MSME

 

 

This 'Online MSME Loan Application and e-Tracking System' will allow MSME Sector Customers / Prospective borrowers of Vijaya Bank to apply and e-track the status of their MSME Loan Application at various Stages of Loan Processing. However, it should be noted that, applying online for the MSME Loan is not commitment on part of the Bank to Sanction the Loan. After applying online, applicant has to visit the identified Branch with required documents and any other information sought by the Branch.

 

Rate of Interest applicable to MSME Advances:
 

 

Salient features of lending to Micro, Small & Medium Enterprises (MSMEs):

 

1. The MSMED Act 2006, which came into force w.e.f. 02/10/2006, defines the Micro, Small, and Medium Enterprises. As per the Act, the activities are classified into Manufacturing and Service Category.

The limits for investment in plant and machinery/equipment for manufacturing / service enterprise, as notified by Ministry of Micro, Small and Medium Enterprises, vide S.O.1642(E) dated September 9, 2006 are as under:-

 

Manufacturing Sector

 

 

Investment in plant and machinery

 

Micro Enterprises

Does not exceed twenty five lakh rupees

Small Enterprises

More than twenty five lakh rupees but does not exceed five crore rupees

Medium Enterprises

More than five crore rupees but does not exceed ten crore rupees

 

Service Sector

 

 

Investment in equipment

 

Micro Enterprises

Does not exceed ten lakh rupees

Small Enterprises

More than ten lakh rupees but does not exceed two crore rupees

Medium Enterprises

More than two crore rupees but does not exceed five crore rupees

In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries.

 


2.1 Security norms for MSMEs loans:

The Norms with regard to obtention of security or collateral security in respect of Micro and Small Enterprises (MSEs), except for vehicle loans mentioned in point no.2.2; are as under: 

 

 I

Loan amount

Security norms

For loans, not exceeding Rs 10 lakhs (Including loans granted under PMEGP of KVIC and other Govt schemes)

Collateral security shall not be insisted.

II

Above Rs. 10 lakhs upto Rs. 25 lakhs

If the units whose track record and financial position are good as per our bank records obtention/acceptance of collateral security may be dispensed with on case to case basis.

III

 

Above Rs. 10 lakhs upto Rs. 200 lakhs  

 

Collateral security will not be insisted where the loans are eligible to be covered under Credit Guarantee Fund Scheme for Micro and Small enterprises (CGTMSE). If the party is not willing to be covered under CGTMSE and agreeable to offer collateral security to the extent of 100% of the limit sanctioned, in such cases collateral security stipulated as per extant guidelines shall be obtained.

 

 

2.2 Security norms for commercial passenger/goods transport vehicles:

 

 

Loan amount

Security norms

 I

 

 

For loans up to

Rs.10 lacs:

a.    Hypothecation Of vehicle financed

b.    To be covered under Credit guarantee scheme.

II

For loans above

 

Rs.10 lakhs up to Rs.25 lacs: 

 

a.   Hypothecation Of vehicle financed.

b. Suitable third party guarantee acceptable to the Bank and suitable collateral security in the form of LIC policy or Fixed Deposit or Existing Vehicles (less than 5 yr old)or Property or combination of all three to the extent of 25% of the loan.

III

For loans above

Rs.25 lacs

a.    Hypothecation of vehicle

b.    Suitable third party guarantee acceptable to the Bank and

c.    Collateral security in the form of LIC policy or Fixed Deposit or Existing Vehicles(less than 5 yr old) or Property or combination of all three collateral securities to the extent of minimum 50% of the loan.

 

3.Performance and Credit Rating Scheme for Micro and Small Units(MSEs)

4. Udyog Aadhaar Number for MSMEs: Click

Here

 

to apply online and register for Udyog Aadhaar Number (UAN).  

 

5. Delayed payment to MSMEs

 

6 The bank is also implementing the Prime Minister’s Employment Generation Programme (PMEGP Scheme), Credit linked Capital Subsidy Scheme, Technology Upgradation Fund Scheme (TUFS) for Textiles & Jute Industries.

 

Technology Upgradation Fund Scheme for Textile and Jute Industry: 

 

 

 

 

Credit Linked Capital Subsidy Scheme

 

MSME Clusters   

Specialised MSME branches   

Vijaya Bank Self Employment Training Institute   

MSME Quarterly Data   

Rehabiliation of SICK MSE Units   

Rehabiliation of SICK MSE Units  (For Karnataka State)  

 

 

MOST IMPORTANT TERMS & CONDITIONS FOR MSME LOANS

 

 

CHECKLIST OF DOCUMENTS FOR MSME LOANS

 

 

Retail Schemes for MSME Sector:    

 

 

Bank has launched below mentioned tailor made retail schemes to suit the requirements of different types of MSME entrepreneurs/activities:

 

V-Swadesh

V-Entrepreneur

V-SOD

V-Cab

V-Mortgage

Loan to Road Transport operators (SRTO)

V-Vehicle

V-Swashakti

V-Doctor

V-Auditor

V-Restaurant

V-Dhaanya

      V- Cashew

 

 

 

Laghu Udyami Card

V- Mudra Card

V- Mudra Weavers’ Card

    

 FEEDBACK FROM CUSTOMERS 

 

GRIEVANCES REDRESSAL MECHANISM FOR MSMEs:
Sri Sreedhar Murthy M
Dy. General Manager
Credit – Retail & MSME
MAIL TO: dgmcreditretail@vijayabank.co.in

Name of the Nodal officer of the bank for MSME Complaints and queries:

Sri BASAVRAJ SADUGOL R
Asst. General Manager
Credit – Retail & MSME
MAIL TO: basavrajsadugolr@vijayabank.co.in


The Small Industries Development Bank of India (SIDBI) has launched ‘Udyami Mitra’ portal (www.udyamimitra.in) to improve accessibility of Credit for the MSMEs.
Under the portal entrepreneurs can apply for loan without physically visiting bank branches. It also has facility for uploading all necessary documents.
Through the portal the MSMEs can seek handholding support for getting finance. They can also select and apply for preferred banks.
Through the portal, the MSMEs can select from over 1 lakh bank branches, track their application status and avail multiple loan benefits.

 

TReDS Platform (Trade Receivable Discounting System)

Vijaya Bank has on boarded the TReDS platform floated by RXIL - Receivables Exchange of India (A joint venture between National Stock Exchange and SIDBI) and A.TReDS (A joint venture between Axis Bank and Mjunction Services) with competitive pricing. All our MSME Sellers willing to avail the factoring facility from the bank can upload the invoices on the registered TReDS platforms by completing the registration process and can avail the benefits of TReDS.

TReDS Platform (Trade Receivable Discounting System) is an institutional mechanism set up for financing of trade receivables of MSMEs in an online portal. TReDS is an initiative by RBI and is governed by the regulatory framework put in place by the Reserve Bank of India under the Payment and Settlement Systems Act 2007.

The main objective of the TReDS platform is to address the critical needs of MSMEs i.e, the twin issues of promptly en-cashing receivables and eliminating credit risk. TReDS platform of RXIL and A.TReDS are expected to be a catalyst in the growth of MSMEs by bringing in transparency in the business eco-system. 

TReDS platform enables discounting of invoices/bills of exchange of MSME sellers against large corporates, including Government departments and public sector undertakings, through an auction mechanism to ensure prompt realization of trade receivables at competitive market rates. 

The TReDS will provide the platform to bring different participants together for facilitating uploading, accepting, discounting, trading and settlement of the invoices/bills of MSMEs. On completing the registration as per the guidelines of the platform, participants can initiate transaction under TReDS.


Who can initiate TReDS transactions:

Both the seller and the buyer can initiate TReDS transactions for financing of trade receivables of MSME Sellers. When the MSME Seller uploads the invoices and bears the interest cost it is termed as “Factoring” i.e, (Single Seller – Multiple Buyers). In case of “Reverse Factoring” (Single Buyer – Multiple Sellers), the Buyer initiates the transaction and the interest cost is also borne by the Buyer.


Key benefits of TReDS are as under:


All Participants

Automated transparent platform

Paperless and hassle free

Cost Reduction


Benefits to Sellers

Competitive price discovery

Without recourse to Seller

MSMEs have the right to choose the best bid

Payment received on T+1 on successful auction

No follow-up with the buyers for payment

Not dependent on single financier

Enhanced productivity and efficient liquidity management

Widening the financing options


Benefits to Buyers

Compliant with MSMED Act, 2006

Can negotiate better terms with MSME Vendors

Lower cost of inputs for Buyers

Lower administrative cost

Can avail extended credit period

Competitive Price Discovery

Efficient cash-flow management

Ensure that their vendors are not strapped for cash/working capital 


Rate of Interest

ROI is linked to 3 months/6 months MCLR

 

 

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