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SSI Charter
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With a view to increasing the credit flow to SSI, the Bank has come out with ‘
SSI Charter'. The charter brings out the corporate goals of the Bank for increasing the credit flow
to SSI. They are as follows:
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| 1. |
SSI is the Thrust Area of the Bank and forms part of Priority
Sector Lending. |
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| 2. |
"Accelerated SSI Lending" is the motto of the Bank for SSI. |
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| 3. |
SSI loans are considered on top priority. |
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| 4. |
In order to ensure increased disbursements to SSI, the bank is
coming out with Special SSI Credit Plan, envisaging disbursement target under various sub sectors
of SSI. |
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| 5. |
Special emphasis is laid on financing Artisans, Village &
Cottage Industries, Tiny Units, Small Scale Service & Business Enterprises. |
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| 6. |
It is the endeavour of the bank to ensure that 60% of SSI credit
goes to Tiny Sector. |
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| 7. |
SSI loans upto Rs.5 lakh is totally collateral free to stimulate
growth of small units. |
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| 8. |
SSI loans above Rs.5 lakh and upto Rs.25 lakh is also collateral
free subject to good track record and financial position of the unit. |
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| 9. |
All fund-based loans sanctioned to SSI upto Rs.25 lakhs without
collateral security and/or third party guarantee will be covered under Credit Guarantee Fund Scheme
to avail of guarantee cover. |
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| 10. |
Composite Loan under Single Window granted upto Rs.50 lakh. |
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| 11. |
The Bank is offering the following special schemes to SSI
sector: |
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a. |
Liquidity Finance Scheme to meet the shortfall in net working
capital |
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b. |
Soft Loans to meet the equity gap under the National Equity Fund Scheme |
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c. |
KVIC Margin Money Scheme to promote Village & Cottage Industries |
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d. |
Interest Incentive Scheme under Technology Upgradation Fund Scheme for Textile
and Jute Industries |
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e. |
Credit Linked Capital Subsidy Scheme for specified Industries in SSI
sector |
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f. |
Laghu Udyami Card upto Rs.10 lakh to provide hassle free working capital
credit |
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g. |
Artisan Credit Card upto Rs.2 lakh to provide hassle free credit (both term
Loan and Working Capital) to Artisans. |
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| 12. |
Special thrust on SSI loans to Women and Ex-Servicemen
entrepreneurs. |
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| 13. |
SSI loan applications are simplified and standardised. The Bank is
providing the necessary information to the entrepreneurs in one go under Fair Practices Code. |
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| 14. |
SSI loan applications are disposed of within the following time
frame subject to the applications being complete in all respects: |
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a. |
Loans upto Rs.25,OOO/- : 2 weeks |
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b. |
Loans above Rs.25,OOO/- : 8-9 weeks |
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| 15. |
The Bank is offering an interest rate band width of PLR-2% to
PLR+2% for SSI loans, based on the quantum of loan, to ensure cheap SSI credit |
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| Quantum of loan |
Interest Rate |
| Loans upto Rs.25,000 |
PLR – 2 % |
| Loans above Rs.25,000 and upto Rs.2 lakh |
PLR – 1 % |
| Loans above Rs.2 lakh and upto Rs.25 lakh |
PLR + 1.5 % |
| Loans above Rs.25 lakh |
PLR + 2 % |
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| 16. |
In respect of Specified hosiery / hand tool/Stationery / drug
industry, investment cost upto Rs.5 crore on Plant & Machinery comes under SSI. It is the
endeavour of the bank to encourage these sectors, especially specified hosiery / hand
tool/stationery sectors, in view of their popularity. |
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| 17. |
IT related activities are encouraged, as the same are brought under
the ambit of SSI. |
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| 18. |
It would be the endeavour of the Bank to promote area specific SSI
clusters. |
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