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Andhra Bank MSME Loan

Overview

In the world of business, there are times when financing support is required to move ahead. This can be for expansion, setting up a new unit, purchase of new production tool or machinery or easing out working capital requirements. Micro, Small and Medium Enterprises (MSME) loans have been made available for such purposes and helps in boosting overall business. Andhra Bank offers MSME Loans through many schemes to suit the needs of different borrowers. Andhra Bank MSME Loans are broadly categorised into Manufacturing and Service Sectors wherein investments are made mainly in plant & machinery and Equipment. Financing amount ranges from a maximum of Rs. 25 lacs in the Micro Enterprises segment to Rs. 5 crores in Medium Enterprises segment. More details on Andhra Bank MSME Loans can be read below.

List of Andhra Bank MSME Loans

Andhra Bank offers many schemes through MSME Loans.The details are outlined below:

Credit facilities are offered up to Rs. 5 crores. The margins on this credit are:

  • 25% on stocks
  • 30% on receivables up to 90 days only
  • 25% on term loan for equipment, tools, furniture & fixture, computer hard wares etc.
  • 50% on term loan for acquiring or construction of premises
  • 20% cash for letter of credit/bank guarantee

1) MSME - Mitra

ObjectiveTo finance outstanding GST receivables of MSME Units
Eligibility
  • Business unit must belong to the MSME category and should be availing regular fund based working capital limits from the bank
  • Account should be standard
  • Satisfactory dealing with the bank
Quantum of loan20% of existing fund based working capital limit or 80% of input tax credit, whichever is lower
TenureOne bullet payment in 8 months
Collateral SecurityNIL
Processing FeesRs. 100 per lac subject to maximum of Rs. 25,000/-

2) ABhivrudhi - Financing to MSEs

ObjectiveTo finance working capital and TL requirements of MSE borrowers (including Traders) against property
EligibilityAll MSE units subject to investment in Plant & Machinery/Equipment as per MSMED Act 2006.
  • The applicant should have a minimum of
  • years standing and profit making for the past 2 years.
  • New entrants (only for limits up to Rs 1.00 Cr) can also be considered provided the estimates /projections are reasonable.
Quantum of loanMinimum: Above Rs 10 lacs

Maximum: Rs 6.00 Crs

TenureFor TL: Repayable in maximum 7 years including holiday period.

For WC limits: 2 years

Collateral SecurityPrimary for TL: All the assets created out of the TL

Primary for BG/LC: Cash margin of minimum 15%, counter guarantee of the applicant and extension of charge on entire current assets of the unit

Processing FeesAs per extant loan policy guidelines of the bank

3) Term Finance

ObjectiveFor setting up new units/ Increasing the capacity of existing units/ Diversification/Modernization.
EligibilityBased on Technical viability and economic feasibility of the project to service the debt
Quantum of loanNIL
Tenure5-7 years excluding holiday period.
Collateral SecurityPrimary: First charge on assets created out of Term loan.

Collateral: No collateral for credit limits up to Rs.10 lacs in case of stand-alone Term loan/Composite loan. For credit limits above Rs.10 lacs as per guidelines of the Bank

Processing FeesNIL

4) Standby Term Loan

ObjectiveFor acquiring additional machinery like, Lathe machines, Generator, Balancing equipment, Vehicles etc
Eligibility“A” and above rated MSME borrowers satisfying the availability of long-term funds for repayment of the loan
Quantum of loan20% of the Fund based limits (Term loan & Working capital) subject to a cap of Rs.20 lacs
TenureMaximum 5 years
Collateral SecurityPrimary: Assets to be purchased out of the loan

Collateral: Existing collateral securities continue

Processing FeesNIL

5) Artisans Credit Card (ACC) Scheme

ObjectiveTo provide adequate and timely assistance to the artisans to meet their credit requirements for both term loan and working capital.
Eligibility
  • All artisans involved in production/ manufacturing process
  • Artisans to be registered with Development Commissioner (Handicrafts)
  • Thrust in financing would be on clusters of artisans and artisans who have joined to form self Help Groups (SHGs)
  • Beneficiaries of other Govt sponsored loan schemes will not be eligible
Quantum of loanIndividual Rs.30,000/- and Rs.2.00 lacs per Group
Tenure3 Years subject to annual review
Collateral SecurityHypothecation of assets created out of the loan

6) AB Power Tools (Shakti)

ObjectiveTo provide Term loans for purchase of Power Tools and need based working capital
EligibilityAll artisans and self-employed persons who are engaged in the field of Carpentry & wood works, servicing & repairs of automobiles, electrical and sanitary servicing
Quantum of loanMaximum loan amount is Rs.1 lac or as per the actual requirement
TenureRepayable in 3-5 years in appropriate EMI with 6 months repayment holiday.
Collateral SecurityHypothecation of Tool Kits/Stock in Trade

7) Technology upgradation fund scheme (TUFs) for textile & jute industries in SSI Sector

ObjectiveA scheme devised by Govt. of India, Ministry of Textiles, to enable SSI units (Textile/Jute industrial sector) to induct State-of-the-art technology
EligibilitySole Proprietorships, Partnerships, Co-operative Societies, Private/Public limited companies.
  • Existing units with or without expansion and new units
  • Existing units proposing to modernize and/or expansion with state-of-the-art-technology
  • New units which are being set up with appropriate technology
Quantum of loanNo maximum limit
TenureWithin 7 years including moratorium up to 1 year
Collateral SecurityFirst charge on fixed assets financed under the scheme additional security such as personal guarantees, pledge of promoters, share holdings

8) Credit Guarantee Fund Trust for Micro and Small Enterprises

EligibilityGuarantee Cover is provided by the trust for the credit facilities to an extent of Rs. 200 lacs without any collateral security or third-party guarantees

Credit facilities sanctioned to an eligible borrower with interest rate more than 4% over base rate are not eligible

Borrower CategoryUp to Rs.5 lacAbove Rs.5 lac Up to Rs. 50 lacsAbove Rs.50 lac up to Rs. 100 lacs
Micro Enterprises *85% of the Amount in Default subject to a maximum of Rs. 4.25 lacs75% of the Amount in Default subject to a maximum of Rs.37.50 lacs50 % of the amount in default subject to a maximum of Rs. 100 lacs
Women Entrepreneurs / Units located in North East Region (incl. Sikkim) (Other than credit facility up to Rs.5 lacs to micro enterprises)80% of the amount in Default subject to a maximum of Rs. 40 lacs50 % of the amount in default subject to a maximum of Rs. 100 lacs
All other category of borrowers75% of the amount in Default subject to a maximum of Rs. 37.5 lacs50 % of the amount in default subject to a maximum of Rs. 100 lacs

9) Pavala Vaddi Scheme

EligibilityNew Micro and Small Enterprises set up in Andhra Pradesh except Vizag, Vijayawada and Hyderabad. The units should be promptly repaying the loan instalments
Availing Term LoanLoan should be availed on fixed capital investment by the eligible new Micro and Small Enterprises on or after 1st April 2008 More than 75% of the plant and machinery should be new
Amount of reimbursementReimbursable interest on term loan is the portion that exceeds 3% per annum
Mode of reimbursementMaximum limit of 9% on half-yearly basis

10) Scheme of Technology Upgradation

PurposeUpgradation of processing facilities
Eligibility
  • 25% cost of plant and machinery and technical civil works subject to a maximum of Rs. 50 lacs
  • 33% up to Rs. 75 lacs in other areas
  • Only new plant and machinery
  • Application should be done before commencement of commercial production
  • Individuals, firms-operatives and companies are eligible
Scope and Spread
  • Sectors in food processing such as fruits, vegetables, milk products, meat, poultry, fishery, cereal, rice milling, flour milling and so on are covered
  • Activities of aerated water, packaged drinking water and soft drinks are not covered
  • Sanctions under the scheme to women, SC/ST will be given priority

11) Mutual Credit guarantee scheme in association with ALEAP & CGSTI for women entrepreneurs

EligibilitySingle eligible borrower in Micro and Small Enterprises sector for credit facility up to Rs. 100 lacs excluding retail trade without any collateral security
Loan typeTerm Loans and Working Capital limits
Loan amountRs. 15 lacs
Collateral SecurityNIL
Tenure of Guarantee Cover5 years or block of 5 years where working capital is considered
Amount of Guarantee Cover75% of Term Loan outstanding

75% Non-fund based and Fund based Working Capital Limit or outstanding whichever is lesser

12) Credit Linked Capital Subsidy Scheme for Technology Upgradation of small-scale enterprises

PurposeTechnology upgradation for SSI units in specified products/sub-sectors by providing capital subsidy for induction of well-established and improved technologies
Eligibility
  • Sole proprietorships, partnerships, co-operative societies, private and public limited companies in SSI sector (priority to women entrepreneurs)
  • Available only for those projects that have been sanctioned by eligible Primary Lending Institutions on or after 29th May 2005
  • Industry graduating from small scale to medium scale on account of sanction of additional loan under CLCSS
  • Labour Intensive and export oriented new sectors
Loan amountMaximum limit is Rs. 100 lacs Capital Subsidy is 15% of eligible plant and machinery subject to Rs.15 lacs

13) National Equity Fund Scheme

EligibilityNew projects/existing units under Tiny/Small scale sector/service enterprises
Project Cost
  • Not exceeding Rs.50 lacs (including margin for working capital) in the case of new projects
  • Not exceeding Rs.25 lakhs in case of existing units/service entrepreneurs
Loan AmountAmount of gap in equity as per prescribed DER after taking into account promoters’ contribution, to the extent of 25% of the project cost subject to a maximum of Rs.10 lakhs
Repayment of LoanSoft loan is repayable in 7 years (including moratorium of 3 years) in tune with the repayment period of normal term loan permitted by Bank for the project. Non repayment of Soft loan would attract interest as stipulated by SIDBI.

14) Prime Minister Employment Generation Programme

Purpose
  • To generate employment opportunities in both rural and urban areas by setting up self-employment ventures
  • Provide continuous and sustainable employment to traditional and prospective artisans and rural and urban youth in the country
  • Increase wage earning capacity of artisans
Eligibility
  • Any individual above the age of 18 years
  • Only new projects
  • Projects above Rs. 10 lacs in manufacturing sector and Rs. 5 lacs in business/service sector
  • Self- help groups
  • One person from one family
  • Existing units are not eligible
Bank Finance
  • 90% in general category
  • 95% in special category
Repayment3 to 7 years

15) AB Laghu Udhyami Credit Card (LUCC) Scheme

PurposeMeet the credit requirements of Small Business, Retail Traders, Professional and self-employed people, artisans, village industries, micro and small enterprises
Loan amountRs. 10 lacs per borrower
Margin25%
SecurityHypothecation of stock in trade receivables, machinery, office equipment etc.
Collateral SecurityExisting securities along with co-obligation/guarantee
Validity3 years

16) Open Cash Credit

PurposeFor meeting working capital requirement of MSME Units
Loan tenureRenewable every year
Margin20%-25% in the case of stocks and 30% in the case of book debts/receivables
SecurityStocks and Receivables
Collateral SecurityUp to Rs. 10 lacs: NIL

Above Rs. 10 lacs: Land and Building, Plant and Machinery, other fixed assets

17) Composite Loan Scheme

PurposeFor supporting equipment finance or working capital or both
EligibilityArtisan, Village Industries, Cottage Industries and Micro enterprises
Margin

Up to Rs. 25,000 – Nil

Above Rs. 25,000 up to Rs. 25 lacs – 15% to 25%

Above Rs. 25 lacs up to Rs. 100 lacs – as per bank guidelines

Loan AmountMaximum Rs. 100 lacs
SecurityPledge, Hypothecation, Mortgage of Assets
Collateral Security

Up to Rs. 10 lacs: NIL

Above Rs. 10 lacs: As per bank policy

18) AB Doctor Plus

This scheme helps in providing finance to qualified medical practitioners and doctors in any branch of medical science

Purpose
  • To set up clinics, pathological/x-ray/sonographic
  • Diagnostic labs
  • Furnishing of nursing homes
  • Purchase of Ambulance working capital requirement
Eligibility
  • Individuals, Firms, Limited Liability Firms, Companies, Trusts and Societies engaged in offering medical services
  • All practitioners must hold a recognized graduate degree in any branch of medicine/surgery/dental science etc.
Margin25% for equipment/ambulance/furnishing

Working capital limit: 75% of the revenue expenditure

Loan AmountMaximum Rs. 20 lacs
Collateral SecurityNot required
Nature of facilityTerm Loan/OD/Both
Rate of InterestBase Rate + 3.25%
Repayment ScheduleMaximum 84 months

For working capital limits – 1 year

How to apply for Andhra Bank MSME Loan

Andhra Bank MSME Loan can be applied online through the official website. The application form can be downloaded or accessed and completed details needs to be submitted for further processing. One can also drop into the nearest branch of the bank for consultation and information on the product. The bank representative will assist you with details and advice on the best suited loan on the basis of your business profile. Application form can be submitted physically at the bank as well.

FAQs: Andhra Bank MSME Loan

1.What is the tenure for MSME – Mitra loan from Andhra Bank?

The tenure for the MSME – Mitra Loan is one bullet payment in 8 months.

2. What are the eligibility criteria for ABhivrudhi - Financing to MSEs?

3. What is the maximum amount of loan available on Allahabad Bank Weavers Credit Card (WCC) Scheme?

The maximum loan amount available to an individual under this scheme is Rs. 2 lacs.

4. What is the Allahabad Bank Laghu Udhyami Credit Card Scheme?

Under this scheme, financial assistance is offered for providing working capital for the business. Term loan is also available for purchasing production tools or equipment for the process.

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