mortgage of leasehold rights of

R
the school/college on the building may be permitted subject to clear title

R
of the property by the Zonal Legal Dept./Empanelled Advocate as
applicable. The lease period should not be less than 30 years.

A
M
 Hypothecation of Instruments & Equipment acquired out of the loan and other

U
assets of the Educational Institution.

K
 Personal guarantees of the Promoters/Promoter directors/ key promoting

A
trustees/key persons of the Institution.

D
 Borrower has to mandatorily open a DSRA (Debt Service Reserve Account)
N
account with our bank where Amount equivalent to 3 month Principal +
A
Interest is to be kept in the DSRA account and charged to Bank as security.
N


A

When credit facilities exceed Rs.5.00 Crores, Collateral security level

should not be less than 40% by way of Land & Building other than
K

college/school property/ other liquid securities acceptable to the bank to

VE

be obtained..


VI

Credit Facilities up to Rs.5.00 Crores, Collateral security level should be

at-least 60% by way of immovable securities/ liquid securities.
LA

 Existing schools with more than 5 years establishment and 1000

students, progressive financials – Collateral security to be minimum 25%.
U
D

 Any deviation in collateral coverage condition or waiver of personal

D

guarantee will be under authority of ED only.

YE

 Valuation:

 Branch to obtain a valuation report on the property from Bank approved valuer.
r.

Further, the valuation is to be done once in three years. Valuation fee is to be

M

borne by the applicant.

y:

 Title clearance report :

B

 It should be obtained from the approved advocate of the bank before creation
ed

of the equitable mortgage.


ad

Note: As regards valuation of property and obtaining of title clearance report,

bank’s guidelines from time to time to be complied with.
Margin Overall minimum margin of 25% of cost of Project.

Page | 63
 Ref:  BCC:BR:109:119 DATED 28.02.2017
 BCC:BR:111/288 dated 20.06.2019

Y1
 BCC:BR:104/178 dated 22.05.2012
 Latest Global Credit Exposure Management Policy

.(V
Rate of Rate of Interest
Interest(Both Term  Up to Rs. 5.00 Crores would be linked to CMR ranking circular
Loan /Overdraft) BCC/BR/110/304 dated 11.06.2018. However, additional risk premium of

Y
0.75% (75 basis points) would be charged over and above the applicable

D
rate based on CMR based pricing.(Institution land & building not to be

ED
considered as security for the pricing purpose under CMR)
 For exposure above Rs.5.00 Crores- rate of interest would be applied
based on Composite rating (CR). However, sanctioning authority may give

R
discount up to 0.75% (75 basis point) in applicable rate of interest.


R
For any loan for school bus/Van, rate of interest and other charges to
be applicable as per CV finance product program. (Circular no.

A
BCC/BR/110/390 dated 01.08.2018)

M
U
Repayment Period Maximum 84 months (including maximum moratorium up to 2 years) subject to

K
annual review. Repayment period to be decided based on the project cashflow.

A
Documentation  D.P. Note (as per constitution of borrower).

D
 Letter of installment with acceleration clause.
 N
Letter of continuing security in case of Overdraft.
A
 Hypothecation of instruments and other equipment/ items as the case may be.
N
 General form of Guarantee signed by the Guarantors.

A

Undertaking from the borrower to exclusively deal with our Bank.

 An undertaking from the borrower declaring that he does not owe any overdue
K

statutory dues.
VE

 Copies of licenses / approvals received from concerned authorities required for

running the Institution.
VI

 Other documents as per constitution of the borrower.

 General/CIBIL undertakings etc. as per bank’s guidelines.
LA

 NOC from Govt. Dept., charity commissioner etc. as may be required.

Creation of EM & registration with CERSAI as per extant guidelines.
U
D

Disbursement of 
Direct to equipment suppliers in case of financing of equipment.
D

Termloan 
For other purposes, based on CA/Architect’s Certificate and after inspection as
YE

per bank’s extant guidelines.

Assessment and up to Rs.3.00 Crores Zonal Head
operation of OD
r.

limit Above Rs.3.00 Crores ED

M

 OD Limit to be allowed only to existing profit making institutions without any other
bank liability for meeting short term liquidity requirement against fee receivable
y:

and/or security of mortgage of assets in the name of the institution or promoters

B

of the institution as the case may be.

 Borrower should mandatorily have/ should register immediately post
ed

disbursement for our school fee module from our bank.

 Assessment on cash budget system (as per fee collection schedule i.e. monthly,
ad

quarterly, half yearly or annually with a margin of 25% on the peak deficit.)
 Facility to be brought to credit balance at least once in a year.
 Facility to be brought to credit balance at least once in ayear.

Page | 64
 Insurance Security/ Property, charged/ mortgaged should be insured as per bank’s Norms.

Y1
Unified Processing As per the applicable charges.
charges

.(V
Financial Ratios Current Ratio- Not Applicable as limit is to be ascertained by cash
budgeting method.
DE Ratio TTL/TNW 3:1
TOL/TNW 4.5:1

Y
DSCR ( for TLs) Average 1.75

D
DSCR should not go below the level of 1.25 in any particular year.

ED
TEV Study TEV Study, irrespective of the project cost, may not be carried out as educational
institutes’ projects do not require technical expertise. The detailed financial appraisal

R
of the project should, however, to be carried out and satisfied upon by the
sanctioning authority and should form essential part of

R
approval.

A
Activity Clearance Powers for activity clearance as under.

M
All educational institutes (school/colleges/university) to be covered under this

U
scheme only.

K
Commitment  As per bank guidelines

A
Charges


D
Other conditions Financial Deviations, if any, once approved shall continue only for review/
review with decrease cases where there is no deterioration in the financial
N
health of the company. However deviation needs to be taken, if any, in case of
A
Review with increase.
N
 Audited Balance Sheet and Profit & Loss or income – expenditure statement for
the last 3 years in case of existing Institution.
A

 Project report in case of new Project.

K

 Credit rating of the account to be carried out as per bank’s extant guidelines and
VE

the borrowers with credit rating of BOB-6 and above only to be financed under
the Scheme.
 All other terms and conditions as per bank’s extant guidelines issued from time
VI

to time.
 Min. overall security coverage should not be less than 125%.
LA

 The scheme will be operative at all the branches.

 Salary accounts of all the staff of the institute to be opened/ transferred
U

mandatorily with our bank.


D

Scholarship accounts of the students to be opened with our bank preferably.

 School fees module of our bank to be taken mandatorily.
D

 Advances under the scheme will be classified as SME Regulatory/SME

YE

(expanded definition) as the case may be.

 For existing unit, not dealing with us and now approached for take-over–
➢ Apart from all takeover guidelines the following should be ensured –
r.

➢ Unit should have at-least 40% of total fees receipt to be routed through banking
M

channel.
➢ Number of students’ year on year are increasing.
➢
y:

Average vintage of teachers should be at-least 3 years (evaluated in line with

the year of establishment of the unit) Minimum Qualification of teachers should
B

also be ensured.
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Page | 65
 APPRAISAL AND EVALUATION:
 The educational Institution should be promoted by reputed persons/eminent

Y1
personalities from the area and the Institution should have the permission from
Education Board/Government authorities for running the courses intended to be

.(V
introduced in the Institution.
 Availability of other infrastructure, good faculty, facilities etc. to be examined and
compared with the availability at other centers operating in the area.

Y
 Overall viability of the project be ensured with proper due diligence by the sanctioning

D
authority.

ED
 In respect of Baroda Vidyasthali Loan, the norms of the scheme including Rate of
Interest are applicable to all new accounts. However the norms of the scheme

R
including Rate of Interest can be made applicable to existing accounts at the time of

R
their regular review only.

A
 At the time of review the institutions accreditations to be verified and in case of

M
revoking of the accreditation of the institution, the facilities to be recalled immediately.

U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
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 Y1
.(V
5.4 BARODA AROGYADHAM LOAN

Y
D
Parameter Guidelines

ED
Eligibility SMEs as per regulatory/ expanded definition given below:
 Micro, Small and Medium Enterprises – as per regulatory definition irrespective of

R
geographical location, i.e. rural, semi-urban, urban, metro areas and irrespective of
Borrower’s Constitution i.e., Individuals , partnership, Trust, Pvt. Ltd., Public

R
Ltd. etc.,

A
Note:

M
1) Real Estate Projects are not eligible
2) Promoters /owners should not be HUF.

U
K
Note:

A
At-least one of the Promoters/ Director( in case of non-individual) / Doctors should have

D
requisite qualification in any branch of medical science from a recognized University like
MBBS/MD/BDS or any degree in physiotherapy/radiology etc
N
A
The powers to waive this condition (in case of non-individual) may be exercised by
N

Regional Head on case to case basis with a condition that unit should employ qualified
A

professionals/ Doctors to run the Hospital/Nursing Home / Pathological

K

/DiagnosticCenterswhoshouldhaverequisitequalificationinanybranchofmedical science
from a recognized university and should have minimum 2 years of experience.
VE

Doctors to be registered in the state/medical council of India.

VI

Purpose  Setting up/ Purchase of ready possession of new Nursing

LA

Home/Clinic//Hospital/Pathological Laboratory/Diagnostic Centers.

 Expansion/renovation/modernization of existing Nursing Home/Clinic/Hospital
U

/Pathological Laboratory/Diagnostic Centers.

D

 Purchase of new medical diagnostic equipment as also office equipment, viz.

D

computers, air conditioners, office furniture etc.

YE

 Setting up of operation theatre

 Purchase of new ambulance
r.

 To meet working capital requirements including stock of medicines.

M

 Construction of rest house, staff quarters Note:

y:

In case of the account of Trust permission of local govt. authorities may be

obtained before disbursements.
B
ed

Nature of Demand / Term Loan, Overdraft, L/C, B/G (Working capital facility can only be given if the
facility Land and building of the hospital is charged to us.)
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Page | 67
 Limit Minimum Rs. 0.05 Crores

(Rs. In Crores)

Y1
Rural 0.25
Semi Urban 6.00

.(V
Urban 12.00
Metro 30.00
Notes:

Y
 Need based Working Capital limits may be considered up to 10% of the annual sale or

D
gross income, subject to 20% of the above ceiling limit in case of borrowers requiring

ED
both Term Loan and working capital facilities.

 In case of only working capital requirements, limit to be restricted to 20% of the above

R
ceiling limit.

R
 Working capital limit to be allowed by way of Overdraft.

A
M
Security Demand Loan / Term Loan :

U
 Equitable mortgage of Land & Building/premises of Nursing Home/Clinic/Hospital

K
 Hypothecation of medical equipment/office equipment acquired out of loan amount.


A
Personal guarantee of Promoter Director in case of Limited Companies, partners in

D
case of partnership and Trustees in case of Trusts.
 Extension of charge on the assets in case of existing Nursing Home/Hospital going in
N
for modernization/ expansion/ renovation.
A
N
Working Capital :
A

 Hypothecation of medicines, receivables and other chargeable current assets.

K

 Extension of charge on fixed assets, both movable and immovable.

VE

Collateral :
Charge on unencumbered assets of Promoter Directors in case of Private Limited
VI

Companies, or any other collateral by way of FDR, mortgage of properties in the

personal name of the relatives of Promoters, etc. as may be available
LA

Borrower has to mandatorily open a DSRA (Debt Service Reserve Account) account
with our bank where Amount equivalent to 3 month Principal + Interest is to be kept in
U

the DSRA account and charged to Bank as security.

D
D

Note:
 A) If finance is up to Rs.5.00 Crores, the sanctioning authority to decide on level of
YE

collaterals on case to case basis.

 B) If finance exceeds Rs.5.00 Crores, Minimum immovable security coverage by way
r.

of land and building ( including primary) and CGTMSE cover (wherever applicable and
taken )of 140% % should be obtained (No HUF property be obtained as collateral
M

security) otherwise deviation to be taken from next higher authority.

 C) All cases upto Rs. 5.00 Crores which are eligible for CGTMSE should be covered
y:

under CGTMSE scheme. (We may not ask for CGTMSE cover where hard security
B

coverage is above 75%).

Margin - 25% (on the project cost) on the chargeable assets as per Project details Where
ed

collateral security coverage from immovable properties/liquid securities like FDR/

NSC/KVP/LIC etc. is more than 50%.
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30% in all other cases.

Page | 68
 Assessment Demand Loan/Term Loan:
of limits 75% of the cost of chargeable, movable, immovable assets as per Project details - Where
collateral security coverage from immovable properties/liquid securities like FDR/

Y1
NSC/KVP/LIC etc. is more than 50%.
70% in all other cases.

.(V
Working Capital:
Need based up to 10% of the annual sale or gross income, subject to 20% of the overall

Y
limit approved for the Institution.

D
ED
Rate of  UptoRs.5.00 crores would be linked to CMR ranking circular BCC/BR/110/304
Interest dated 11.06.2018. However, additional risk premium of 0.25% (25 basis points)

R
would be charged over and above the applicable rate based on CMR based
pricing.

R
 For exposure above Rs.5.00 Crores- rate of interest would be applied based on

A
Composite rating (CR).However, sanctioning authority may give discount upto

M
0.80 % (80 basis point) in applicable rate of interest.

U
Repayment Demand Loan/Term Loan

K
Period 35 months to 84 months including moratorium, subject to annual review.
Note :

A
Repayment period to be decided based on projected cash flow.

D
Documentat Demand Loan/Term Loan
ion N
D.P. Note (as per constitution of borrower).
A
Letter of installment with acceleration clause.
N
Hypothecation of instruments and other equipment/ items as the case maybe.
Hypothecation of vehicle in case of finance for ambulance.
A

Blank TTO form.

K

Memorandum of entry for creating equitable mortgage of fixed assets.

VE

 Working Capital (Overdraft)

VI

D.P. Note (as per constitution of borrower).

LA

Letter of Continuing Security.

Hypothecation Agreement.
U

Undertaking from the borrower to maintain the current assets at the level of 125% of
D

drawings at any point of time.

D


YE

Common Documents
General form of guarantee signed by the Guarantors.
An undertaking from the borrower to exclusively deal with our Bank.
r.

An undertaking from the borrower declaring that he does not owe any overdue
M

statutory dues.
Copies of licenses / approvals received from concerned authorities required for
y:

running the Institution.

B

Other documents as per constitution of the borrower.

General/CIBIL undertakings etc. as per bank’s guidelines.
ed
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Page | 69
 Disburse-  Direct to equipment suppliers in case of equipment/ machineries.
ment  For premises, based on the progress and inspection report, to the seller/builder
as the case may be.

Y1
 In case of outright purchase of premises for clinic/nursing home, ready for
possession – Disbursement in one installment, directly to the seller.

.(V
Note :
In case of disbursement of loan on reimbursement basis, prior approval of the

Y
sanctioning authority be obtained.

D
Insurance Security/ Property, charged/ mortgaged should be insured as per bank’s norms.

ED
Processing/ Applicable charges as per bank guidelines.
Up-front &

R
Documentati Applicable charges as per bank guidelines.
on charges

R
Financial DE Ratio TTL/TNW 3:1

A
Ratios TOL/TNW 4.5:1

M
DSCR Average 1.75

U
Current 1.17
Ratio*

K
* Current Ratio 1.17 to be assessed only in case of WC facilities i.e. in case of only TL,

A
assessment of current ratio is not required.

D
* In case current ratio is below defined benchmark only due to term loan installment being
N
considered as current liability, it should not be treated as deviation, if the projected and
A
accepted DSCR is above 1.25 for next year. i.e. Projected cash generation is more than
projected installments of TL and maintaining DSCR of 1.25. Term Loan Installments
N

should not be considered as current liability for the MPBF purpose in this product.
A
K

 DSCR should not go below the level of 1.25 in any particular year.
VE

 Operating Profit Margin (before Interest, Depreciation & Tax) not to be below 10% of
sales.

VI

Minimum Interest coverage ratio should be 2.

 (Deviations once approved shall continue only for review/ review with decrease
LA

Cases where there is no deterioration in the financial health of the company. However
deviation needs to be taken, if any, in case of Review with increase.)
U

TEV Study TEV study to be carried out as per bank’s extant guidelines.
D

Classification The advance under the Scheme to be classified as Small Enterprise or Medium
D

Enterprise as per the regulatory definition, depending upon the investment in equipment
YE

(in case of investment up to Rs. 5/- crores).

In case of investment exceeding Rs. 5/- crores but turnover/income being less than
Rs. 250/- crores, account will be classified as SME (expanded) as per bank’s internal
r.

definition.
M
y:
B
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 Other
conditions  Audited Balance Sheet and Profit & Loss or income – expenditure statement for the
last 3 years in case of existing Institution.

Y1
 Project report in case of new Project.

.(V
 Credit rating of the account to be carried out as per bank’s extant guidelines and
the borrowers with credit rating not less than ‘BOB 6’ as per CRISIL model only
to be financed under the Scheme.

Y
D
 All other terms and conditions as per bank’s Global Credit Exposure Management

ED
Policy and other extant guidelines.
 Stock/Book Debts statement to be obtained once in a year.

R
 For takeover of the accounts, all extant take over norms to be complied in full;

R
 For advances to Registered Trusts, approval of Charity Commissioner for creation of

A
equitable mortgage of the trust properties as well as guarantees of the trustees as per

M
extant guidelines, etc, are to be obtained;

U
 Report of Credit Bureau to be accessed on the promoters/partners/directors/trustees

K
from consumer data;

A
a) In case of Individual, bureau score should not be below 700. 0 or -1 can be

D
considered.
N
In case of Non-individual, CMR ranking to be taken into consideration and the same
A
should not be below the rank of CMR -6 wherever applicable.
N


A

In case of sole lending, borrower to mandatorily open current account with our bank
(where working capital is not availed) and route all the proceeds through that account
K

only.
VE

 Borrowers to route the income through their overdraft/ current account with our bank.
VI

 If the annual credit summations (trailing 12 months) are less than 2.5 times of the WC
limit, penalty of 0.25% of the limit shall be levied subject to maximum of Rs. 100000/-
LA

per annum.
The same shall be reckoned as on the due date of next review/renewal.
U
D

 Credit Information report (CIR) on promoters or their existing hospitals/business be

D

obtained from their existing financiers wherever applicable.

YE

 In case of Company, charges to be registered with ROC.

 Collateral free loans upto Rs. 200/- lacs are eligible for guarantee cover under
r.

CGTMSE. The provisions of the scheme will be applicable for these advances.
M

 Salary accounts of all the staff of the hospital/clinic to be opened/ transferred

y:

mandatorily with our bank.


B

Branch to endeavor to display bank’s name as financier from publicity angle.


ed

Financial Deviations once approved shall continue only for review/ review with
decrease cases where there is no further deterioration in the financial health of the
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company. However deviation needs to be taken, if any, in case of Review with

increase.

Page | 71
 APPRAISAL AND EVALUATION:

Y1
The Nursing Home/Hospital should be promoted by reputed/eminent Doctors from the area and the
Institution should have the permission from Medical Board/Government authorities/Municipal
Authorities for running the Nursing Home/Hospital. Provisions for waiver are detailed above.

.(V
 Cost of Project, availability of other infrastructure, staff, facilities etc. to be examined and compared
with the availability at other Nursing Homes/Hospital of similar size and facilities, operating in the
area.

Y
 Other Condition – If Medical Council of India Revokes the license of any Doctor/ Hospital, facilities to

D
be recalled immediately

ED
R
5.5 BARODA PROPERTY PRIDE

R
No. Parameter Guidelines

A
1 Target Group  Micro, Small and Medium Enterprises – as per regulatory definition and

M
non – regulatory definition in Manufacturing, Services & Trading

U
irrespective of geographical location, i.e. rural, semi-urban, urban, metro

K
areas.

A
 Individuals/ Units engaged in trade of any commodity / goods in physical

D
form required by the community and trading in them is not prohibited by
N
law or opposed to public interest.
A
N
A

HUF as a proprietor/partner/LLP & Public Limited Companies are not eligible

K

(Real Estate projects and educational institutions are outside the purview of
VE

the scheme)
VI
LA
U
D
D
YE
r.
M
y:
B
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Page | 72
 2 Eligibility  Minimum Age: 20 years
 Maximum Age: 65 years at the time of end of the tenure of the loan.

Y1
 The business units should be profit making for the last 2 years.( as per
Audited financials, wherever applicable)

.(V
For a partnership firm/ proprietorship, PBT (Profit before Tax) will be

Y
considered after adding remuneration to partners/ proprietor and interest on
partner’s capital.

D
 Units established by our existing Current Account or Advance Account

ED
customers with satisfactory dealings for the last -1- year or their close
relatives can be considered, even if these are established for less than -

R
2- years.

R
 Other cases of units having less than -2- years establishment can be

A
considered with the prior approval of RMCC
 In case of Dealers in Silver/Gold Jewellery, finance should not be made

M
available to traders dealing in bullion / raw gold.

U
Borrowers to comply with the Licensing requirement for the business.

K
Activity clearance for gems and jewellery to be taken from the Vertical

A
Head at BCC

D
 Activity Clearance to be obtained for rest of the applicable activities/
N
industries as per bank’s extant guidelines.
A
N

List of Close relatives:

A

Spouse, Father, Mother (including step mother), son (including step son),
K

Son’s wife, Daughter (including step Daughter), Daughter’s husband,

VE

Brother’s wife, sister (including step sister) of spouse, Sister’s husband,

Brother (including step brother) of spouse.
VI

Property should not be in the name of HUF.

LA

Nature of
3 Overdraft / Term Loan / Non Fund Facility
Facility
U
D
D
YE
r.
M
y:
B
ed
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Page | 73
 4 Purpose  Overdraft: Working capital requirements
 Term Loan:

Y1
A) For Traders -
 Development of shop

.(V
(Purchase of equipment, Computer, Air-Conditioner, Furniture etc.; but not
for purchase of shop, for need based requirements subject to a maximum
of 25% of the working capital limit sanctioned.(If a firm is enjoying any other

Y
working capital limit from other FIs, same should be included to arrive at

D
limit assessed)

ED
B) For other units –
Purchase of Plant and machinery/ Equipment; repair/renovation of factory

R
land and building; other incidental CAPEX as per business needs.

R
(Greenfield projects not to be covered).

A
M
 Non-fund based facilities (Letter of Credit & Bank Guarantee):

U
- Non fund facility can be considered over and above the Working capital

K
/ Term Loan limit, but within the limit assessed based on value of

A
securities and upto the specified maximum limit under the scheme.

D
- However, if requested non fund based limit can be accommodated
separately based on projected turnover or offered securities, the same
N
can be considered as a sub limit of working capital limit.
A
N

Activity Clearance to be obtained from Corporate Office / Zonal authority

A

wherever applicable for activities / industries as per prevailing Banks

K

guidelines.
VE
VI

5 Limit  Minimum:
(Ticket Size) Rs.2.00 Lacs (Rural / Semi Urban Branches) Rs.5.00 Lacs (Urban / Metro
LA

Branches)
(Existing accounts with limits less than the minimum stipulation can be
U

continued under the scheme)

D

➢ Maximum:
D

– Metro branches : Rs.10.00 Crores

YE

– Urban branches : Rs.5.00Crores

– Semi Urban branches : Rs.3.00Crores
–
r.

Rural branches : Rs.1.00Crores Assessment of Working Capital

limit:
M

The credit limit upto Rs.5.00 Crores is to be considered as under:

y:
B
ed
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Page | 74
 Maximum 25% of the accepted projected Sales subject to verification of
GST return of the previous years / quarters or 1st method of Lending

Y1
whichever is higher. (If a firm is enjoying any other working capital limit
from other FIs, same should be reduced to arrive at limit assessed

.(V
under above mentioned turnover method.)

Y
OR

D
Advance Value of property to be charged, whichever is lower.

ED
EXAMPLE-

R
a) Projected Sales Turnover: Rs. 50.00 Crores.
b) Working Capital Limit (As per turnover method): Rs. 12.50 Crores

R
(25% of accepted projected sales).

A
c) Realizable value of the Property given as security: Rs. 2.00 Crores.

M
d) Advance value of the Property: Rs. 1.20 Crores (After deducting

U
margin

K
i.e. 40% of the realizable value).

A
e) Eligible Working Capital Limit: Rs. 1.20 Crores.[(b) or (d) whichever is

D
lower].
N
The credit limit above Rs.5.00 Crores is to be considered as under: As
A
per MPBF1st Method.
N
OR
Advance Value of property to be charged, whichever is lower.
A
K

Assessment of Loan for Shop Development:

VE

Need based finance to be considered as per requirements subject to a

maximum of 25% of the total working capital limit availed including any
VI

other WC availed from other FIs.

LA

However, all facilities together with our Bank should not exceed advance
U

value of properties or maximum limit specified for the scheme.

D
D

Note: In case of Overdraft facility to dealers of Gas agencies /

YE

Petroleum filling stations/Pumps, while assessing the working capital

requirements, need based amount to be considered based on the
capacity of the godown / fuel storage tank etc. As such, in such cases,
r.

assessment of working capital should not be done purely based on the

M

sales turn over/ projected sales, but we may consider the actual working
y:

capital requirement based on the godown/ fuel storage capacity

B
ed
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Page | 75
 6 Bureau score  Credit Bureau verification for Proprietor / Partners / Directors to be
based carried out.

Y1
validation
(For fresh (Consumer Bureau–CIBILTransUnionScoreunderversion-1/CRIF

.(V
sanctions and
enhancements) HIGHMARK).
 Cut Off on CIBIL/CRIFHIGHMARK score will be at 701 and shall be
assessed as whichever is higher.

Y
 For Partnership Firm or Pvt. Ltd Company, all the partners /

D
directors should have minimum Credit Bureau ‘Cut Off’ score for

ED
considering fresh exposure.
 Score 650 to less than 701: Deviation decision with RMCC.

R
 Less than 650: Deviation decision with ZOCC.
 (-1)Can be considered by the sanctioning authority with proper

R
justifications.

A
M
At the time of review, In case of Term Loans & Demand Loans,

U
deviations in Credit Bureau score, if any, need not to be referred to

K
deviation authority as mentioned above.

A
Guidelines for wilful defaulters/Fraud Accounts/ promoters, Directors of

D
such companies settled under compromise/write off with respect to
N
BCC:BR:111/51 dated 30.01.2019 to be followed.
A
In other cases,
N

Credit Card default of Proprietor / Partners / Directors:

A

Cases where credit card account status write-off / settlement

K

involving amount upto Rs.25,000/- No deviation is required (in

VE

case of fresh, review with increase & takeover proposals)

Cases where credit card account write-off / settlement involving
VI

amount above Rs.25,000/- took place in the past: Deviation

powers rest with the authorities asunder:
LA

Parameter Authority
U

For proposals falling up to the powers of RMCC ZOCC

D

For proposals falling under the powers of ZOCC COGM

D

(BCC)
YE

In case of review of accounts, sanctioning authority may take a view in

r.

all such cases without referring for deviation.

M
y:

While accepting the credit card account write-off / settlement above

B

Rs.5000/- sanctioning authority to ensure the following:

 No Due certificate from the Bank / FIs be obtained in respect of
ed

credit card account

ad

 Borrower is impressed upon for updation of‘ satisfactory status with

the concerned Bank / FIs, preferably within stipulated period.

Page | 76
  Ensure that ‘Bureau Report’ of the applicant/s contains no other
adverse remarks.

Y1
 In case of multiple deviations in Bureau score which are to be
considered at various levels (i.e. one at RMCC & another at

.(V
ZOCC), all the deviations in Bureau score to be considered at
higher level (i.e. ZOCC).
7 Rate of Interest Upto Rs. 5.00 Crores would be linked to CMR ranking circular

Y
BCC/BR/110/304 dated 11.06.2018. However, additional risk

D
premium of 1.00% (100 basis points) would be charged over and

ED
above the applicable rate based on CMR based pricing.

R
For Rs. 5.00 Crores and above:

R
The pricing is linked with Internal Risk Rating :

A
 For BOB–1to BOB–4rated accounts: MCLR -1 year + Strategic

M
Premium + 1.50%
 For BOB – 5& BOB – 6rated accounts:

U
K
MCLR -1 year + Strategic Premium + 2.00%


A
For below BOB – 6rated accounts:

D
MCLR -1 year + Strategic Premium + 3.50%
 N
No fresh exposure below BTL/BOB-6
A
N
Note:
A

– In case of accounts having rating below BTL/BOB-6, applicable

K

ROI will be with maximum spread as per the product.

VE

At the time of Review:

VI

 At the time of annual review of accounts (with respect to sanction

LA

date), the Risk based pricing linked to Internal rating of the

borrowers and Bureau score validations for Proprietor / Partners /
U

Directors to be applied.
D

As such, effective ROI from the date of review will be based on the
D

Internal Rating/ CMR based pricing of the borrower. The credit

spread based on the Internal Rating/ CMR pricing prevailing at the
YE

date of review shall be applied.

r.
M

8 Repayment Loan: Maximum 60 months (depending on repayment capacity).

Period
y:

Overdraft: 12 months, subject to annual review

B

9 Credit Rating /  Internal Credit Rating to be done at the time of sanction and
Cut off subsequently as per bank guidelines.
ed

 Facilities up to Rs. 2.00 Crores to be rated under Rating Model- BTL

Model for trading units, hosted in LAPS
ad

 Facilities upto Rs.2.00 Crores to MSME (excluding trading) to

berated under MSME Model

Page | 77
  Facilities of more than Rs.2.00 Crores to be rated on BOBRAM as hitherto.
Internal Credit Rating cut off:

Y1
Limits up to Rs.2.00 Crores – BTL/MSMEBOB Rating: BTL-6/ MSMEBOB-6

.(V
Limits above Rs.2.00 Crores - BOBRAM Rating:BOB-6
No fresh exposure below BTL-6 / BOB-6/MSMEBOB-6

Y
D
ED
10 Security & Margin :
Margin  40% on Realizable Value of Residential/ Commercial Property.

R
 50% on realizable value of Industrial property.

R
A
Security:

M
(I) Mortgage of Immovable Properties:
- Residential Property (House /Flat)

U
- Commercial property (Office/Shop/Show room etc.)

K
- Plot of Land (not agricultural land)

A
- Allotted within Development Authority/ Should be within Municipal

D
limit
N
- industrial Property (Factory Land and Building): Based on CMR
A
Rank, the sanctioning / Deviation authority for any loan amount
N

requested under this scheme, will be as below:

A

CMR Rank Sanctioning Authority

K

CMR 1 to 6 As per DLP

VE

CMR 6 to 10 As pet DLP

Note: Deviation to be
VI

taken from COCC-ED

before sanction.
LA

In case of Industrial Property, the property should be in the name of MSME unit
U

or promoter / Director only. No third party property is allowed in this case.

D

Only Immovable properties with well demarcation are to be considered as

D

security for Mortgage under this scheme.

YE

➢ In case plot of land within the municipal/ panchayat limits, should be

r.
M

identifiable by boundaries / demarcation and should be marketable.

➢ In case of any type of Tenanted properties, adequate measures to be
y:

taken to safeguard Bank’s interest. Guidelines of Circular No.

BCC:BR:106/406 dated 14.10.2014 issued by Legal Department, BCC
B

regarding precautions to be taken while accepting tenanted property as

ed

security should be followed scrupulously.

ad

➢ Normally, property standing in the name of Borrower (including

Partnership firm/ Private Limited Companies), Proprietor, Partner, Director
or their close relatives is to be mortgaged.

Page | 20
 ➢ In case the property is generating rental or other income, then it should
be ensured that repayment of the loan is not out of such cash flows from

Y1
that property.
➢ School and College properties should not be accepted for security

.(V
purpose.

The property standing in the name of third party can also be accepted, provided

Y
the owner of property offers his / her personal guarantee.

D
ED
➢ Periodical asset verification to be done as per extant guidelines i.e.
once in a year.

R
R
II) National Savings Certificates, Government Bonds, our Bank’s Term

A
Deposits and Assignment of Life Insurance Policies etc. standing in the

M
name of the Borrower / Proprietor / Partner / Director only.

U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
ad

Page | 21
 Margin:

Y1
 10% on Bank’s own FDRs.

.(V
 15% on the surrender value of Life Insurance Policies, I f the insurance
policy is maturing within a period of less than 3 years & 20% of
surrender value of Life Insurance Policy, if the residual maturity period

Y
is 3 years and above.

D
 15% of face value of NSC/KVP/Government Bonds etc., if residual

ED
maturity period is less than 3 years & 20% of face value of NSC/ KVP/
Government Bonds etc., if residual maturity period is 3 years or above
etc.

R
 In case of KVPs, if the collateral security offered is more than Rs. 1.00

R
lacs. The same should be sanctioned by RMCC.

A
M
Valuation of Property:

U
 The property being accepted as security should be got valued by our

K
Bank’s approved valuer at the time of considering the facility.

A
 Further, the valuation is to be done once in -3- years.

D
 In case of Limit above Rs.1.00 Crore, 2nd valuation of the property also
N
to be obtained and to be satisfied upon.
 In case of any property valued at Rs. 5.00 crs and above, two valuation
A
N
reports to be obtained.
 But in any case, maximum two valuation reports are sufficient for
A

calculation of eligibility.
K

 The lower of the two valuations to be considered while calculating the

VE

Limit.
 In case of properties acquired within last -3- years, amount of
VI

Registered Sale Deed should be taken as value of the property.

 If the present Realizable value is higher than the Registered value
LA

(Registered within last 3 years) and if it requires to consider present

Realizable value as value of property, for any reason, prior permission
U

from Regional Authority to be obtained for the same and justification for
D

the same to be incorporated in appraisal.

D
YE

Age of Property
r.

a.) In case of loans:

M

 Age of property should not be more than -25- year sold.

 Building less than 25 years old: Guidelines as applicable to general
y:

advances to be allowed.
B

 Older than 25 years: RMCC is the authority for considering the

ed

deviation. Further, branch will be required to carry out inspection of the

property every year at the time of review
ad

 However, the property, which is older than -20- years but not more than
-25- years, Branch to ascertain structural soundness of the property by
obtaining an Approved Engineer’s certificate ,certifying
structural soundness and expected residual life of the building, which

Page | 22
 should be at least -5- years more than the repayment period of the
loan.

Y1
 For dwelling units which are older than -25- years, Regional Head
may authorize such cases on selective basis, subject to ascertaining

.(V
structural soundness of the building by obtaining an Approved
Engineer’scertificate,certifyingstructuralsoundnessandresiduallife of
the building, which should be at least -5- years more than the

Y
repayment period of the loan.

D
ED
b.) In case of overdrafts:

R
 Building less than 25 years old: Guidelines as applicable to general
advances to be followed.

R
 Older than 25 years: The Branch will be required to carry out

A
inspection of the property every year at the time of review of facility

M
and obtain structural soundness report from Architect every 3rd year

U
along with valuation of the property.

K
 In case any defect is observed during inspection of the security or in

A
Architect’s Report, Branch will be required to ensure substitution of

D
the security having requisite value immediately or ensure liquidation
ofthefacilityattheearliestbutnotlaterthan12monthsperiodinany case.
N
A
N
11 Sanctioning As per discretionary lending powers of Branch / SMELF / RO, as the
Authority case may be.
A
K

Since this Loan being a business loan per party / group discretionary
VE

lending powers will be applicable.

12 Documentation  D. P. Note (as per constitution of the Borrower).
VI

 Letter of continuing security (in case of overdraft facility)


LA

Letter of installment (in case of Term Loan/ Reducing Overdraft

facility)

U

**Agreement of Hypothecation of Goods covering Stocks,

Equipment
D

/other items as the case may be, purchased out of bank finance
D

(wherever required).
YE

 Hypothecation of Movable assets for manufacturing units.

 Mortgage / Pledge / Assignment of securities (as per terms &
r.

conditions of the sanction).

M

 General form of Guarantee in case the immovable property charged

to Bank is in the name of other than Borrower/s.
y:

 Undertaking from the Borrower to exclusively deal with our Bank.

B

 Undertaking from the Borrower declaring that he does not owe any
ed

overdue statutory dues like GST, Sales Tax, Income Tax,

Corporation Tax, Professional Tax etc. and has obtained / renewed
ad

licenses from concerned authorities required for trading in the

merchandise / goods every year.
Other documents as per constitution of the Borrower and terms &
conditions of the sanction.

Page | 23
  For Non-Fund based facilities, as per extant guidelines.

Y1
**Note: Agreement of Hypothecation is desirable, though in all the

.(V
cases the same is not compulsory, if the conduct and reputation of the
client is very good in the market. The branches, however, should obtain
an undertaking from the borrower to the effect that the borrower shall

Y
execute the Agreement of Hypothecation as and when required by the

D
Bank, to safeguard interest of the Bank in case of any eventuality arising
at a future date.

ED
13 Insurance For Non-Fund based facilities, as per extant guidelines.

R
R
**Note: Agreement of Hypothecation is desirable, though in all the

A
cases the same is not compulsory, if the conduct and reputation of the

M
client is very good in the market. The branches, however, should obtain
an undertaking from the borrower to the effect that the borrower shall

U
execute the Agreement of Hypothecation as and when required by the

K
Bank, to safeguard interest of the Bank in case of any eventuality arising

A
at a future date

D
N
A
N

5.6 SCHEME FOR PROFESSIONALS

A
K

Parameter Guidelines
VE

Eligibility Professionals in any discipline viz. Engineers, Architects, Interior

Designers, Fashion Designer, Photographers, Financial Consultants
VI

(CA/ICWA/CS/CFA), Advocates and specialized qualified service

providers. Proprietorship / Partnership / Pvt. / Public. Ltd. Companies with
LA

 The borrower should possess a professional degree/diploma in

his/her specialized field from a recognized University/Institute.
U

 Minimum ITR - taxable income of 2.5lakh

D

 Minimum experience of 3 years in their respective fields

D

 In case of CA/CS/ ICWA–3 years from the date of certificate of

YE

practice.
 Minimum bureau score of700
Any loan to the specified professionals would be given under this
r.

scheme only.
M

Purpose  Working Capital Requirement

 Purchase of equipment, Expanding/Renovating Business premises.
y:

 For Construction of office premises on self-owned land.

B

 For acquisition of ready built new office premises on ownership basis.

 Non-fund based facilities ( Bank Guarantee and Letter of Credit)
ed

Age of the  Minimum age – 21years.

borrower ( In case  Maximum age should not exceed 65 years at the time of maturity of
ad

of Individual) loan.
Nature of Facility Term Loan/Demand Loan/Cash Credit/non-fund based facilities.

Page | 24
 Limit Minimum – Rs. 5.00 lakh ( For Rural and Semi-Urban areas)
Rs. 10.00 Lakh ( For Urban and Metro areas)

Y1
Maximum – Rs. 5.00 Crores
Collateral  For loans up to Rs.10.00 Lakh – No collateral should be

.(V
Security insisted, CGTMSE coverage to be taken.
 For loans up to Rs. 2.00 crs–
 CGTMSE coverage is to be taken, where collateral is not sufficient to

Y
cover the exposure..

D
 CGTMSE fees to be borne by the borrower, irrespective of loan

ED
amount.
 For loan amount above 2 crores-

R
 Mandatory collateral security should be 40% of the loan amount,
where land is not a primary security. And where land is one of the

R
primary security- overall Hard Security (including CGTMSE cover if

A
available)should be 75% of the loan amount.
 Realizable value of the property to be taken in to account

M
Above security / Modifications are applicable to new as well as review with

U
increase proposals only, for review of the credit facility, existing guidelines

K
will continue.

A
Repayment Working Capital – To be renewed every year.

D
Term Loan - Maximum 84 installments including moratorium period.
N
Interest to be served every month.
A
Method of For working capital facility: As per First Method of Lending or 20% of
N
Assessment turnover whichever is higher for limits up to Rs.500.00 lacs,
Projected annual turnover to be supported by Quarterly cash flow
A

analysis for the next financial year and the same is to be verified at the
K

time of every review (with relevant supporting documents such as GST

VE

returns/ bank statement).

TL/DL - 75% LTV for purchase of Plant and Machinery/ Movable asset.
VI

70% LTV in case of purchase/ construction/ expansion/ renovation/ repairs

of land and building.
LA

However, in case of purchase of land for construction, the cost of land

should not exceed 50% of the total project cost and the time line for
U

construction should not be more than 3 years otherwise, CRE rate of

D

interest to be charged.
D
YE

Based on the cash flow projections.

Average DSCR for term loan is to be 1.75
Rate of Interest To be linked to CMR ranking circular BCC/BR/110/304 dated 11.06.2018.
r.

However, additional risk premium of 0.25% (25 basis points) would be

M

charged over and above the applicable rate based on CMR based
y:

pricing.
Processing Fees As per bank guidelines
B

For New account –

ed

As per Circular no. HO:BR:111/40 dated 18.02.2019 and /or modifications

thereafter.
ad

For Review –
50% concession in applicable processing charges in term loan at the time
ofreviewoffacilitiescanbeconsideredincaseoftimelyrepaymentforthe past
12 months (i.e. not falling under SMA 1 or SMA2).

Page | 25
 Inspection & As per bank guidelines.
other Charges

Y1
Margin For Cash Credit :
25% against stocks & Book Debts up to 90 days only

.(V
For Term Loan/Demand Loan :
30% on land and building
25% on Plant and Machinery(New)

Y
For non-fund based limits :

D
Cash Margin on guarantee and L/C facility – 20% minimum.
Security charged/mortgaged to be insured as per bank’s guidelines.

ED
Insurance
TEV Study As per bank’s extant guidelines.

R
Financial ratios As per Global Credit exposure Policy/ further changes as and when
applied.

R
A
M
U
K
Documentation  D.P. Note ( As per constitution of the borrower)

A
 Letter of continuing security ( in case of CC/ O/DA/c)

D
 Letter of Undertaking for Book Debts (in case of CC/OD accounts)

Other conditions 
N
Letter of installment with acceleration clause (in case of DL/TL).
A
Equitable mortgage of land &building
 Letter of Direct Payment to suppliers
N

 Hypothecation of stocks, book debts, machineries, equipment/other

A

items as the case maybe

K

 General form of guarantee in case the immoveable property charged

VE

to the Bank is in the name of third party. In case of limited company,

guarantee of directors to be obtained as per Bank’s guidelines.

VI

Undertaking from the borrower to exclusively deal with our Bank

(Other than for which specific authority is given by the bank in terms
LA

of this scheme)
 Other usual documents as per constitution of the borrower and terms
and conditions of the sanction.
U

 For Non-Fund based facilities – as per extant guidelines of the Bank.

D

 Borrower to route the sales and other transactions through their cash
D

credit account with the branch

YE

 Stock/Book Debt statement to be obtained on monthly basis in case

of Cash Credit and on quarterly basis in case overdraft facility. Age-
wise Book Debt statement certified by Chartered Accountant to be
r.

obtained every quarter in case of finance against Book Debt.

M

 Stock- Book debt Audit/Half Yearly Internal Credit Rating/ External

Credit Rating as per Bank Guidelines
y:

 Pre-sanction inspection to be conducted and report to be kept on

B

record.
 Inspection to be carried out as per extant guidelines and inspection
ed

report to be kept on record.

 Financial statements, i.e. Audited Balance Sheet, Profit & Loss A/c,
ad

Audit reports, Returns/Assessment on GST, Income-tax etc. be

obtained and kept on record at the time of annual review.
 In case of Bank Guarantee and L/C, Bank’s extant guidelines to be
observed.

Page | 26
  Bank’s name board to be prominently displayed at the place of
storage of goods/machinery charged to be bank and other places of

Y1
business.
 Undertaking for CIBIL purpose be obtained.


.(V
Prescribed undertaking in respect of details of legal heirs, immovable
properties and other matters to be obtained from the Directors and
Guarantors.


Y
All other terms and conditions of advances as laid down by the bank
from time to time to be followed/ observed by the branch scrupulously

D
without any relaxation.

ED
 The scheme will also be applicable for takeover of accounts from
other banks subject to compliance of take over norms (financial and

R
non- financial aspects) stipulated in Global Credit Exposure
Management Policy / extant guidelines issued from time to time.

R
 Salary account of all staff members of the firm/company to be

A
mandatorily opened with our bank, (wherever applicable).

M
Others  Branches to Endeavour to obtain CASA deposits from the
borrowers/guarantors

U
 Branches to Endeavour to tap business of associate concerns and

K
other retail loan products

A
 Branches to Endeavour to canvass third party products

D
Classification As per investment in Machinery/ Equipments – MSME regulatory
N
A
N

5.7 BARODA SME LOAN PACK

A

Parameter Guidelines
K

Eligibility SMEs as per Regulatory/expanded definition given below:

VE

 Micro, Small and Medium Enterprises {Manufacturing and Service Sector

(other than retail trade)}- as per regulatory definition irrespective of
VI

geographical location, i.e. rural, semi-urban, urban, metro areas.

 All other entities with their annual sales turnover up to Rs. 250/- crores
LA

and in case of new projects, where the estimated sales turnover in the
first full year of commercial operation (12) months is up to Rs. 250
crores. For real estate projects, where project cost is up to Rs. 50 crores.
U

(As per Global Credit Exposure Management Policy / extant guidelines issued
D

from time to time)

D

Borrower to exclusively to deal with BOB.

YE

Purpose To provide hassle free credit for working capital (fund based and non-fund
based) as also capital expenditure related to the business of the borrower
within the overall composite limit sanctioned to the borrower.
r.

Composite limit 4.5 times of borrower’s tangible net worth as per last audited Balance Sheet,
M

or, Rs. 10.00 crores, whichever is lower.

By way of fund based (Short or Long term) or non-fund based facilities as per
y:

Delivery of
Product the requirements of the borrower, within the overall composite limit
B

sanctioned to the borrower.

Period for Term Maximum period up to 7 years
ed

Loan
Margin 25% on all the facilities
ad

Rate of Interest As per Credit Rating.

Page | 27
 Security 1) Exclusive charge on the assets of the enterprise.
2) Personal Guarantees of all promoter Directors/partners.

Y1
3) Charge on the unencumbered personal properties of the partners,
promoter Directors, wherever applicable. (Will not be applicable in cases

.(V
covered under CGTMSE scheme)
4) Third party guarantee in case of credit line not covered under CGTMSE
in case of Micro and Small Enterprises as per regulatory definition.

Y
5) Minimumcollateralof25%ofloanamountifaccountisnotcoveredunder

D
CGTMSE in case of new accounts and review with increase. (For review
of the credit facility existing guidelines will be continued)

ED
Documentation As per the drafts approved by our Legal Department.
Unified As per prevalent Service charges.

R
Processing/doc.
charges

R
The provisions of CGTMSE would be applicable for credit lines up to Rs.

A
200.00 lakh in case of MSE units.

M
3. Credit rating applicability would be as per Global Credit Exposure
Management Policy / extant guidelines issued from time to time.

U
4. Stock/Book Debts statement to be obtained every month/as per credit

K
rating. Book debts statement to be certified by Chartered Accountant on

A
quarterly basis.

D
5. Pre sanction inspection to be carried out and report to be kept on record.
N
Thereafter inspection to be carried out on annual basis.
6. In case of Both MSME(Regulatory)& SME Expanded accounts,
A
Minimum collateral of 25% of loan amount if account is not covered
N

under CGTMSE. This is in case of new accounts and review with

A

increase.
K
VE
VI

5.8 BARODA SME GOLD CARD

LA

Parameter Guidelines
Eligibility All Micro, Small and Medium Enterprises – as per regulatory definition
U

irrespective of geographical location, i.e. rural, semi-urban, urban, metro areas

D

and SMEs as per expanded definition viz;. entities with their annual sales
turnover up to Rs. 250/- Crore fulfilling following criteria:-
D

In case of existing accounts-

YE

1. A/c in Standard Category for last 2years

2. Obligor credit rating of “BOB-5” and above
3. Working capital limits of Rs. 25/- lacs and above. In
r.

case of Take Over accounts:-

M

1. Obligor credit rating of “BOB-5” and above

2. No deviation allowed intake over norms while taking over account
y:

3. Working capital limits of Rs. 25/- lakh and above.

B

4. Eligible for the facility only after one year of take over of the a/c
Notes:
ed

 Accounts having sole banking arrangement with our bank are only eligible for
Baroda SME Gold Card under both the above cases.
ad

 There should not be any major inspection irregularities in the account.

Purpose To meet emergent requirements and tie up temporary mismatch in liquidity arising
out of delayed payment by buyers, tax payment etc.

Page | 28
 Nature of Working Capital
facility

Y1
Limit 10% of the assessed MPBF
Security  Charge on current assets, extension of charge on fixed assets if

.(V
stipulated for CC.
 Personal guarantee of Directors
 Collateral security as available to other facilities.

Y
Documentation  D.P. Note

D
 Hypothecation agreement

ED
 General form of Guarantees signed by the Guarantors.
Note: Documents to be obtained along with the documents for other

R
Facilities .
12 months – to be allowed on 4 occasions during the year for a maximum period

R
Period
of 2 months on each occasion. However, there should be a minimum gap of 15

A
days between two drawls .

M
Rate of As per Credit Rating and as applicable to Cash Credit

U
interest

K
Other As applicable to regular Cash Credit and other facilities

A
conditions

D
5.9 BARODA LAGHU UDYAMI CREDIT CARD N
A
Parameter Guidelines
N

Eligibility The scheme is applicable to all existing customers under MSE sectors, who
A

are dealing with us for the last three years satisfactorily and enjoying
K

loan/operative limit up to Rs.10 lakh are eligible. Borrowers with continuous

VE

satisfactory past dealings with us for a minimum period of three years but
not having any liability right now with us can also be covered under the
VI

scheme to avail the facility of BOB Laghu Udyami Credit Card (BOBLUCC)
i.e. converting the existing account to BOBLUCC account.
LA

Purpose To meet the credit requirements of Small business units, retail traders,
artisans, village industries, small scale industrial units and tiny units,
U

professionals and self-employed persons, etc.,

D

Limit Maximum limit up to Rs. 10/- lacs.

D

Period/Validity The limit fixed under the scheme will be valid for a period of -3- years,
YE

subject to internal annual review based on the conduct / operations of the

account. Wherever required, enhancement in Credit Limit within the ceiling
of Rs.10 Lakh will be considered without submission of a detailed proposal
r.

by the borrower.
M

Rate of Interest As applicable to Micro & Small Enterprises.

Margin Limit Margin
y:

Up to Rs. 50,000/- Nil

B
ed

Rs. 50,001 to Rs. 10,00,000/- 25%

ad

Primary security Hypothecation -of stock in trade, receivables, Machinery, office

equipment, etc., as specified for existing limits.
Collateral security As per RBI guidelines, no collateral security to be obtained.

Page | 29
 Assessment of credit  For small business, retail traders, etc., 20% of the annual turnover
limit declared for tax purposes or last 12 months turnover in the operative

Y1
account, whichever is higher.
In respect of parties with good track record, where sales tax returns are

.(V
not available, the credit limits may be decided taking into consideration
the actual turnover in the account during the last two years.
 Forprofessionalsandself-employedpersons,50%oftheirgrossannual

Y
income as per IT return shall be considered as the limit for issuing the

D
BOBLUCC.
 For Small Scale industrial Units including tiny sector units, the

ED
assessment norms in vogue as per the Nayak Committee
recommendations would continue.

R
Documentation Necessary documents as applicable to existing limits depending upon the

R
security offered for the credit card should-be obtained,

A
Insurance Existing conditions in respect of insurance to be continued.

M
Insurance cover may not be insisted for limits up to Rs.25, 000/-.
Operations  BOBLUCC holder would also be issued Cheque book specially marked

U
"BOBLUCC Account" and the limit sanctioned would be allowed as an

K
overdraft limit.

A
 Statement of account/pass book be issued by the branches to the

D
BOBLUCC holders as applicable to normal accounts.
N
A
N
A

5.10 BARODA ARTISANS CREDIT CARD

K

Parameter Guidelines
VE

ELIGIBILITY :  All artisans involved in production/manufacturing process (and

otherwise eligible for credit facility for carrying out the proposed
activities under any of the existing bank’s schemes) would be
VI

eligible.
 Preference would be given to artisans registered with Development
LA

Commissioner (Handicrafts)
 Thrust in financing would be on clusters of artisans and artisans
U

who have joined to form Self Help Groups (SHGs).


D

Beneficiaries of other Government sponsored loan schemes will

not be eligible for coverage under BACC scheme.
D

 All existing artisans borrowers of the bank enjoying credit facilities

YE

up to Rs. 2/- lacs and having satisfactory dealings with the bank will
be eligible to avail credit facilities under the scheme. This would
enable them to get limit sanctioned for a three year period as
r.

also benefit from simplified

M

procedures stipulated for availment of credit.

y:
B

ISSUE OF CARDS  The beneficiaries under the scheme will be issued with a photo
card indicating sanctioned limit and validity period of credit facility.
ed

He would also be issued a passbook or a credit cum passbook

incorporating name, address, borrowing limit, validity period etc.
ad

While the photo card would serve as an identity card, the

passbook would facilitate recording of transactions on an ongoing
basis.

Page | 30
 FIXATION OF CREDIT :  The credit limit would be fixed based on assessment of working
capital requirements as well as cost of tools and equipment

Y1
required for carrying out manufacturing process. For evaluating
working capital requirements, the norms adopted as per Nayak

.(V
Committee recommendations (20% of anticipated turnover) are to
be followed. The maximum limit to be sanctioned under the
scheme would be Rs.2/- lacs.

Y
D
The limit is expected to be utilized as a revolving cash credit and
will provide for any number of drawals and repayments within the

ED
limit. Bank may, however, fix a repayment schedule for the portion
of loan availed for purchase of tools and equipments. As the limit

R
sanctioned would normally have a validity of three years, the need
to accommodate incremental working capital requirements

R
may be kept in view.

A
PERIOD :  Maximum 3 years subject to annual review.

M
MARGIN ;  As per RBI guidelines from time to time or the bank’s policy in this

U
regard.

K
A
At present

D
Up to Rs.25000/- No Margin

VALIDITY/
N
Above Rs.25000/- up to Rs.2/- Lacs 15% to 25%
 The Credit Card should normally be valid for 3 years subject to
A
RENEWAL OF LIMITS : annual review.
N

 The review may result in continuation of the facility, enhancement

A

of the limit or cancellation of the facility, depending upon the

K

performance of the borrower.

VE

 For the purpose of annual review the borrower would not be

required to submit any financial statement.
 As a measure of incentive for card holders with good performance,
VI

the bank may consider the enhancement of the limit at the time of
LA

renewal within the ceiling of Rs. 2/- lakh.

 No fees will be charged at the time of review/renewal of card.
U
D

SECURITY : Assets financed under the scheme are charged to the bank as security.
D
YE

RATE OF INTEREST The rate of interest is subject to change as per Bank’s guidelines as
advised from time to time.
r.

INSURANCE COVER  Insurance for loans up to Rs. 25,000/- may be waived. For loans
M

beyond Rs. 25,000/- insurance cover may be obtained for the

assets financed under the Scheme as per extant guidelines.
y:

GROUP INSURANCE  Beneficiaries who are registered with the Development

B

Commissioner (Handicrafts) would be eligible for coverage under

Group Insurance Scheme and the premium paid by the
ed

Government and the beneficiaries in the ratio 60:40 respectively or

as mutually agreed between Office of Development Commissioner
ad

(Handicrafts) and Insurance Company.

MONITORING OF  Visits to the units by field staff and review of operations in the
ACCOUNTS account may be used as tools for monitoring loan accounts
covered under the Scheme.

Page | 31
 ad
ed
B
y:
M
r.
YE
D
D
U
LA
VI
VE
K
A
N
A
N
D
A
K
U
M
A
R
R
ED

Page | 32
D
Y
.(V
Y1
 5.11 BOB Weaver MUDRA Scheme

Y1
.(V
Parameter Guidelines
Objective The scheme aims at providing adequate and timely assistance from the
Bank to the weavers to meet their credit requirement i.e. for investments

Y
need as well as for Working Capital in a flexible and cost effective manner.

D
The scheme will be implemented both in rural and urban areas.
Eligibility Existing or experienced Handloom Weavers involved in weaving activity

ED
Purpose For purchase of looms and related capital expenditure and need based
working capital requirement

R
Nature of Demand loan & Working capital finance
facility

R
Maximum Rs.5.00 Lakh (Inclusive of Demand Loan and W.C. finance)

A
Limit

M
Rate of Rate of interest as per prevailing rate applicable to MSME segment

U
Interest Rate of interest as per prevailing rate applicable to MSME segment as

K
under:

A
Charging of Interest:

D
For example: if, MCLR+SP+0.70 i.e.10.35 at present, subject to revision in
N
MCLR from time to time as per guidelines of the Bank.
A
To be charged from Borrowers: 10.35%
N
Interest subsidy to be claimed from GOI: Difference amount i.e. 4.35% at
present subject to change in MCLR shall be calculated and adjusted in the
A

account on quarterly basis.

K
VE

(Pl. note that interest subsidy will be available only up to -3- years
from the date of first disbursement)
VI

Margin 20 % of total project cost (Capital Expenditure & W.C)

Margin up to Rs.10000/- or 20% whichever is less shall be provided by
LA

GOI.
Assessment of Demand Loan: 80% of cost of Looms and other accessories / capital
Limits expenditure
U

Working Capital limit: Bank finance will be 20% of estimated / projected

D

turnover less margin.

D
YE
r.

5.12 BARODA MSE GENERAL CREDIT CARD

M
y:

Parameter Guidelines
Nature of Facility Demand/Term Loan/Working Capital/Non Fund Based Facilities
B

Purpose  Working Capital Requirement

 Financing new project, i.e., acquisition of land/ construction of building,
ed

plant and machinery based on project cost/expansion project.

ad

 Non-fund based facilities ( Bank Guarantee and Letter of Credit)

Limit Minimum Rs.25000/-
Maximum Rs. 10.00lacs

Page | 33
 Eligibility  Any individual taking up non-farm entrepreneurial activity across the
country
 However Individuals will not be eligible for “Baroda MSE General Credit

Y1
Card” if he/she has been issued any type of credit card such as BKCC,

.(V
BACC, BWCC, LUCC, BOBCARD, Any other type of credit card etc.
except the Cards for consumption needs.

Y
D
Margin For Working Capital/Term Loan/Demand Loan/Non Fund Based :20%

ED
Land & Building:25 %
Rate of Interest Limit Micro Enterprises Small Enterprises

R
Up to Rs. 50000/- MCLR+SP p.a. MCLR+SP + 0.50%
P.A

R
Above Rs. 50000/-to MCLR+SP+0.50% p.a. MCLR+SP+0.70%p.a

A
2.00 lacs

M
Above Rs. 2.00 Lacs to MCLR+SP+0.70% p.a. MCLR+SP+0.85% p.a.

U
Rs. 10.00 Lacs

K
Period Term /Demand Loan: Maximum 84 months with -12- months moratorium

A
Working Capital: For 12months subject to annual review.

D
Security / 1. D. P. Note for individuals
Documents N
2. Comprehensive agreement Hypothecation of Stocks, Book Debts,
A
Plant &Machinery
4. Comprehensive insurance cover with Bank's clause
N

5. Letter of installment with acceleration clause (in case of loan)

A

6. Other usual documents &undertakings

K

Processing/doc. As per Bank’s Norms

VE

charges
Other Charges As per Bank’s Norms
VI

Other 1. The borrower should have all approvals for the activity requirement..
Conditions 2. Inspectiontobecarriedoutasperextantguidelinesandinspectionreport to
be kept on record.
LA

3. Stock statement not to be obtained and the account to be monitored via

Quarterly / Half Yearly Inspections.
U

4. Land & Building financed for the activity should be in the name of
D

borrower and will be treated as primary security.

D

5. No collateral security to be obtained and all eligible accounts are to be

YE

covered under CGTMSE.

6. End use of funds to been ensured.
7. KYC norms to be complied with.
r.

8. All eligible accounts to be covered under CGTMSE.

M

9. The card should be used by the Card holder and should not be allowed
to be used by any other person on his behalf nor the card be handed
y:

over or transferred to anyone.

10. The damaged cards shall be replaced by Bank on receipt of intimation
B

from cardholder and after obtaining a fee of Rs.100/- for issuing fresh
ed

card.
11. In case of loss of card ,the same procedures to be followed as
ad

applicable for BOBCARD such as reporting in police station, immediate

intimation to the issuing authority..
12. Bank shall not be liable for misuse of card in case of loss of the card
not reported in time.

Page | 34
 13. The Bank reserves the right to cancel the card at any time without
notice/assigning any reasons or refuse to reissue/renew/replace the
card.

Y1
14. The sanctioned limit will expire on the death or insolvency of the
cardholder and bank will be entitled to recover entire outstanding

.(V
amount against the cardholder on the death or insolvency of the
cardholder.
15. The legal heirs/assignees of the cardholder will remain liable to the

Y
Bank for the amount due on the cardholder’s account in case of death

D
of the cardholder.

ED
16. The cardholder may at any time opt out of the scheme by surrendering
the card to the Bank. However the cardholder will remain liable for the

R
transactions made by him till the surrender of the card.
17. The bank will have a right to set off all the monies which the bank hold

R
in the name of the cardholder under any account with any of the

A
Branches of the Bank against the dues under the scheme.

M
18. The bank is entitled to add/alter and amend these rules as deemed fit in
its absolute discretion without assigning any reasons whatsoever and

U
the same shall be binding on the cardholder.

K
19. The card will be issued in the Bank’s discretion and the bank will have a

A
right to reject any application without assigning any reason whatsoever.

D
20. All other General terms & conditions for working capital/Term to be
complied with.
Classification of N
MSE as per investment in Plant & Machinery/Equipment
A
Advances
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
ad

Page | 35
 5.13 Scheme for financing persons with disabilities

Y1
under the Collateral Free MSE Loans/ Education Loans refinance schemes promoted by
National Handicapped Finance and Development Corporation (NHFDC)

.(V
Eligibility of Any disabled person who fulfills the following criteria is eligible to avail financial
assistance –

Y
beneficiary
For Self-Employment purpose

D
a) Age between 18 and 60years and

ED
Any Indian citizen with 40% or more disability.

R
Purpose To make available the facility of collateral free loan for self- employment with

R
Disabilities (PwDs) at NHFDC / Bank’s rate of interest under CGTMSE scheme.

A
M
U
Eligibility of The business activity for which loan is sought should be eligible under CGTMSE

K
Business Activity

A
Nature of Facility Term Loan/Demand Loan/Cash Credit/Non-fund based facilities.

D
Limit Maximum – Rs. 25.00 Lacs N
A
N
Method of As per Bank’s Guidelines (Domestic Loan Policy )
A

Assessment
K

Rate of Self-Employment purpose: (For Term Loan/Demand Loan only)

VE

Interest/Refinance
VI

Loan Amount To be paid by To be paid by

Bank to NHFDC( Beneficiaries to
LA

Re-finance) Bank
U

Up to Rs. 50,000/- 2% 5%
D
D

Above Rs. 50,000/- up to Rs.5.00 lacs 3% 6%

YE

Above Rs. 5.0 lakh up to 4% 7%

Rs.15.00Lacs
r.
M

Above Rs. 15.0 lakh up to 5% 8%

Rs.25.00 Lacs
y:
B

For Women with Disabilities (Self Employment purpose):(For Term

ed

Loan/Demand Loan only)

ad

Page | 36
 Y1
Loan Amount To be paid To be paid by
by Bank to Beneficiaries

.(V
NHFDC( Re- to Bank
finance)

Y
Up to Rs. 50,000/- 1% 4%

D
ED
Above Rs. 50,000/- up to 2% 5%
Rs.5.00lacs

R
Above Rs. 5.0 lacs up to 3% 6%

R
Rs.15.00Lacs

A
M
Above Rs. 15.0 lakh up to 4% 7%
Rs.25.00 Lacs

U
K
A
An interest rebate of 0.5% on the applicable rate of interest on loan

D
extended for self-employment activities will be given to PwDs
N
belonging to VH/HH/MR category.
A
N
Rate of Interest for Cash Credit/Non fund based facilities will be charged
A

as per Bank’s Guidelines as Refinance on the same will not be claimed.

K
VE

Margin For Cash Credit :

VI

25% against stocks & Book Debts up to 90 days only

LA

For Term Loan/Demand Loan :

30% on land and building
U

25% on Plant and Machinery.

D
D
YE

Repayment Period 12 months for working capital subject to review

r.

Maximum 84 months for Term Loan (including moratorium period as

M

per the requirement of project) /35 months for Demand Loan,

y:

subject to review every year

All charges as per Bank’s extant guidelines.
B

Proc./Doc.
Commitment
ed

charges, upfront fee

ad

Page | 37
 Prepayment As per Bank’s extant guidelines
Charges

Y1
Security  Hypothecation of stock/Book Debts/Machinery

.(V
 Equitable mortgage of Land & Building (Primary security)
 No collateral security to be obtained.
Refinance  As regards monitoring the refinance under the scheme, we will

Y
identify and designate one branch in every Zone for claiming

D
refinance from NHFDC.

ED
 The branch will process the applications as per the scheme based
on technical feasibility and viability fulfilling bank norms. Request

R
for refinance giving details of the beneficiary and activity in the
prescribed format through the Nodal Branch in their respective

R
Zones, will be submitted to NHFDC.
 The Nodal Branch will submit the said prescribed format for

A
M
Refinance to NHFDC and will obtain refinance from NHFDC.
 The details of Refinance obtained will be kept at Nodal Branch on

U
behalf of financing Branch and will advise the financing Branch

K
having obtained the refinance from NHFDC. Periodical repayment

A
will be made to NHFDC by Nodal Branch.
 Periodical reconciliation may be carried out at Nodal Branch in

D
respect of refinance under NHFDC scheme.
N
 Repayment of Refinance will be linked to repayment period of
A
Term Loans (MSME/Educational loans).Rate of interest/Charges
N

on Cash Credit /non fund based facilities will be charged as per

A

Bank’s guidelines and accordingly Refinance on Cash Credit/Non

K

Fund based facilities will not be claimed in view of repayment

stipulated by NHFDC.
VE

Other General All other general terms and conditions are to be followed.
Terms and
VI

conditions
LA
U
D
D
YE
r.
M
y:
B
ed
ad

Page | 38
 5.14 Scheme for financing persons with disabilities Educational Loans
refinance schemes

Y1
{Promoted by National Handicapped Finance and Development Corporation (NHFDC).}

.(V
Eligibility of Beneficiary Any Indian Citizen with 40% or more disability.

Purpose Educational Loan- A term loan granted to Indian Nationals for

Y
pursuing higher education in India or abroad where admission has

D
been secured.

ED
Nature of Facility Term Loan

R
Limit Need based finance subject to the repaying capacity of the

R
parents/students with the following ceilings –

A
M
i) Studies in India-Maximum Rs. 10.00lacs

U
ii) Studies Abroad--Maximum Rs. 20.00lacs

K
A
Rate of For Women with Disabilities

D
Interest/Refinance
N
A
Loan Amount To be paid To be paid by
N
by Bank to Beneficiaries
A

NHFDC to Bank
K

Up to Rs. 10,00,000/- for Study 0.50% 3.50%

VE

in India and Up to Rs.

20,00,000/- for Study abroad
VI

Margin Up to Rs. 4.0 lakh -Nil

Above Rs. 4.0 lakh for courses in India - 5%
LA

Above Rs. 4.0 lakh for courses abroad - 15%

Repayment of Term The loan to be repaid within 7 years after commencement of
U

Loan repayment.
D

 The repayment as per repayment schedule would commence one

D

year after completion of course or 6 months after securing a job,

YE

whichever is earlier.

 Interest on term loan would be charged from the date of

r.

disbursement of loan from NHFDC (grace period as per lending

M

policy is permissible).
y:

 In the case of loan extended / to be extended by the Corporation

B

under the scheme, simple interest shall be charged on the loan

amount at the prescribed / applicable rate during the moratorium
ed

period and that the unpaid interests, if any, shall be compounded

and charged at the commencement of repayment of loan at par
ad

with term loan.

 The manner of charging interest as specified above shall also be
made applicable to loans already sanctioned / released under the
scheme notwithstanding anything to the contrary contained in the

Page | 39
 sanction letter or the scheme as the case may be.

The beneficiary will submit the copy of mark sheet after every

Y1
term/semester to the SCA for further submission to NHFDC
Security No Security

.(V
Up to Rs.4.00 Lacs

Y
Above Rs.4.00 lacs and up Collateral security in the form of suitable third party guarantee. The

D
to Rs.7.50 Lacs SCA may, at its discretion, in exceptional cases, waive third party

ED
guarantee if satisfied with the net-worth/means of parent/s who would
be executing the documents as "joint borrower".

R
Above Rs.7.50 lacs Tangible collateral security of suitable value, along with the

R
assignment of future income of the student for payment of

A
installments.

M
U
Processing Charges Nil for studies in India

K
A
1% for study in 1abroad to be recovered upfront, however the

D
amount shall be refunded by way of credit to the loan account on
availment of loan.
N
A
N
A
K
VE
VI
LA

5.15 BARODA LOAN TO BUSINESS CORRESPONDENTS

U
D

Name of the Baroda Loan to Business Correspondent Agents (BCA)

D

scheme:
Purpose: 1. To purchase computer hardware, laptop & peripherals, including
YE

printers, biometric scanners etc, furniture and setting up or renovation of

office.
r.

2. To meet working capital requirement for cash management and

M

processing of day to day transactions through settlement account.

3. Purchase of new vehicle(motor cycle)for visits to villages to perform BC
y:

activities
Eligibility: 1. Age: 18 to 60Years
B

2. The product is specially designed for Business Correspondents (BCs)

ed

and Kiosk Operators who have valid agreement with service providers
engaged by our bank for the purpose of providing banking services under
ad

financial inclusion.

Page | 40
 Total Limit under
the scheme: Area Demand Overdraft Term Total

Y1
Loan (Working Loan(vehicle
capital) loan)

.(V
Rural and 75000/- 25000/- 50000/- 150000/-
semi urban

Y
Urban 115000/- 35000/- 50000/- 200000/-

D
Metro 150000/- 50000/- 50000/- 250000/-

ED
Note: At the time of sanction of loan branch should asses the BC wise
requirement after considering the repayment capacity of the BC.
Branches may consider any one/ any two/all three above said facilities as

R
per requirement of the BC, within specified limits.

R
Margin: 10% of the total amount of loan sanctioned.

A
Rate of Interest: As per extent guidelines. Present rates are as under:

M
1. Up to Rs.50000/- MCLR +SP

U
2.AboveRs.50000/-upto Rs. 2 lacs– MCLR +SP+0.50%.

K
3. Above Rs. 2 lacs – MCLR + SP +0.70%

A
Guarantee CGTMSE
:

D
Type of facility: 1. Demand Loan: To purchase computer hardware, laptop & peripherals,
N
including printers, biometric scanners etc, furniture and setting up or
A
Renovation of office.
N
Repayment period: 1. Demand Loan: Repayable in maximum 36 equated monthly installments
A

commencing from one month after date of disbursement of loan.

2. Overdraft: Repayable on demand subject to annual review.
K

3. Term Loan (Vehicle): Repayable in maximum 60 equated monthly

VE

installments commencing from one month after date of disbursement of

loan.
VI

Security: Hypothecation of assets created out of bank finance. In working capital

facility, in such cases clean overdraft should be considered by the link
LA

branches, subject to provisions of CGTMSE scheme.

U

5.16 COMPOSITE TERM LOAN SCHEME

D
D

ELIGIBILITY: Units eligible to be classified as MSME as per MSMED Act 2006

YE

(Regulatory MSME)
PURPOSE: Fixed capital investment and / or working capital requirement.
TYPE OF FACILITY Composite term loan
r.

AMOUNT OF LOAN Up to Rs.100.00 lakh

M

INTEREST RATE As per the general interest rates applicable to MSME Regulatory and
SME Expanded categories.
y:

MARGIN: Nil in case of composite loan up to Rs. 25,000/-.

B

ii) 15% - 25% in case of composite loans above Rs. 25000/- and
up to Rs. 100/- lakhs.
ed

SECURITY Charge on assets created out of loan amount.

(a) Collateral Security / third party guarantee should not be taken in
ad

respect of accounts eligible to be covered under CGTMSE scheme.

(b) Charge on assets created out of loan amount and other collateral
securities as determined on the merits of each case.

Page | 41
 PERIOD OF Minimum 3 years and maximum of 10 years, with initial holiday of 12
REPAYMENT months to 18 months, both for interest and principal.

Y1
MISCELLANEOUS
(a) The quantum of loan to be sanctioned in each case should
be need based. Requirement of one operating cycle should

.(V
be liberally assessed and a contingency of 10 to 20% should
be added to it. Such contingency portion should be disbursed
in case of unforeseen contingency due to operational

Y
bottleneck or some consumption requirement.

D
(b) Repayment programme should be sufficiently long keeping in

ED
view low profitability and sustenance needs of the borrowers.
It should be so drawn up that the installments amount in

R
respect of principal is not normally more than 1% per month
of the principal.

R
(c) Moratorium period should be -18- months in the case of the

A
new units. It could be reduced upto -12- months in the case

M
of artisans / other small units who are already reasonably

U
well established and who are expected to have sufficient
viability to commence repayment somewhat earlier.

K
A
(d) No collateral security/third party guarantee be taken.

D
(e) Working Capital loan should be availed within one year from
N
the date of commencement of production. The unit should
A
open a current account with us and the amount of working
capital of the loan will be credited as and when disbursed.
N
A

(f) The unit should route its entire transaction of the business
including all the receipts and payments through this account
K

only.
VE

The unit should provide monthly stock statement showing the

position of inventory level.
VI
LA
U
D
D
YE
r.
M
y:
B
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Page | 42
 5.17 Baroda Contractor Scheme
Objective To provide working capital assistance (fund based / non fund based) in the

Y1
form of running limit (overdraft), Inland / Foreign Letter of Credit, Bank
Guarantee for meeting working capital needs to the existing and prospective

.(V
contractors / sub-contractors

Target Group

Y
All Registered Civil, Construction, Electrical, Mechanical, Mining, Labour and

D
Transport Contractors undertaking works on behalf of Central / State

ED
Government Department / PWD / Public Sector Undertakings and Reputed
Private sector organizations.

R
For Sub-Contractors-

R
A
 They should be executing works on behalf of main contractors are also

M
eligible under this product subject to their being in the business for more

U
than three years with progressive financials.

K
 There should be an underlying registered agreement between main

A
contractor and sub-contractor with an enabling clause to receive the

D
payment directly from the principle.
N
A
 All required permission and licenses / registration are available.
N

Note: Contractors / Sub-contractors engaged in Real Estate Sector

A

(Commercial / Residential) or any other activity of speculative nature will not

K

be covered under this product.

VE

Deviation in the experience parameter of Sub-contractor may be allowed by

VI

next higher authority for financing upto Rs. 5.00 cr.

LA

(Any Overdraft and NFB limit upto Rs. 30.00 Crores to any contractor would
be sanctioned under this scheme only)
U

Nature of Credit Overdraft

D

Facility Bank Guarantee / Letter of Credit

D
YE

Eligibility MSME units engaged in contractor / sub-contractor activity and falling within
the meaning of Micro, Small & Medium Enterprises as defined in MSMED Act,
2006 and Non Regulatory units as per Bank’s extant guidelines.
r.
M

Proprietorship firms, Partnership firms, Limited Liability Partnership, Joint

Ventures, Private Limited Companies, Limited Companies, Trust / AOP/ Co-
y:

operative societies are eligible under the Scheme.

B

(HUF as proprietor / partner are not eligible)

ed
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Page | 43
 Purpose Working capital requirements both FB and NFB facilities.

Working Capital: FB & NFB WC limits to meet day to day requirement /

Y1
materials / labour payment / statutory payments etc.

.(V
Bank Guarantee: For bidding of tenders, mobilization of advance money,
performance of the contract, guarantee in favor of Central / State Govt. & its

Y
various departments and reputed Pvt. / Ltd. companies, guarantee for release

D
of retention money.

ED
Assessment of As per Annexure II

R
Overdraft Limit Margin: Minimum 25%

R
Assessment of Non As per Annexure II

A
Fund

M
Based Limit Margin on Bank Guarantee / Letter of Credit:

U
 Minimum 20% margin (Next higher authority can allow reduction in margin

K
by maximum 5%, i.e., up to minimum15%).

A
 Minimum 20% cash margin in case BG is to be issued in JV / SPV / Third

D
Party.
 100% cash margin for Financial Guarantee & BG against disputed
liabilities. N
A
Minimum and Minimum Limit: Rs. 10.00 lacs
N

Maximum Limits
A

Maximum Limit: Rs. 30.00 crores (Including FB and NFB)

K

Inter-changeability from FBWC limit to BG / LC may be permitted by the

VE

sanctioning authority on merits.

VI

Up to 25% inter-changeability from BG / LC to FBWC may be allowed by

sanctioning authority on case to case basis with cogent reasons /
LA

justificationprovidedcollateralsecurityforFBWClimitsdoesnotfallbelow 100% of
FBWC Limit (as mentioned later in this note) after such inter- changeability.
U
D
D

Tenure FBWC: Up to 12 months

YE

Bank Guarantee / Letter of Credit: -12- months.

The facilities are subject to annual review as per extant guidelines.
 Up to Rs. 5.00 crs would be linked to CMR ranking circular
r.

Rate of Interest
M

BCC/BR/110/304 dated 11.06.2018. However, additional risk premium of

0.50% (50 basis points) would be charged over and above the applicable
y:

rate based on CMR based pricing.

 ForexposureaboveRs.5.00crs-rateofinterestwouldbeappliedbased on
B

Combined Rating (CR).

ed

However,eligibilityforconcessioninROIundertheschemetotheborrower may be
calculated as per scoring method given in ‘Annexure I’
ad

Charges / Applicable unified processing charges and commission on BG / LC as per

Commission guidelines.

Page | 44
 However, eligibility for concession in unified processing charges and
commission on Bank Guarantee / Letter of Credit may be arrived at as per

Y1
‘Annexure I’.

.(V
All other charges to be levied as per extant guidelines.

Adhoc Limit Adhoc Limits can be allowed as per existing DLP. All other extant

Y
guidelines pertaining to Adhoc viz. sanctioning authority, number of times

D
Adhoc allowed in a year, additional ROI to be complied with.

ED
Conditions for Adhoc Limit:

R
a) Conduct of account is satisfactory.

R
b) Turnover in the account is satisfactory.

A
c) No irregularity persists in the account.
d) Processing charges to be recovered.

M
e) Account is at-least CMR 5 in ranking (wherever applicable).

U
f) Account has not occurred in SMA 1 or below in past 6months.

K
Note: Adhoc should not be allowed in new accounts, i.e., dealing of less

A
than -12- months with our Bank.

D
Security Primary:
 Cash margin as applicable. N
A
 Hypo. of current assets and fixed assets in case of FBWC limits.
N

Collateral:
A

 Mortgage of immovable properties (residential/ commercial (industrial

K

not applicable)), owned by the promoters, or their family members

(including non-encumbered, clear, demarcated vacant land). Security
VE

coverage from the same should be minimum40%

 Overall security coverage from immovable + Cash margin should
VI

be at least 65% of the total exposure.

Any security in the name of HUF is not admissible. Personal Guarantee of
LA

promoters / directors / partners / proprietor to be obtained.

U

Financial Ratios Authority for deviation in Current Ratio & DE Ratio (not applicable for
D

takeover of a/c):
D
YE

Ratio Benchmark Deviation up to

r.

Level By RMCC By ZOCC

M

Current Ratio 1.17 / 1.20 / 1.33 1.00 0.75

(Excluding Term Loan)
y:

DE Ratio (TTL / TNW) 3.00 4.00 5.00

B

DE Ratio (TOL / TNW) 4.50 6.00 7.00

ed

In case current ratio is below defined benchmarks only due to term loan
ad

installment (from any FI) being considered as current liability, it should not
betreatedasdeviation,iftheprojectedandacceptedDSCRisabove1.25

Page | 45
 for next year. i.e. Projected cash generation is more than projected
installment of TL and maintaining DSCR of 1.25.

Y1
Note: In case of takeover of account, deviations may be considered by

.(V
competent authorities as mentioned in Global Credit Exposure
Management Policy / extant guidelines.

Y
(Financial Deviations once approved shall continue only for review/ review

D
with decrease cases where there is no deterioration in the financial health

ED
of the company. However deviation needs to be taken, if any, in case of
Review with increase.)
Conditions  Age wise Quarterly book debt statement duly certified by Chartered

R
under the Accountant.

R
Scheme  Annual stock & book debts audit. Stock statement to be obtained

A
annually.
 Half yearly progress report of project in case of sanction of Bank

M
Guarantee containing the estimation given to the Bank vis-à-vis

U
percentage completion of work. Penal interest @ 2.00% p.a. to be

K
charged in case of non-submission of progress report.

A
 Inspection to be carried out as per extant guidelines.
 Minimum Internal Rating of BOB6.

D
 Cut off of External Rating is BBB or above in case of existing entities,
N
wherever available.(Deviation upto BB by the next higher authority
A
if no other deviation sought).
N

 For other entities, guidelines regarding external rating as per circular

A

no. BCC/BR/110/590 dated 05.12.2018 to be complied with.

 The borrower should solely bank with us for working capital limits and
K
VE

shall route the entire turn over with us. No current account to be
allowed with any other Bank.
 RAROC in the account to be calculated. However, concessions to be
VI

allowed as per Annexure I irrespective of the RAROC.

Other  Sanctioning authority: As per Discretionary Lending Powers based on
LA

Compliances extant guidelines.

 Any deviation from the parameters specified under this Scheme to be
U

considered by COCC ED.

D

 In case of takeover of accounts, takeover norms (both, financial and

D

non – financial) and deviation from takeover norms as per Global

YE

Credit Exposure Management Policy / extant guidelines shall apply.

 All other extant guidelines of the bank to be complied with.
 The Scheme is valid for a period of 12 months from the date of
r.

approval and renewal shall be subject to approval from competent

M

authority.
y:
B
ed
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Page | 46
 Y1
5.18 BOB GST Receivables Card for MSME Entrepreneurs

.(V
Objective To provide additional working capital assistance to customers facing
crunch in liquidity arising out of GST paid on purchases and input tax

Y
credit on the same not yet claimed / eligible for refund.

D
Target Group All MSME Regulatory and Non Regulatory borrowers as per Bank’s

ED
extant guidelines.
Nature of Credit Short Term Working Capital Loan

R
Facility

R
Eligibility


A
Existing MSME (Regulatory & Non Regulatory) borrowers enjoying
working capital limits with the Bank with satisfactory conduct.

M


U
New MSME (Regulatory & Non Regulatory) customers to whom
fund based working capital limits are being sanctioned.

K


A
The account should have not fallen in SMA 1 / SMA 2 category in
the last 1 year.

D
 N
Minimum CMR Rating up to CMR 5 in case of limits up to Rs. 10.00
A
crores. In case CMR not available, Minimum Rating of BOB 6 in
Greenfield Projects and BOB 5 in other cases.
N


A

Availing working capital limits of Rs. 25 lacs or above from our Bank
under sole / multiple / consortium banking arrangement.
K


VE

NOC to be obtained from other banks in accounts under multiple /

consortium for ceding charge on assets.
VI

Quantum of Up to 15% of the existing Fund Based Working Capital Limit

Adhoc Limit
The limit shall be over and above the assessed working capital finance.
LA

Disbursement
U

Up to 80% of:
D

 Input tax credit under GST pending as on date which is to be claimed

D

in future; and / or
YE

 Input tax credit unutilized under GST where refund is to be applied /

already applied to the concerned authority.
r.
M

as per CA (Statutory Auditor of the firm / company) Certificate to that

effect.
y:

Disbursement shall be restricted against input tax credit pertaining to the

B

immediately preceding quarter only, from the quarter in which request for
disbursement is made (Jan-Mar, Apr-Jun, Jul-Sept., Oct -Dec.). For e.g.
ed

for disbursement request made anytime between 1st April to 30th June
2018, eligible input tax credit should pertain to January to March 2018
ad

quarter only.

Branch to satisfy itself regarding the genuineness of CA Certificate.

Page | 47
 Branch to satisfy itself regarding the genuineness of CA Certificate.
Only a single disbursement shall be allowed during a drawl, i.e., input

Y1
tax pertaining to the last quarter can be disbursed only once within the

.(V
tenure of 3 months and not in parts.

Tenure
Door to door tenor of loan: Maximum up to -9- months including

Y
maximum moratorium period up to -3- months. Sanctioning authority to

D
decide the frequency of instalments

ED
Interest to be serviced on monthly basis.

R
The limit can be allowed up to -4- times a year.
Rate of Interest ROI as applicable on Fund Based Working Capital Limit (excluding

R
concessions, if any).

A
Penal interest @ 2.00% over applicable rate of interest to be charged

M
from the day any amount becomes overdue.

U
K
Processing and As applicable on Fund Based Working Capital Limit

A
Other Charges

D
Security Extension of all primary / collateral securities / personal / corporate
N
guarantee as available for Fund Based Working Capital Limits.
A
Documents to 
N
GST Registration Certificate.
be obtained 
A

Copies of applicable GST Returns, which are due as on date, to be

from the submitted before disbursement of such Adhoc limit.
K

borrower 
VE

Request letter from the borrower for Adhoc limit against input tax
credit not yet claimed under GST.

VI

Undertaking from the borrower regarding appropriation of refund of

GST towards outstanding under BOB GST Receivable Card facility.
LA

 Certificate (as per attached format in Annexure) from practicing

Chartered Accountant (Statutory Auditor of the firm / company)
U

certifying the verification of invoices under GST and the amount of:
o Input tax credit under GST pending as on date which is to be
D

claimed in future; and / or

D

o Input tax credit unutilized under GST where refund is to be

YE

applied / already applied to the concerned authority.

 Copy of refund application form submitted to concerned authority, if
r.

refund applied, to be obtained.

M

Other  Sanctioning authority: As per Discretionary Lending Powers based

Compliances on extant guidelines. Extant operational guidelines for SME LF for
y:

sanction of credit limits to be applicable.

B

 Sanctioning authority (as per DLP considering total exposure to the

ed

borrower / group) can sanction the limit under this Scheme on

standalone basis and the same shall be reviewed along with other
ad

credit facilities at the time of next review, i.e., review to be

synchronized along with other credit facilities.
 Limit under this product can be allowed irrespective of Adhoc Limit
and SME Gold Card, if any, being availed by the borrower presently.

Page | 48
 However, Branch / SME LF to exercise caution while extending limits
under the product to such borrower.

Y1
 In case of change of Statutory Auditor by the firm / company,
customer to submit copy of board resolution (wherever applicable)

.(V
and appointment letter of the new auditor to the concerned Branch /
SME LF. Branch/ SME LF to send a written communication to the
new auditor asking for confirmation of such appointment.

Y
 No disbursement to be made in accounts where credit limits are

D
overdue for review.
 Any deviation from the parameters specified under this Scheme to be

ED
considered by COCC ED.
 All other extant guidelines of the bank to be complied with.

R
 The Scheme is valid for a period of 12 months from the date of
approval and renewal shall be subject to approval from competent

R
authority.

A
M
U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
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M
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B
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Page | 49
 Y1
5.19 Vendors Bill Discounting Product for vendors / suppliers of Large

.(V
Real Estate Developers
Eligible Borrowers  All vendors / suppliers (falling within SME Regulatory / Non Regulatory

Y
classification only) of Large Real Estate Developers to whom Program
Limits have been approved by

D
Committee of General Managers at BCC (COGM) which are

ED
recommended by the Developer in the prescribed format.
Eligibility Criteria  Registered under RERA.

R
of Real Estate  External credit rating - ‘A’ rated or above.
Developer  Minimum existence in Real Estate Sector – 3years.

R
 Tangible Net Worth as per last ABS – Minimum Rs. 50.00 Crores.

A
M
Eligibility Criteria Total Number of years of association with Real Estate Developer -

U
of Vendors / Minimum 2years
 Minimum annual sales / services (previous year) to Real Estate

K
Suppliers
Developer – Rs. 0.50 crores

A
 Profit After Tax for the last -2- years –Positive

D
 Tangible Net Worth as per last ABS –Positive
N
 Current ratio – Minimum 1.33 / 1.20 / 1.17 for SME Non Regulatory /
A
Medium / Small & Micro units respectively
 DE Ratio (TOL / TNW) – Maximum4.50
N

 DE Ratio (TTL / TNW) – Maximum3.00

A

 Minimum BOBRAM (Internal) Rating of BOB6

K

Assessment of Limit  25% of the average turnover of past two years. In case, turnover is on
VE

decreasing trend, 25% of actual turnover of last year.

VI

Rate of Interest  As per Bank’s extant guidelines, i.e., linked to internal credit rating.
Charges  Processing and Other Charges: As per Bank’s extant guidelines.
LA
U

Margin  Minimum 10% of the Bill amount

D

Tenor of Finance  Maximum maturity date under the program shall not be more than 90
D

days from the date of acceptance (bill to bill).

/  Bills of Exchange drawn by vendor / supplier and accepted by Real Estate
YE

Security
Documents from Developer.
Real Estate  Letter of Recommendation cum Undertaking as per prescribed format

r.

Developer Real Estate Developer to undertake that in respect of all bills financed by
the bank under the program, the payment will be made by the Real Estate
M

Developer to the Bank on or before the due date.

 In case of non-payment of bills on the due date and on a written request
y:

by the Bank, Real Estate Developer to remit all proceeds / security

B

deposits lying to the credit of such vendor

/ supplier with Real Estate Developer to the Bank.
ed
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Page | 50
 Security from  Demand Promissory Note.
Vendors /  Personal guarantee of the promoters / directors / partners / proprietor to
Suppliers

Y1
be obtained.
 Recourse on the vendor / supplier in case of non-payment of bills on

.(V
due date.
 Any other security as deemed fit by the COGM for individual programs
of a Real Estate Developer.

Y
Other Broad  Committee of General Managers at BCC (COGM) to approve the

D
Parameters program limits for each Real Estate Developer along with the terms

ED
and conditions including pricing, margin, tenure etc.
 COGM to cap the limit to individual supplier / vendor and also the

R
activities / product range in a specific project.
 Credit limits to all the vendors / suppliers of a Real Estate Developer

R
shall be subject to the terms (such as pricing, margin, tenure etc.) as

A
approved by COGM to such Real Estate Developer.
 The aggregate exposure of all the vendors / suppliers of a Real Estate

M
Developer shall not exceed the program limits approved for the specific

U
Real Estate Developer.

K
 Actual exposure will be on the vendors / suppliers of the Real Estate

A
Developer.
 Sanctioning Authority of Bill Discounting limit of vendors / suppliers will

D
be as per the Discretionary Lending Powers.
N
 COGM may, for the purpose of uniformity and better monitoring,
A
identify a single SME Loan Factory where all the credit appraisal notes
N
of vendors / suppliers of a specific Real Estate Developer will be
A

processed and a single branch where all such accounts will be

K

opened. Such SME LF and Branch will be identified keeping in view

the geographic location of the Real Estate Developer for operational
VE

convenience.
In these cases, all the credit proposals of vendors / suppliers of a
VI

particular Real Estate Developer will also be sanctioned at the

identified SME LF unless a proposal falls in the DLP of higher
LA

authority. Such SME LF to then process the credit

proposal and submit it to concerned higher authority for sanction.
U
D
D

Powers for Committee of General Managers (COGM) is authorized to consider

YE

Deviation: deviations with respect to the following:

 Eligibility criteria of Real Estate Developer and its Vendors / Suppliers.
 Concession in Rate of Interest for the Program.
r.

 Concession in processing and other applicable charges.

M

 Reduction in margin below 10% under the Program

y:

Finacle code
while ‘BD 204: Vendors Bill Discounting for Vendors / Suppliers of Large Real
B

required
opening the account Estate Developers’
ed

in CBS system:
ad

Page | 51
 Y1
.(V
5.20 Bill / Invoice Discounting under Value Chain Finance Product
S. No. Parameters Vendor Bill / Invoice Vendor Bill / Invoice

Y
Discounting (large Discounting (small

D
Manufacturers/service providers) Manufacturers/service providers)

ED
/(Sub-vendors)

1 Type of facility Invoice/Bill discounting to Invoice/Bill discounting to

R
vendors/Suppliers vendors/Suppliers

R
A
2 Eligible All companies/firms involved in All companies/firms involved in
Corporates large/Medium scale manufacturing large/Medium scale manufacturing or

M
or providing services except those providing services except those involved

U
for Anchor involved in - in –

K
A
D
▪ Gems and Jewellery ▪ Gems and Jewellery
▪ ▪
▪
Agriculture based
▪
Real Estate (separate scheme
N Agriculture based
Real Estate (separate scheme already in
A
already in place) place)
N

▪ NBFC ▪ NBFC
A
K

Generally it will cover all the Vendors of

VE

companies to whom program limit have

been sanctioned.
VI

3 Eligible All the vendors/suppliers of the All the vendors/suppliers of the Anchor
Vendors/Sup Anchor companies to whom companies to whom Programme limit
LA

pliers Programme limit have been and which are recommended by the
approved and which are Anchor in Bank’s prescribed format.
U

recommended by the Anchor in

D

Bank’s prescribed format.

D
YE
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M
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B
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Page | 52
 4 Eligibility i. Minimum Turnover as per last i. Minimum Turnover as per last ABS –
criteria of ABS –Rs. 200.00crs Rs. 50.00crs
ii. Maximum Turnover as per last ABS –

Y1
the Anchor ii. Maximum Turnover as per last
ABS – Rs. 2000.00crs Rs.200.00crs
iii. External Credit Rating BBB and iii. Positive operating profitability

.(V
above. at least for last two years.
iv. Internal Credit rating- iv. Internal Credit rating-
BOB-5 or above in case the BOB-5 or above in case the Anchor is

Y
Anchor is an existing customer. an existing customer.

D
Not Mandatory in case of new Not Mandatory in case of new

ED
customers. customers.
v. Positive operating v. Minimum Establishment in the

R
profitability at least for last three Business – 3years.
years. vi. Should not have any delinquency/

R
vi. Minimum Establishment in the occur inSMA-1 with any financier in

A
Business – 5years. past 12 months.

M
vii. Should not have any vii. The company/its
delinquency/ occur in SMA- 1 director/promoter should not have

U
with any financier in past 12 occurred in defaulters list/ disqualified

K
months. for any reason in the past.

A
viii. The company/its viii. CMR Rating from 1 to 5.

D
director/promoter should not
N
have occurred in defaulters list/
A
disqualified for any reason in the
N
past.
A

5 Eligibility i. Associated with anchor since i. Associated with anchor since last 2
K

criteria of last 2 years. However, if the years with Anchor. However, if the
VE

the Anchor certifies regarding the Anchor certifies regarding the conduct
Vendors/Suppl conduct of vendor having an of vendor having an association of less
VI

iers association of less than 2 years than 2 years but at least 1 year. The
but at least 1 year. The same same can be considered by
LA

can be considered by sanctioning Authority.

sanctioning Authority. ii. Key managerial person of the Anchor
U

ii. Key managerial person of the and Vendor should not be the same or
Anchor and Vendor should not should not have any direct/indirect
D

be the same or should not have influence on each other.

D

any direct/indirect influence on iii. Minimum Establishment in the

YE

each other. Business –3- years.

iii. Minimum Establishment in the iv. In previous year Vendor/Suppliers’
Business – 3- years. sales, at least 20% of total sales
r.

iv. In previous year should be from Anchor subject to

M

Vendor/Suppliers’ sales, at least minimum of Rs.

30% of total sales should be 50.00 lacs.
y:

from Anchor subject to minimum

B

of Rs.
200.00 lacs.
ed

6 Eligible Domestic Only Domestic Only

Transaction
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Page | 53
 7 Financial i. Positive operating i. Positive operating profitability
Norms of profitability since last two years. since last two years.
the ii. TNW as per last ABS should be ii. TNW as per last ABS should be

Y1
Vendors/ positive and have an increasing positive and have an increasing trend
Suppliers trend year on year from past year on year from past two years.

.(V
three years. iii. Current ratio - Minimum 1.33 | 1.20 I
iii. Current ratio - Minimum 1.33 | 1.17 for Non- Regulatory /Medium /
1.20 I 1.17 for Non- Regulatory Small & Micro units respectively

Y
/Medium / Small & Micro units iv. DE Ratio (TOL / TNW) –

D
respectively Maximum 4.50

ED
iv. DE Ratio (TOL / TNW) - v. DE Ratio (TTL / TNW) –
Maximum 4.50 Maximum 3.00

R
v. DE Ratio (TTL / TNW) - vi. Minimum BOBRAM (internal)
Maximum 3.00 Rating of BOB 6 &

R
vi. Minimum BOBRAM CMR 6 (CMR wherever

A
(internal) Rating of BOB 6 applicable).

M
&CMR6(CMR wherever
Applicable).

U
K
Margin 10% of the Bill/Invoice amount. 10% of the Bill/Invoice amount.

A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
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Page | 54
 5.21 MSME CAPEX CARD & CAPEX LOAN

Y1
.(V
Eligibility MSME borrowers (Regulatory) and SME (Expanded) rated BOB-5 and above.
The manufacturing/service sector units should have been established in the line of activity
for a minimum period two years, Account running with satisfactory dealings for last one

Y
year & above and No adverse features are reported in conduct of account.

D
ED
Purpose The loan to be considered for the following capital expenditure related with the regular
business activity
Replacement of old machinery.

R
Purchase of balancing equipments

R
Modernization.

A
Investment in Research and Development.
Installation of captive power plants and Up gradation of technology.

M
Alteration in layout of factory/office.

U
Acquisition of software, hardware, and tools, jigs, fixtures etc. forming part of Plant &

K
Machinery.

A
Purchase of cars, passenger cars for staff and other vehicles for use of business purpose.

D
Limit
N
15% of Plant & Machinery for MSME(Mfg.) and 25%for Services sector outstanding as
A
per last Audited Balance Sheet or 10% of the working capital whichever is higher based
N

on DSCR and subject to cap -

A

Baroda MSME Capex card: Min. 25 lakhs and Max Rs. 5.00 Crores.
K

Baroda MSME Capex Loan: Min 25 lakhs and Max Rs. 2.00 Crores.
VE

Average Gross DSCR inclusive of the repayment liability under the proposed STL should
not be less than 1.75. In any year it should not be less than 1 for MSE Borrowers and
1.25 for Medium & SME Expanded Borrowers.
VI

The facility to be made available as Fund Based / or Non-Fund Based Limits (i.e.
including establishment of LCs) ensuring that aggregate exposure does not exceed the
LA

overall limit.
U

Margin Land & Building - 30%

D

Plant & Machinery - 25%

D
YE

5.22 BARODA LOAN FOR RESTAURANTS

r.
M

(BCC:BR:111:135 DATED 12/03/2019)

Purpose Acquiring premises & renovation/modernization of existing premises and interior
y:

decoration of restaurant (Non-lodging, non-boarding).

Purchase of Kitchen equipment/Furniture & fixtures.
B

Meeting working capital needs.

ed

Eligibility Individuals /Sole Proprietorship/Partnership and company or any other such business
entity.
ad

Restaurants under franchisee model may be taken on merits.

Quantum of Loan Term loan
Minimum Limit -: Rs.5.00 Lac
Maximum Limit -: Semi - Urban Rs 50.00 Lakhs, Urban Rs. 100.00 Lakh Metro Rs.500.00
Page | 55
 Lakh.

Working Capital

Y1
Minimum Limit - Rs.1 Lac
Maximum Limit - Semi - Urban Rs 5.00 Lakh, Urban Rs 10.00 Lakh Metro Rs 50.00 Lakh

.(V
Margin 25% for Kitchen equipment/Furniture & fixtures.

35% for purchase/construction/expansion/renovation/modernization of premises and

Y
interior decoration.

D
Rate of interest To be linked to CMR ranking BCC/BR/110/304 dated 11.06.2018. However, additional

ED
risk premium of 1.OO% (100 basis points) would be charged over and above the
applicable rate based on CMR based pricing.

R
Assessment of 20 % of the accepted projected turnover is eligible for working capital limit.
finance 75% of the cost of assets purchased.

R
A
65% for purchase/construction/expansion /renovation/modernization of premises.

M
Repayment Term loan-84 months
period Working Capital-12 months

U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
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Page | 56
 5.23 Commercial Vehicle Finance Programme
(BCC:BR:111:133 dated 14.03.2019

Y1
Purpose Funding for purchase of commercial vehicles/ vehicles used for
commercial purpose

.(V
Security Charge on assets created out of Bank’s finance / Other collateral security
on case to case basis / CGTMSE coverage
Assessment As per LTV chart and Viability sheet / Rating Sheet as per scheme

Y
Rate of Interest Rate of interest based on the rating score as per CVF model

D
Type of facility Term Loan / Demand Loan / Overdraft

ED
Finacle Code LA015 / OD033
BRIEF DETAILS OF THE CATEGORIES AVAILABLE

R
Category Definition Limit (Rs. In Tenure (in Moratorium
Segment Lakh) Months)

R
First Time Buyer Driver cum Minimum: 1.00 Minimum: 12

A
(FTB) Owner: Maximum: 25.00 Maximum: 60

M
Guarantor
Backed

U
Small Road 1-2 CV Owner Minimum: 5.00 Minimum: 12

K
Transport Maximum: 50.00 Maximum: 60

A
Operator (Preferably 48)

D
(SRTO)
Retail Fleet 3-9 CV Owner Minimum : 5.00 Minimum: 12
Operator N
Maximum:150.00 Maximum: 60
2 Months
A
(Interest to be
(Preferably 48)
N
capitalised
Large Fleet 10-25 CV Owner Minimum : 10.00 Minimum: 12
during
A

Operator Maximum:500.00 Maximum: 60

moratorium)
K

(Preferably 48)
Strategic Fleet >25-50 CV Minimum : 10.00 Minimum: 12
VE

Operator Owner Maximum:1500.00 Maximum: 60

(Preferably 48)
VI

Captive Captive / Self Minimum : 5.00 Minimum: 12

Customer end use Maximum:1000.00 Maximum: 60
LA

School Bus School Bus Minimum : 5.00 Minimum: 12

Funding Maximum:200.00 Maximum: 60
U

(Preferably 48)
D
D
YE
r.
M
y:
B
ed
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Page | 57
 Maximum LTV Chart -

Y1
Segment Asset LTV on Chassis/Prime LTV on LTV on Fully Built

.(V
Category Mover Body/Trailer Vehicles
FTB MHCV 90% NIL 85%
LCV 90% NIL 85%

Y
SCV NA NA 80%

D
SRTO MHCV 100% NIL 90%

ED
LCV/ICV 90% NIL 95%
SCV NA NA 90%
Tractor Trailer 90% NIL NA

R
Retail MHCV 100% 40% 85%

R
LCV/ICV 100% NIL 85%

A
Tipper NA NA 85%

M
Tractor Trailer 100% 40% NA
Large MHCV 100% 60% 90%

U
Fleet LCV/ICV 100% 60% 90%

K
Owner Tipper NA NA 90%

A
Tractor Trailer 100% 60% NA

D
Strategic MHCV 100% 75% 95%
/Super LCV/ICV 100% N 75% 95%
A
Strategic Tipper NA NA 95%
N
Customer Tractor Trailer 100% 75% NA
A

Captive MHCV 100% 60% 90%

LCV/ICV 100% 60% 90%
K

SCV NA NA 90%
VE

Tipper NA NA 90%
VI

5.24 Segment –I : Three wheeler funding (LA015)

LA

(Ref: BCC:BR:112:9 dated 06.01.2020)

Type of vehicle E-Rickshaws, Quadri–cycle and 3-wheeler (Petrol/diesel/battery/CNG
U

operated)
Eligible borrower Resident Indian Nation as under:
D

Individual, Proprietorship, Partnership firm, Pvt limited company.

D

Public limited company, Trust/association, LLP, HUF as proprietor or

YE

partner not eligible.

Limit Min.: 0.50 lacs and max.: 10 lacs
Tenure Min: 12 month Max: 48 month
r.

Margin 15 % on road invoice price net off discount.

M

Repayment method Through EMIs

Method of assessment As per LTV and cash flow derived out of viability sheet.
y:

Scheme Code LA015

B

Purpose of Advance 03030

DLP If the account is to be covered under PMMY, branch head can
ed

sanction as per DLP. If the account is not to be covered under PMMY,

Nodal branches can sanction the proposal.
ad

(Ref: BCC:BR:112:9 dated 06.01.2020)

58 | P a g e
 5.25 BARODA E-BUSINESS PACK

Y1
Nature / Type Overdraft / Demand Loan / Term Loan / Composite Loan for Working capital

.(V
of Facility requirement / financing capital expenditure to MSME Regulatory
Credit Facility Credit facility/s to all MSME – Regulatory (Service and Trading - Retail Traders)
Target Group i.e. Individuals, Self-employed, Sole Proprietorship firm, Partnership firm, LLP,

Y
Pvt. Ltd., Public Ltd. etc. (HUF as proprietor /partner are not eligible)
Purpose  Working capital requirement – in the form of Overdraft / Demand Loan

D
/ Term Loan.

ED
 Financing capital expenditure – in the form of Demand Loan / Term Loan.
Proposals from persons engaged in Real Estate Developments, Property

R
Dealers / Brokers, Share / Stock Brokers and persons engaged in any
speculative activity should not be considered.

R
A
Sourcing 1. Minimum -02- years in existing business activity/ies at same location.

M
Criteria 2. The Firm / Company must be profit making (Cash Profit) for the last two

U
years.
3. Account should not be categorized under SMA-2 category in last one year.

K
4. Minimum 10% of the total sales of last 6 months should be by way of digital

A
mode

D
5. Promoter’s equity of minimum 0.333 times (1/3 of the credit facilities)
N
requested above Rs.10.00 Lac (DE Ratio should be maximum 3:1).
6. CreditlimitsuptoRs.10.00Lacwillbecollateralfreeandeligibleloans will be
A
covered with NCGTC guarantee scheme under PMMY loans (Pradhan Mantri
N

Mudra Yojana).
A

7. Credit limits above Rs.10.00 Lac to Rs.200.00 Lac to other beneficiaries

K

engaged in the activities of service sector (other than Retail Traders

VE

activity) will be collateral free and eligible loans will be covered with
CGTMSE guarantees scheme.
8. CreditlimitsaboveRs.10.00LactoRs.500.00Lac to general Traders (Retail
VI

Traders) - other than above mentioned in point no. 6 & 7) will be

collaterally secured by way of, fixed deposit, LIC / KVP / Liquid Security,
LA

Equitable Mortgage of Non agriculture land standing in the name of

Enterprise or proprietor / Partner / Director / close relatives with realizable
U

value cover minimum of 50% of credit facility sanctioned.

D
D

In case of applicants who have not availed any type of credit facility (other than
working capital facilities) from other Banks, they should exclusively Bank with us
YE

and should also not maintain any current account with other Banks.
r.

In case of applicant who have availed any credit facility from other Banks,
M

possibility to be explored to take over the same from other Bank, while
considering the existing proposal on merits. No multiple Banking will be allowed
y:

for working capital requirement.

Assessment Overdraft Facility:
B

of Limit Assessment of working capital Credit Facility by way of Overdraft / Demand Loan
ed

/ Term Loan:
ad

59 | P a g e
 For Micro & Small Enterprises as per regulatory definition based on

Y1
investment in Equipment as per MSMED Act

Demand Loan / Term Loan Facilities:

.(V
Need Based Finance to be considered as per requirements based on the
evaluation of the project being undertaken, means of finance, project financials
of the customer, repaying capacity, below mentioned parameters to be

Y
considered for justifying the Demand Loan / Term Loan facilities

D
1. Purpose of the Loan (Purchase of Equipments & for construction /

ED
renovation / modification)
2. 75% of cost of Equipments (25% margin to be brought up front by the

R
borrower from own sources)
or

R
7.50% of projected / accepted turnover by the Bank (based on past turnover

A
or reasonableness of estimates to the satisfaction of sanctioning authority)

M
whichever is lower (within overall limit assessed
based on value of security) subject to maximum of Rs.100.00 Lac.

U
K
Period Overdraft: 12 months and will be reviewed thereafter

A
D
Demand loan / Term Loan: Maximum repayment period shall be up to 60
months(includingmaximummoratoriumperiodof-06-months),subject to annual
review N
A
Note:
N
1. Top up loan in case of Demand / Term Loan may be considered after Lock-in
A

period 12 months (from the date of 1st installment) subject to regular

repayment / satisfactory conduct of account. (The overall limit should not
K

exceed the original Term loan limit sanction).

VE

2. The repayment period of top-up loan to be allowed maximum up to - 36-

months with repayment to commence immediately from the next month of
VI

date of disbursement of top up loan.

LA

Margin Working capital:

U

Minimum 6.25% on projected / accepted non-digital turnover and 7.50% of the

D

portion of turnover which is projected to be digitally transacted.

Demand Loan / Term Loan: 25%
D

Adhoc Limit Sanctioning authority can grant Adhoc limit up to 10% of sanctioned working
YE

capital limit on merits for maximum two month if within DLP of the branch and
not to exceed three times in a year, at 2% additional Rate of Interest on the
r.

Adhoc amount provided:

a) Conduct of account is satisfactory
M

b) Turnover in the account is satisfactory.

y:

c) No irregularity persist in the account.

d) Processing charges to be obtained as per Bank’s extant guidelines. Note:
B

Excess should not be allowed in new accounts where the facility is

sanctioned within a period of -12- months from the date of
ed

original sanction.
Pricing - Rate 0.25% concession on applicable rate of interest as per bank’s extant
ad

of interest guidelines, will be allowed subject to minimum interest @ MCLR + SP.

60 | P a g e
 Bureau Score CIBIL verification of all applicants &guarantors/ Commercial CIBIL of Firm.

Y1
Validations / Company to be generated / carried out and satisfied upon by the sanctioning
authority.
(Consumer Bureau – CIBIL Trans Union under version – 1).

.(V
Credit Card default:
The detailed guidelines have already been advised by Retail Banking

Y
Department,BCC:BR:108/438dated16.09.2016andbyourdepartment, BCC: BR:

D
108/452 dated28.09.2016.

ED
Hence, while accepting the credit card account write off / settlement above

R
Rs.5000/- sanctioning authority to ensure following:
 Willful defaulters would not at all be entertained.

R
 No Due certificate from the Bank / FIs be obtained in respect of credit card

A
account.

M
 Ensure that Bureau Report” of the applicant/s contains no other
adverse remarks.

U
K
A
Unified For Limits up to Rs.10.00 Lac: Nil

D
processing For Limit above Rs.10.00 Lac 25% concession in applicable unified processing
charges
Documentati
/ charges. N
Note: Waiver of 50% Processing charges will be applicable at the time of annual
A
on on review (for Limit above Rs.10.00 Lac), if the Enterprise / borrower routes more
N

Charges than 70% of its total turnover through digital transactions / POS Machine device
A

with our Bank account.

K

Turnover to be reckoned from VAT returns / prevalent type of Tax as per Govt.
VE

guidelines from time to time or Financials

POS Machine / Q R Code / UPI (app. Based charges): Applicable as per the
service provider (BFSL)
VI

Security /  D P Note.
Documents  Letter of continuing security in case of overdraft limit.
LA

 Composite agreement Hypothecation of Stock, Book Debts & Equipment.

 Comprehensive insurance cover with Bank’s clause as per Bank guidelines.
U

 Letter of installment with acceleration clause (in case of Loan).

D

 General form of guarantee in case immovable property charged to bank is in

D

the name of other than borrower/s.

YE

 Letter of pledge / equitable mortgage / assignment etc as applicable.

 Other usual documents &undertakings.
(Assets created out of our finance would be taken as primary security)
r.

Disbursemen The borrower will deposit 25% margin in the account for Demand Loan / Term
M

t t of Demand Loan and Payment will be made directly to the supplier / Dealer as per invoice /
y:

Loan / Term bill.

Loan
B

Stock / Book Stock / Book Debts statement to be obtained on yearly basis, i.e. as of last day
ed

Debts of February, by 10th of March every year.

Statements Stock Audit is not applicable for facilities sanctioned under Baroda E- Business
ad

Pack Scheme

61 | P a g e
 Unit Visit / Inspection to be carried out once in a year and inspection report to be kept on

Y1
inspections record.
Inspection charges as per Bank’s extant guidelines to be recovered from
the borrower.

.(V
Mortgage Mortgage Creation Charges as per extant guidelines will be applicable.
Creation
Charges

Y
Prepayment As per bank’s extant guidelines issued time to time.

D
charges

ED
Penal Interest 2% p.a. on overdue amount / non-compliance of Terms & Conditions
Valuation of The detailed guidelines have already been advised by Corporate & Institutional

R
property Credit Department, BCC: BR: 109/148 dated 23.03.2017. Sanctioning authority
to ensure following:

R
 The property being accepted as security should be got valued by our Bank’s

A
approved valuer at the time of considering the facility. The valuation report

M
should contain the value of property as per present Government rate along
with Market Value, realizable value and Distress Value.

U
 In case the property acquired within last -03- year, amount of Registered

K
Sale Deed should be taken as value of property. (In such cases fresh

A
valuation may be dispensed with if the sanctioning authority is satisfied with

D
registered value).
N
 Legal opinion to be obtained from Bank’s approved advocate as per Bank’s
A
extant guidelines.
 Insurance of the property taken as security as per the valuation report
N

for full value excluding cost of land. The charges to be borne by the
A

borrower/s.
K

Other  Borrower enjoying Demand Loan / Term Loan facility need to open Current
VE

Conditions account( where Overdraft credit facility not sanctioned) with us and POS /
digital transaction is to be routed through that account and installment of the
VI

Demand Loan / Term Loan to be taken from the current account. (In case of
POS facility opted by the borrower).
 Repayment / installment of Demand Loan / Term Loan will on EMI basis.
LA

Interest to be served separately during the moratorium period.

Classification MSE as per investment in Plant & Machinery / Equipment.
U

of advance
D

Lending Facility to be sanctioned as per DLPs for the sanction.

D

Powers
YE

Deviation Any deviation in the product / Scheme will be considered by the Head – MSME
Powers Relationships & Government Schemes at BCC.
Credit Rating Internal Credit Rating to be done at the time of sanction / review of the account as
r.

per prescribed format.

M

Other issues
 Credit limits upto Rs.10.00Lac will be collateral free and eligible loans will be
y:

covered with NCGTC guarantee scheme under PMMY loans (Pradhan Mantri
Mudra Yojana).
B

 Credit limits above Rs.10.00 Lac to Rs.200.00 Lac to other beneficiaries

ed

engaged in the activities of service sector (other than Trader (Retail Traders
activity) will be collateral free and eligible loans will be covered with
ad

CGTMSE guarantee scheme.

details displayed on POS Machine and the same will be repaired / replaced.

62 | P a g e
 However, in case of any damage to the machine due to mishandling etc. the

Y1
cost of the machine / spare parts shall be recovered from the Merchant
(Borrower)

.(V
 All concession / waiver will be ceased / withdrawn, if the borrower will
notrouteminimum70%ofitsdigitaltransactionsthroughourPOS
Machine / Q R Code / UPI (app. Based charges)

Y
D
Finacle Code Working Capital Loan: OD027 (Interest Table Code: MCL 5) Term

ED
Loan: LA523 (Interest Table Code: LMCL5)
Top Up Loan: LA 524 (Interest Table Code: LMCL 5)

R
R
5.26 Construction and Mining Equipment Finance Programme

A
(BCC:BR:111:73 dated 01.02.2019

M
Purpose Funding for purchase of construction & mining equipment

U
Security Charge on assets created out of Bank’s finance / Other collateral

K
security on case to case basis / CGTMSE coverage

A
Rate of Interest Rate of Interest is based on rating score as per CME model

D
Assessment As per LTV chart and Viability sheet as per scheme
Type of facility
Eligible Assets
N
Term Loan / Demand Loan / Letter of Credit
A
As per the list provided in the Scheme
Finacle code LA019
N

BRIEF DETAILS OF THE CATEGORIES AVAILABLE

A

Category Definition Limit (Rs. In Tenure (in Moratorium

K

Segment Lakh) Months)

VE

First Time Buyer O CME Owner Minimum: 1.00 Minimum: 12 2 Months (Interest to
VI

(FTB) Maximum: 50.00 Maximum: 60 be capitalised during

moratorium)
LA

Small 1 CME Owner Minimum: 10.00 Minimum: 12 2 Months (Interest to

Maximum: 100.00 Maximum: 60 be capitalised during
(Preferably 48) moratorium)
U

Medium >3 Years in Minimum : Nil Minimum: 12

D

Business Maximum:500.00 Maximum: 60 3 Months (Interest to

D

(Preferably 48) be capitalised during

YE

moratorium)

Large >4 Years in Minimum : Nil Minimum: 12 3 Months (Interest to

r.

Business Maximum:1500.00 Maximum: 60 be capitalised during

M

(Preferably 48) moratorium)

Strategic >5 Years in Minimum : Nil Minimum: 12 3 Months (Interest to
y:

Business Maximum:5000.00 Maximum: 60 be capitalised during

B

(Preferably 48) moratorium)

ed
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63 | P a g e
 5.27 Baroda Overdraft E- Commerce Product Tie up with Flipkart

Y1
(BCC:BR:110:373 dated 24.07.2018)
Purpose Working Capital requirement for selling online goods over E- Commerce

.(V
Platform
Eligibility: Individuals, Proprietorship Firm, Registered Partnership firm, Limited
Liability Partnership, Private Limited Company, Limited companies, Trust,

Y
Co Operative Societies etc. (Application will be received directly through

D
Flipkart)

ED
HUF and Public Limited co. not eligible
Nature of Facility Overdraft

R
Limit Minimum: Rs. 5.00 Lakh
Maximum: Rs. 25.00 Lakh

R
Margin Nil

A
Period -12- months, subject to annual review
 Hypo of receivables arising out of online E- Commerce Platform

M
Security
 Hypo of Stocks

U
 CGTMSE coverage, if applicable

K
 Locking of Overdraft account with Flipkart for routing entire

A
proceeds

D
Assessment  20% of annualized net pay out given by Flipkart during last -6-
N
months based on Bank statement / Flipkart data
 2 times of average net monthly pay out by Flipkart during last -3-
A
months based on Bank statement / Flipkart data
N

 (Lower of a & b to be sanctioned)

A

Finacle Code OD025

K
VE

5.28 Scheme for Financing Textile Units

VI

(BCC:BR:110:505 dated 04.10.2018)

(BCC:BR:111:605 dated 26.11.2019)
LA

Purpose Working Capital Requirement / Financing New Projects

U

Eligibility: All new and existing units (including taken over from other Banks) engaged
D

in textile activity including job worker / Traders falling under SME as per
D

regulatory as well as expanded definition.

 This scheme is now available in only five Zones namely
YE

Ahmedabad, Baroda, Chennai, Jaipur and Rajkot for both existing

and new customers.
r.

 For all other 13 Zones, the benefits under the scheme shall continue
M

for existing MSME accounts opened under this scheme, on following

terms: .
y:

 All Term Loans to continue at existing terms and conditions, till

repayment of the loan.
B

 All Working Capital accounts to continue till its review only.

ed

 On review, these working capital accounts may be financed, but

outside this scheme.(Without any existing benefit in ROI etc).
ad

 No further credit exposure to be undertaken under this scheme, in

existing MSME accounts. In addition to this, Branches to issue
letter to existing customers mentioning the changes in sanction

64 | P a g e
 terms and conditions as mentioned above.

Y1
Nature of Facility Term Loan / Demand Loan / Cash Credit / Non Fund Based
Limit Minimum: Rs. 25.00 Lakh

.(V
Maximum: Rs. 2500.00 Lakh
Margin For cash Credit: 25% on Stock and Book Debts (Min)
For Term Loan / Demand Loan:

Y
Factory Land & Building 30%

D
P& M / Other Fixed Assets 25%
Second Hand P & M (Under 30%

ED
TUF)
Second Hand P & M (Imported) 30%

R
Second Hand P & M (Indigenous 40%
outside TUF)

R
Period  -12- months, subject to annual review (for working capital)

A
 Max -9- years for Loan (including moratorium), subject to annual

M
review

U
Security Facility Security

K
Primary:

A
Term Loan 1st charge over entire Fixed Assets and
2nd charge over current assets

D
Cash Credit 1st charge on current asset and 1st / 2nd
N charge over fixed assets
A
Collateral Security
N
 If exposure in up to Rs. 1000.00 Lakh, it is to be decided by
A

sanctioning authority.
 If exposure is above Rs. 1000.00 Lakh. 40% minimum
K

collateral security other than fixed assets already charged to

VE

the Bank.
Assessment As per Bank Guidelines
VI
LA

5.29 Baroda Budget Smartz Product Tie up with Lava International Ltd.
U

(BCC:BR:110:612 dated 13.12.2018

Purpose Working Capital requirement of retailers for procuring mobile phones
D

of Lava International Ltd for sales

D

Eligibility: Individual / Proprietorship / Partnership / Private Ltd Co.

YE

(HUF and Public Ltd Co not eligible)

Nature of Facility Cash Credit
Limit Minimum: Rs. 5.00 Lakh
r.

Maximum: Rs. 15.00 Lakh

M

Margin 25%
y:

Period -12- months, subject to annual review

Security  Hypo of receivables & Hypo of Stocks
B

 CGTMSE coverage, up to the loan limit of Rs. 10.00 Lakh

 Locking of Overdraft account with Flipkart for routing entire
ed

proceeds
ad

Assessment As per extant Guidelines

Other Condition  LAVA will introduce the retailed after due diligence through
comfort letter

65 | P a g e
  LAVA will recommend the retailed and limit based on the need,

Y1
which will be indicative limit.

.(V
5.30 Baroda Overdraft E- Commerce Product Tie up with Amazon
(BCC:BR:110:170 dated 28.03.2018 & 109:125 dated 09.08.2017)

Y
Purpose Working Capital requirement for selling online goods over E- Commerce

D
Platform

ED
Eligibility: Individuals, Proprietorship Firm, Registered Partnership firm, Limited
Liability Partnership, Private Limited Company, Limited companies, Trust,

R
Co Operative Societies etc. (Application will be received directly through
Flipkart)

R
HUF and Public Limited co. not eligible

A
Nature of Facility Overdraft

M
Limit Minimum: Rs. 1.00 Lakh
Maximum: Rs. 25.00 Lakh

U
Margin Nil

K
Period -12- months, subject to annual review

A
Security  Hypo of receivables arising out of online E- Commerce Platform

D
 Hypo of Stocks
 CGTMSE coverage, if applicable
N
 Locking of Overdraft account with Flipkart for routing entire
A
proceeds
N

Assessment  20% of annualized net pay out given by Amazon during last -6-
A

months based on Bank statement / Amazon data

K

 Limit recommended by Amazon based on the vintage / future

VE

sales (Lower of a & b to be sanctioned)

Finacle code OD025
VI

5.31 Baroda Tankerz

LA

(BCC:BR:110:576 dated 28.12.2018

Purpose For the purchase of New Tanker Truck for commercial use with Oil
U

Marketing companies
D

Applications sourced by DICCI in respect of SC/ST entrepreneurs who

D

have secured tender from OMCs.

Eligibility: Resident Indian National as under:
YE

 Individual / Proprietorship / Partnership / Companies / LLP

 HUF not eligible
r.

Nature of Facility Term Loan / Demand Loan / Clean Overdraft / Bank Guarantee
M

Limit Above Rs. 10.00 Lakh and maximum Rs. 100.00 Lakh
Overdraft : Maximum Rs. 1.00 Lakh per vehicle
y:

Bank Guarantee : As per the tender documents

10% – 25%
B

Margin
Period  -36- months, subject to annual review (in case of Overdraft)
ed

 Max -66- months for Loan (including moratorium of -6- months),

subject to annual review (In case of Loan)
ad

Security Hypothecation of vehicle financed

Assessment As per the viability sheet of the scheme

66 | P a g e
 5.32 Baroda Stayz

Y1
(BCC:BR:110:555 dated 01.11.2018
Purpose To provide financial assistance to Hotel Owners / Lessee for

.(V
refurbishment of hotel rooms / equipment of rooms as per OYO
designed specifications
Eligibility:  Individual / Proprietorship / Partnership / Private Ltd Co.

Y
engaged in Hotel business

D
 (HUF and Public Ltd Co not eligible)

ED
 Business unit should be established for more than -6- months
and ‘A’ rated by OYO

R
Nature of Facility Term Loan / Demand Loan
Limit Minimum: Rs. 5.00 Lakh

R
Maximum: Rs. 25.00 Lakh

A
Margin 25%

M
Period -60- months, subject to annual review
Security  Charged on assets created out of Loan amount

U
Assessment As per extant Guidelines

K
Other Condition  OYO will introduce the retailed after due diligence through

A
letter

D
 OYO will recommend the retailed and limit based on the need,
N
which will be indicative limit.
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
ad

67 | P a g e
 GIST OF CIRCULAR – MSME

Y1
CIRCULAR No. DATE SUBJECT
BCC BR 110290 11.06.18 MSME (NON REGULATORY) DEFINITION REVISED

.(V
BCC BR 110/304 11.06.18 MSMSE – REVISED APPROACH TO PRICING (RS 25 LACS TO RS
5 CRORES)
BCC BR 110 127 16.03.18 GUARANTEE FEE COLLECTION PROCESS IN FINACLE

Y
BCC BR 110 129 17.03.2018 BOB WEAVER MUDRA SCHEME

D
BCC BR 110 75 14.02.2018 DISCRETIONARY POWERS FOR DEVIATIONS IN RATIOS FOR

ED
MSME ACCOUNTS
DETAILED IN CHAPTER FIVE RATIO ANALYSIS

R
BCC:BR:106:200 30.05.14 DT.30.05.2014
BCC:BR:108:423 14.09.16 DT.14.09.2016

R
CLSS SCHEME

A
BCC BR 110 194 14.09.16 INTERNAL CREDIT RATING SYSTEM- MSMES

M
BCC: BR: 108:499 21.10.16 CREDIT RATING OF CORPORATE ACCOUNTS

U
BCC:BR:109:514 03.10.17 DAY NULM SCHEME

K
BCC:BR:109:514 02.04.16 STAND UP INDIA

A
BCC:BR:108:456 30.09.16 BCSBI W.R.T MSE

D
BCC: BR: 107:239 27.05.15 PMMY SCHEME
BCC:BR: 108:469 04.10.16 N
COVERAGE OF ALLIED ACTIVITIES UNDER PMMY
OUR BANK’S MOU (UNDER PMMY)
A
BCC:BR:109:540 13.10.17
BCC/BR/110/183 10.04.18 CGTMSE -GIST OF UPDATED GUIDELINES W.E.F. 01.04.2018)
N
A

BCC BR 109 103 16.02.17 MODIFICATIONS IN TURNOVER METHOD OF LENDING

K

BCC/BR/110/507 06.10.17 PMEGP-ADDITIONAL FINANCIAL ASSISTANCE

VE

BCC:BR:110:521 12.10.2018 CGTMSE-MODIFIED GUIDELINES FOR MICRO AND SMALL

ENTERPRISE
VI

BCC:BR:110/530 19.10.2018 PENAL/ADDITIONAL INTEREST ON DEFAULT OF REPAYMENT OF

LOAN
LA

BCC:BR:110:547 02.11.2018 100 DISTRICTS,100 SECTORS CAMPAIGN FOR NEW MSME

ACCOUNTS
U

BCC:BR:110:559 14.11.2018 DAY-NULM SCHEME(MANDATORY DATA FIELDS)

BCC:BR:110:610 14/12/2018 MASTER CIRCULAR –DAY NULM
D

BCC:BR:110:614 19/12/2018 NCGTC GUARANTEE FEE COLLECTION FOR STAND UP INDIA

D

ACCOUNTS
YE

BCC:BR:110:467 14/09/2018 MSME ACCOUNTS-CLASSIFICATION IN FINACLE

BCC:BR:110:449 03/09/2018 CGTMSE-CAPTURING THE INFORMATION IN FINACLE
BCC:BR:111:36 22/01/2019 SME NON REGULATORY OR SME EXPANDED DEFINITION
r.

BCC:BR:111:34 21/01/2019 PMMY LOAN TO SKILLED PROFESSIONALS

M

BCC:BR:111:491 30/09/2019 Introduction of Repo Rate Linked Lending Rate for MSE
CGTMSE – New Menu for claim details lodgement in Finacle
y:

BCC:BR:111:464 20/09/2019
BCC:BR:111:454 20/09/2019 Concessional Benefit for ZED Certified MSME Units
B

BCC:BR:112:32 30/01/2020 MODIFICATION IN BARODA CONTRACTOR LOAN

ed

BCC_BR_112_206 04.04.20 Modification in 'Baroda Property Pride, Scheme

BCC_BR_112_236 21.04.20 MSME Segment - Updation of Customer Information in Finacle
ad

BCC_BR_112_341 10.06.20 Reorganisation of Integrated SME Loan Factories to SME Branches,

setting up of additional SMELFs and SME Cells at ROs.
BCC_BR_112_236 21.04.20 MSME Segment - Updation of Customer Information in Finacle

68 | P a g e
 BCC_BR_112_404 08.07.20 Modification in Regulatory Definition of MSME

Y1
BCC_BR_112_425 20.07.20 Interest Subvention Scheme for MUDRA - Shishu Loan
BCC_BR_112_436 24.07.20 Credit Guarantee Scheme for Subordinate Debt CGSSD

.(V
BCC_BR_112_453 31.07.20 Rate of Interest to MSME Segment _ Revision in Credit Spreads
w.e.f.0'1.08.2020
BCC_BR_112_511 27.08.20 Regulatory MSME - Clarifications on revised definition

Y
BCC_BR_112_475 10.08.20 SOP for PM SVANIDHI

D
BCC_BR_112_544 18.09.20 Regulatory MSME - Waiver of administrative charges of Rs.2500 for

ED
conversion to BRLRR
BCC_BR_112_557 22.09.20 Exposure in CMR 7 & below ranked accounts

R
BCC_BR_112_550 29.09.20 Pre-approved MSME Loan for Current Account Holders based on
Cashflow Lending Model

R
BCC_BR_112_307 27.05.20 BGECLS

A
BCC_BR_112_468 07.08.20 BGECLS - Modifications

M
BCC_BR_112_491 18.08.20 BGECLS FAQs

U
BCC_BR_112_556 21.09.20 BGECLS Clarification
BCC_BR_112_534 05.09.20 Implementation of New CRISIL Rating Model ICON for Commercial

K
Advances Customers enjoying credit limits of Rs 200 lacs and above

A
(FB+NFB)

D
BCC_BR_112_492 20.08.20 PMEGP Scheme procedures
BCC_BR_112_559 23.09.20 N
BOB Guaranteed Emergency Credit Line Scheme (BGECLS) -
A
Personal Corporate Guarantee
BCC: BR: 112:637 20.10.2020 PM SVANidhi Scheme' for Street Vendors - Modifications
N

BCC: BR: 113:81 06.02.2021 Udyam Registration

A

BCC: BR: 113:73 01.02.2021 BOBICON

K

BCC: BR: 113:122 04.03.2021 Commitment charges For MSME borrower

VE

BCC:BR:113:121 04.03.2021 PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme

- Revision in CRIF score criteria
VI
LA
U
D

Sr. NAME OF THE MSME PRODUCT Reference

No.
D

1. SME SHORT TERM LOAN (ONLY TO EXISTING

YE

BCC:BR:109:119 DATED 28.02.2017

BORROWERS)-
2. SME MEDIUM TERM LOAN (ONLY TO EXISTING
BCC:BR:109:119 DATED 28.02.2017)
BORROWERS)-
r.

3. BARODA VIDYASTHALI Loan

M

BCC:BR:111:132 DATED 12/03/2019

4. BARODA AROGYADHAM-
y:

BCC:BR:111:131 DATED 12/03/2019

B

5. BARODA SCHEME FOR PROFESSIONAL-

BCC:BR:111:127 DATED 12/03/2019
ed

6. BARODA SME LOAN PACK-

BCC:BR:109:119 DATED 28.02.2017
ad

7. MSME CAPEX CARD & CAPEX LOAN

BCC:BR:109:119 DATED 28.02.2017

69 | P a g e
 8. BARODA LOAN FOR RESTAURANTS

Y1
BCC:BR:111:135 DATED 12/03/2019)
9. BARODA E BUSINESS PACK

.(V
BCC MSME booklet
10. BARODA CONTRACTOR SCHEME
(BCC:BR:111:128 DATED 12/03/2019)

Y
11. BARODA PROPERTY PRIDE-
BCC:BR:111:126 DATED 12/03/2019

D
BCC:BR:112:206 dated 04.04.2020

ED
12. BOB LAGHU UDHYAMI CREDIT CARD (ONLY TO EXISTING
BCC:BR:109:119 DATED 28.02.2017
BORROWERS )-

R
13. NHFDC REFINANCE-COLLATERAL FREE LOAN FOR SELF
BCC:BR:111:173 DATED 04-04-2019

R
EMPLOYMENT WITH DISABILITY
14. BARODA GST RECEIVABLE CARD FOR MSME

A
BCC:BR:111:172 DATED 04/04/2019
ENTREPRENEURS-

M
AREA SPECIFIC SCHEME FOR CONTRACTOR – MUMBAI-

U
16.
BCC:BR:111:229 DT 17/05/2019

K
17. EXTENSION OF SCOPE OF COMMERCIAL VEHICLE

A
(BCC:BR:111:299 dt 27.06.2019)
FINANCE TO THREE WHEELER SEGMENT

D
18. BARODA SME GOLD CARD SCHEME -
BCC:BR:109:119 DATED 28.02.2017
19. BOB ARTISAN CREDIT CARD (ONLY TO N
EXISTING
A
BORROWERS )- BCC:BR:109:119 DATED 28.02.2017
N
A

20. BOB WEAVERS MUDRA SCHEME-

BCC:BR:109:119 DATED 28.02.2017
K

21. BOB MSE GENERAL CREDIT CARD-

VE

BCC:BR:111/136 DATED 12/03/2019

VI

22. SCHEME FOR FINANCING SME BORROWERS FOR

PURCHASE OF NEW VEHICLES BCC:BR:109:119 DATED 28.02.2017
LA

BCC:BR:109:119 DATED 31-03-2019

23. COMPOSITE LOAN
- BCC:BR:109:119 DATED 28.02.2017
U

24. MSME CAPEX CARD & CAPEX LOAN-

BCC:BR:109:119 DATED 28.02.2017
D
D

25. BARODA LOAN TO BUSINESS CORRESPONDENTS

BCC:BR:110:369 DATED 21.07.2018 &
YE

BCC:BR:110:367 DT. 19.07.2018)

r.

26. COMMERCIAL VEHICLE FINANCE PRODUCT

PROGRAMME- BCC:BR:111:133 DATED 14/03/2019
M

27. VENDORS BILL DISCOUNTING PRODUCT FOR VENDORS,

y:

SUPPLIERS OF LARGE REAL ESTATE DEVELOPERS' (BCC:BR: 110:138 DATED 17.03.2018)

B

28. BILL/ INVOICE DISCOUNTING UNDER VALUE CHAIN –

BCC: BR: 111/172 DATED 04/04/2019.
ed

29. BARODA OVERDRAFT E-COMMERCE PRODUCT TIE UP

WITH FLIPKART (BCC:BR:110:373 DATED 24.07.2018)
ad

30. BARODA OVERDRAFT E-COMMERCE PRODUCT –TIE UP

WITH AMAZON (BCC: BR: 110:170 DATED 28.03.2018 &
BCC: BR: 109/125 DATED 09/08/2017.

70 | P a g e
 31. SUPPLY CHAIN FINANCE PRODUCT

Y1
(BCC:BR:111:05 DATED 02/01/2019)
32. BARODA E-BUSINESS PACK

.(V
(BCC:BR: 109:346 DATED 12.07.2017)
33. FINANCE TO TEXTILE UNITS
(BCC:BR:110:505 DATED 04.10.2018)

Y
34. BARODA BUDGET SMARTZ
( BCC:BR:110:612 DATED 13.12.2018 )

D
ED
35. BARODA TANKERZ
BCC:BR: 110:576 DATED 28.12.2018 )
36. BARODA STAYZ

R
(BCC:BR:110:555 DATED 01.11.2018)

R
37. BARODA LOAN FOR RESTAURANT
(BCC:BR:111:135 DATED 12/03/2019)

A
M
Thank You

U
K
A
D
N
A
N
A
K
VE
VI
LA
U
D
D
YE
r.
M
y:
B
ed
ad

71 | P a g e
 Our Core
Values

Y
.(V
Y
D
ED
R
R
Integrity - We are ethical and transparent in our

A
words, actions and dealings with all stakeholders

M
U
K
A
D
Customer Centricity - Our customers’ interests lie
N
at the core of all our actions

Handbook
A
N
A
K
VE

Courage - We are resilient in the face of adversity

VI

and having faith in our beliefs

LA
U
D
D

Passionate Ownership - We display energy,

YE

enthusiasm and commitment towards our Bank

and we work together for the Bank.
r.
M
y:
B

Innovation - We create value through new ideas

ed
ad

Excellence - We strive for continuous

improvement in our policies, systems and
processes.