MSME Schemes

MSME Schemes
Contents
OBC MSME-PLUS Scheme......................................................................................................................... 2
OBC MSME – VISHESH ............................................................................................................................... 4
“OBC – Tatkal - Working Capital” scheme For OBC MSME plus borrower .................................. 5
“OBC MSME – CDL (Contingency Demand loan)” – for existing MSME borrower ..................... 6
Oriental Sanjeevni (Old Doctor Plus) ...................................................................................................... 7
ORIENTAL BUSINESS LOAN SCHEME ................................................................................................ 10
Oriental Mortgage Loan Scheme (OMLS) – Modified Scheme ....................................................... 12
REVISED SCHEME FOR LOAN TO TRADERS - ORIENTAL UTTAM VYAPARI .......................... 14
Revised “Loan To Commission Agents /Arthiyas” Scheme........................................................... 16
“STAND UP INDIA” SCHEME .................................................................................................................. 19
PRADHAN MANTRI MUDRA YOJNA (PMMY) ...................................................................................... 20
Oriental Budget Hotels & Restaurants ................................................................................................. 22
LOAN AGAINST WARE HOUSE RECEIPT ........................................................................................... 24
Scheme for “Oriental Fleet Loan Scheme ........................................................................................... 26
ORIENTAL SCHEME FOR FINANCING AUTO / TAXIS/Small Cargo Vehicle............................... 27
OLA Tie-up for financing Taxies ............................................................................................................ 28
FINANCING TO EDUCATIONAL INSTITUTES (Term Loan) ............................................................. 30
FINANCING EDUCATIONAL INSTITUTIONS-OD ................................................................................ 32
Financing to Agro-Processing / Food Processing / Agro-Based Industries .............................. 35
SCHEME FOR FINANCING TO COLD STORAGE UNITS .................................................................. 36
UPDATED SCHEME FOR FINANCING OF RICE SHELLING UNITS ............................................... 37
UPDATED SCHEME FOR FINANCING OF COTTON GINNING UNITS ........................................... 39
Scheme for Financing of Potato Seed owers ..................................................................................... 41
Scheme for Financing Seed Producers/Processors ......................................................................... 44
SCHEME FOR FINANCING TO GREEN HOUSE / POLY HOUSE ................................................. 45
Revised GCC Scheme (General Credit Card Scheme) ..................................................................... 46
ORIENTAL SME TRANSPORT SCHEME............................................................................................... 48
ORIENTAL EQUIPMENT LOAN SCHEME ............................................................................................. 50
SCHEME FOR BEAUTY PARLOURS / BOUTIQUES / SALOONS / TAILORING BY WOMEN .. 51
ORIENTAL WEAVER CARD (OWC) SCHEME ..................................................................................... 52
1
No. 1 OBC MSME-PLUS Scheme
Circular No HO/MSME/24 /2017-18/327 Dated- 19.07.2017
Nature of facility Working Capital/Term Loan
Eligible  Proprietorship, Partnership firms, Limited Liability Partnerships
Entities (LLPs), Private / Public Ltd. Cos. (Existing as well as New Borrower)
 Internal Credit Risk Rating should be minimum OBC5 for last two years
(in case of existing borrower). For new borrowers rating should be
OBC4 and OBCGF4 in case of Greenfield projects
 External Credit Risk Rating from approved external rating agency of the
borrower needs to be obtained and the rating grade should be within
stipulated in the scheme.
Quantum of Upto ₹50.00Crore
Exposure
Appraisal/ As per Loan Policy of the Bank for working capital as well as for Term
Assessment Loan.
TEV study, if applicable, be obtained and all other guidelines be complied
with.
Acceptable Acceptable financial Ratio as per last audited Balance Sheet, latest
financial Ratio available SA certified Provisional Balance sheet (for existing Borrowers
only)-
Current Ratio/Adjusted Current Ratio:
 1.17:1 (for working capital limits up to ₹ 5.00crore)
 1.25:1 (for working capital limits above ₹ 5.00crore)
Current Ratio/Adjusted Current Ratio if collateral coverage is
more than 100%:
Debt Equity Ratio/ Adjusted DE ratio:- Upto 3:1
Leverage Ratio/ Adjusted Leverage Ratio:- Upto 4:1
DSCR Average DSCR minimum 1.50:1 in case of term loan and repayment
period maximum 7 years.
Security Primary: As per Bank’s Loan policy Norms
Collateral: Advance covered by collaterals covering at least 50% of the
exposure (FB+NFB).
Margin As per Bank’s loan policy/discretionary power chart/other guidelines issued
from time to time.
Conduct of Account should have been standard for last two years and should not
Account have been restructured in last two years (From the Banking system).
Not applicable for the newly established entities.
The unit should have a post-tax profit in each of the immediate preceding
Profitability two years. (Not applicable for newly established entities).
Rate of Interest Rate of Interest is linked to collateral security coverage:
(₹ in crore)
Collateral <= ₹ 10.00 cr >₹ 10.00 Cr upto ₹
Coverage Ratio 50.00Cr
50% upto 75% 1 Yr MCLR+2.00% 1 Yr MCLR+2.25%
Above 75% upto 1 Yr MCLR+1.75% 1 Yr MCLR+2.00%
100%
Above100% 1 Yr MCLR+1.25% 1 Yr MCLR+1.75%
Above 150% 1 Yr MCLR+1.00% 1 Yr MCLR+1.50%
2
Special status borrower already covered under old Mid Corporate
Scheme (circulated vide circular dt-06.01.15) may continue to be
covered under old scheme
Process Fee/ Concession of 50% will continue in subsequent years also if the
Upfront Fee account is eligible to be covered under the scheme.
Delegated Power As per delegated power chart circulated by RMD time to time.
Guarantee 25% concession on applicable charges for Borrower accounts
and LC having minimum OBC 4 rating or top three highest external credit
Commission ratings of the concerned RBI approved rating agencies.
Further, to above, accounts where collateral security is more than
150%, sanctioning authority can allow upto 50% concession in
applicable BG/LC commission and 25% concession in Buyers
Credit/Letter of Comfort commission (subject to condition that cost
of capital to the Bank is covered).
Others 1. 50% concession in charges pertaining to day to day
operations like ABB, Remittance charges & Cheque Book
issuance may be permitted by the respective sanctioning
authority.
2. Exposure to Real Estate and NBFC is not covered in the
proposed scheme.
3. The existing customer can be covered under this scheme on
becoming eligible before renewal also. However, the account
shall be renewed at the time of covering under this scheme.
4. Accounts already covered under this scheme shall become
ineligible under the scheme, if rating falls below 5.
5. Environmental related issues be guided as per policy.
Deviations/ Unless specifically provided otherwise in the Scheme itself, the
Relaxation In The Field Functionaries shall seek prior permission from HLCC-ED in
Scheme case of any deviation/waiver in scheme.
3
No. 2 OBC MSME – VISHESH
Facility Auto increase of Working Capital Limits for MSME (Medium &
Small Enterprises) borrowers – Effective from beginning of financial
year
Purpose To provide on the spot need based additional financial assistance.
Eligibility Qualified only OBC MSME Plus Borrower
 Minimum 2 Year satisfactory (Standard) conduct of account &
accounts should not have been restructured.
 Minimum 85% achievement of estimated sales on the basis of
which existing limits was assessed. After satisfactory evidence
of % of achievement of sale by way of VAT return or Provisional
financials certified by the auditors as drawn from the books of
the firm.
 Applicable for consortium advance also subject to NOC from
member banks.
Eligible Amount: Additional working capital facilities made available:
 25% of existing working capital facilities separately for FB & NFB
or 50% of the eligible limits on enhanced portion of projected
turnover whichever is less.
Sanctioning Up to discretionary power chart of Branch Incumbent i.e. eligible
Power amount under scheme above & existing sanctioned limits. If the
total amount exceeds then RLCC-RH.
Regular proposal be considered by respective authority. Branches
shall report this along with the office note in STM-41
ROI 0.50% over & above existing rate till regular sanction of enhanced
limits
Period of Max. Six months or upto the date of regular enhancement
additional Facility whichever is earlier.
Security Extension of charge on existing security & filling of charge with
ROC if applicable
Process Fee Nil
Turnaround time Max. 15 working days from the date of receipt of all information
from the borrower
Other Terms & This fund based facility shall be covered with DP.
conditions
4
No. 3 “OBC – Tatkal - Working Capital” scheme
For OBC MSME plus borrower
CIRCULAR No CIRCULAR No. HO/CAD/ /2016-17/ Date: 01.06.2016
Facility Working Capital Limits.
Purpose To provide on the spot need based additional financial
assistance (Request for facility should spell out justification)
Eligibility  Minimum 2 Year satisfactory (Standard Regular) conduct of

account in banking system & profit making entities.
Additional Facility Additional working capital facilities available:

Available:  15% of existing working capital facilities separately for FB &
NFB, Subject to Max. of ₹ 3.00crore.
ROI 1.00% additional ROI over & above the sanctioned ROI.
Period of additional Maximum 90 days (3 times in a Financial Year, maximum 180

Facility days and gap of 15 days in each availment)
Security Extension of charge on existing security & filling of charge with

ROC if applicable.
Documentations As per Bank Policy (Along with sanction i.e. DOC-13 etc.)
Process Fee NIL
Other Terms &  Borrower can enjoy only one facility either OBC – Tatkal -
conditions Working Capital or Adhoc limit at a time
 All other terms & conditions of sanction shall be complied
with
5
No. 4 “OBC MSME – CDL (Contingency Demand loan)”
– for existing MSME borrower
Circular No CIRCULAR No. HO/CAD/15/2016-17/154 Date: 01.06.2016
Nature of Contingency Demand loan for MSME borrowers.
facility
Purpose To meet future emergency capex requirement of the unit towards
debottlenecking/ breakdown etc. to cater the need of MSME
(Manufacturing & Service sector).
Eligible Borrower who Qualify MSME Plus schematic compliance.

Entities Minimum 2 Year satisfactory (Standard) conduct of account in banking
system and accounts should not have been restructured & in profit for 2
years as per last review.
At the time of regular sanction / review.
Security Assets to be created out of bank finance & extension of charge on
existing assets at the time of sanction of regular term loan.
Margin As applicable / already approved in case of existing TL.
Quantum Upto 15% of the investment cost in P& M (Gross Block value) as per last
of loan audited Balance sheet with max. cap of ₹ 1.50crore.
Requirement CDL will be based on documents evidencing/justifying the contingency
for CDL and invoice
ROI 1.00% over & above existing rate on fund based facility till regular
sanction of Term loan.
Process Fee Nil
Repayment Max. 12 months, within which it will be converted into regular Term loan.
Period This contingency loan to be adjusted by sanction of regular Term loan.
Actual repayment will be fixed when regular Term loan is sanctioned
depending upon cash flow.
6
No. 5 Oriental Sanjeevni (Old Doctor Plus)
CIRCULAR No HO/MSME/ 10 /2016-17/1013 Dated-12.01.2017
Purpose To meet the financial requirements for setting up of new Nursing Home/
Clinic / Hospital / Veterinary Hospital / Infrastructure for Medical
Tourism including Pathological Laboratory, Diagnostic centre Expansion /
renovation / modernization of existing Nursing Home / Hospital / Clinic
including Pathological Laboratory, Diagnostic centre, Purchase of medical
equipments (including Vehicles, ambulances and Implants) as also
office equipments, viz. computers, air conditioners, office furniture,
Purchase of ambulance etc. and to meet working capital requirements
including takeover of accounts subject to compliance of terms and
conditions specified in the scheme.
Eligibility Individuals (including Proprietorship firms) should have requisite
Criteria qualification in any branch of medical science from a recognized
University and having minimum qualification as under:
MBBS/ BDS (Dentist)/ BHMS /BAMS/ Veterinary /Physiotherapist
Further Post Graduate or diploma qualification is mandatory for
financing of specialized equipment like CT SCAN, MRI SCAN and
PET Scan. OR
All entities, engaged in providing medical including veterinary / diagnostic
services / to the Society having valid license to conduct business by
Municipal / Local / Administration.
Further for finance of medical equipment above entities must have a
minimum experience of 2 years of operations of the diagnostic centre,
pathological lab, hospital, nursing home etc. Further, they have the required
approvals or registrations from the statutory authority and employ qualified
doctors
Loan Amount Area Amount (In case of Amount (In case
Hospitals) of clinic)
Rural 2.00 0.50
Semi Urban/ Urban 15.00 1.00
Metro 25.00 2.50
(₹ in crore)
Note:-
1. For individuals (including proprietorship firms) having experience
less than 2 years including fresher, loan amount shall be 50% of
the normal loan limit or ` 2.00 Crore, whichever is lower.
2. In case of borrowers requiring only working capital limit, 20% of
the ceiling limit of respective centre as above.
Type of facility I. Term loan–Finance for Land & Building shall have ceiling limit of max
65% of centre wise and rest 35% can be financed for other eligible
purposes under the scheme.
II. Working Capital limits up to 10% of the annual sale or gross income,
subject to 10% of the ceiling limit of centre in case of borrowers requiring
both Term Loan and working capital facilities in the shape of
Overdraft.the ceiling limit of centre.
Margin  25% for acquisition of premises and/or expansion/ renovation/
modernization of existing premises.
 15% for purchase of equipment/ machinery
7
 15% on cost of vehicle on road for Ambulance/ other Vehicle.
 NIL in case of WC (clean).
If the facilities are covered under CGTMSE/PMMY/Stand Up India
Rate of Interest
Guarantee Coverage then ROI shall be applicable as per respective
Guarantee Coverage. OR
Rate of Interest is linked to collateral coverage as under:

(₹ in crore)
Collateral Coverage Ratio <= ₹ 10.00 cr >₹ 10.00 Cr upto ₹
25.00Cr
50% upto 75% 1 Yr MCLR+2.00% 1 Yr MCLR+2.25%
Above 75% upto 100% 1 Yr MCLR+1.75% 1 Yr MCLR+2.00%
Above100% 1 Yr MCLR+1.25% 1 Yr MCLR+1.75%
Above 150% 1 Yr MCLR+1.00% 1 Yr MCLR+1.50%
In case of delayed payment, penalty of 2% on the overdue amount for the
overdue period shall be charged.
The security coverage comprises of-
Security
I. Primary security for the purpose of security coverage includes WDV
of immovable property and plant & machinery (which is created out of
Bank finance).
II. Collateral security consists of unencumbered immovable property
and plant & machinery (WDV as per latest ABS), liquid securities (i.e.
Bank deposit, LIC, NSC etc).
Collateral security is as under:-
Loan upto Rs. 10.00 Lacs No Collateral other than mandatory
CGTMSE/PMMY Guarantee Coverage.
Loan amount above Rs. 100% tangible collateral Security
10.00 Lacs to Rs. 1.00 Crore or CGTMSE Guarantee coverage
Loan amount above Rs. 1.00 Minimum 50% immovable /Liquid
Crore Security
Note:- Where loan is already given against immoveable property, residual
value beyond 150% of the outstanding loan can be considered as Collateral
security.
Total repayment period/Door to Door Tenor (including moratorium period)
Repayment shall not exceed 10 years and moratorium period shall not exceed 24
period months.
However, a higher moratorium period upto 36 months may be allowed in
case of construction of nursing home/ clinic/ medical centre. (Where Land
is purchased for construction of Clinics / Nursing Home / Medical Centers,
the construction should start within a period of 6 months and should be
completed within moratorium period.)
 50% concession in applicable charges.
Process fee
Concession in charges pertaining to day to day operations like ABB,
Remittance charges, Cheque Book issuance may be permitted by
respective sanctioning authority. Sanctioning authority may waive Cash
Handling Charges only up to 50% on very selective basis.
8
Special Terms If there is addition /reduction in collateral security coverage then account
should be reviewed by the sanctioning authority and applicable ROI
should be charged as per scheme.
For other details like Discretionary Power/ Authority For Approving Deviations/Relaxation In
The Scheme, please refer the circulars
9
No. 6 ORIENTAL BUSINESS LOAN SCHEME
Circular No CIRCULAR No. HO/MSME/ 19 /2017-18/ 236 date 28.06.2017
Nature of a) Overdraft limit for working capital purpose.
facility b) Term Loan/Demand Loan to acquire fixed assets for general business purposes.
c) Non fund based limit for above a) & b) purposes.
Eligibility 1.Proprietorship, Registered Partnership Firms Private / Public Ltd.
Companies/ LLPs /Societies / Trusts, engaged in business activity as
mentioned below.
2. Newly established units are also eligible.
purpose 1. Trading 2. Manufacturing and Service Enterprises(Both
Priority & Non priority) 3. Contractors /Commission agents
4. Authorized Service Centre / Service Sector viz. Hotels, Guest
Houses, Call centers etc.
5. Loan to Professionals & self employed and borrowers covered under all
priority sector schemes.
Purpose not The loan shall not be granted for:
Covered 1. Speculative prohibited by Law purpose.
2. Real estate/capital market/ investment in or for giving loans to
associate/group/sister concerns.
3. Loans to Builders/ Property dealers/ Real estate agents
Primary 1. Mortgage (Registered or Equitable) of immoveable property(s)/ factory land and
Security building and / or any other property (Land & Building) standing in the name of
individual/joint owners/ promoters, viz. Proprietor/ Partners/Directors/close
relatives, (viz. spouse, parent, brother, sister, son, daughter) who will also stand as
Guarantors.
2. Hypothecation of stock and Book Debts.
3. Hypothecation of assets created out of Banks finance.
Note: For detail please refer HO:Retail:53:2014-15: dt: 25.03.2015
Loan Limit Maximum loan upto Rs. 7500.00 Lacs (including fund and non fund based limits) as
per prevailing Discretionary Power.
MPBF 1. Assessment of Working Capital Finance:
Calculation  50% of the realizable value of the property*.
OR
 25% of the estimated annual non digital sales/income and 30% of
digital sales.
Wherever the financial statement are available.
However, if the party is not maintaining proper financial statement, such as
Commission Agents, Doctors and professionals etc. then 4 times of
annual income (subject to cash flow/repaying capacity)*.
*Whichever is less
2. Assessment of Term loan:

50% of the realizable value of the property* OR 75% of the assets to be created out of
term loan.*
*Whichever is less
ROI MCLR+2.25%. (Both TL & OD)
ROI shall be MCLR+2.25% for loan up to Rs. 5.00 crore. However, above
Rs.5.00 crore shall be linked to rating and category/conventional category
of advance.
Service 1. Working capital- Rs. 100.00 per Lac +Service Tax, if any.
10
Charges 2. Term / Demand loan - 0.50% upfront fee of Loan Amount + Service Tax, if any .
Repayment 1. Overdraft: 12 months subject to annual review.
Period 2. Term Loan/Demand Loan: Maximum upto 84 months including moratorium
period of maximum 3 months (depending on repayment capacity – Repayable on
EMI basis
Rating All accounts to be rated in IMacs Model irrespective of the amount of loan/limit,
based on category of borrower.
Further, for advances above Rs. 5.00 crore shall be linked to rating and
category/conventional category of advance
Intt Table code BL225 , BG225
Delegation As per prevailing Discretionary Power Chart including entities dealing in Gems
Power & Jeweller. The delegated powers for software/IT enterprises/ call centre/BPO
shall be in line with delegated powers for gems and jewellery.
11
No. 7 Oriental Mortgage Loan Scheme (OMLS)
– Modified Scheme
Circular No Circular No. HO:Retail:67:2015-16:981 date 08.03.2016
Nature of facility a.Term Loan , b. Overdraft limit
c. Term Loan + Overdraft Limit (COMBO OFFER)
Purpose To offer term loan facility for specified purpose against the security of
immovable property (i.e. for investment in business to raise long term
funds, personal expenses etc.)
The loan can be used to meet any legitimate need based
investments/ expenses.
Note: The loan shall not be granted for investment in real estate
business, speculative (Speculation in stock, shares, securities,
commodities, bullion etc) & prohibited purposes as restricted by Law.
Eligibility 1) All Individuals & Joint owners who are income tax assesses for at
least last two consecutive years
2. Individual engaged in agriculture & allied activities .
3. Company / firms jointly with their Directors/ Partners are eligible,
where security is either owned by the Director Partner or the company/
firms itself and the income generated by the Company/ Firm is
considered. In such cases, loans shall be sanctioned by Cluster Head.
4. NRIs are also eligible to avail credit facility under OMLS subject
to compliance of RBI norms. However, a resident Indian shall be
co-borrower in such cases .
Monthly income Net take Home

Upto ` 50000 40 %
More than ` 50000/- 30%
Margin 40% of realizable value of property .
Security Mortgage (Registered or Equitable) of self-occupied Residential / Commercial
/ Industrial Land & Building standing in the name of individual / joint owners
/ close relatives who will also stand as Co-Borrowers/Guarantors (viz. spouse,
parents, son(s), unmarried daughter & daughter-in-law)/company/firm.
Note: If property stands in the name of Proprietorship firm, Proprietor

can avail loan under OMLS in his/her individual capacity also.
Assessment of (A) 60% of the realizable value of the property (overall maximum limit).
Loan (B.i) 36 times of average gross monthly income on the basis of last salary slip
for salaried person.
However, in case of major variance in salary, MPBF can be calculated on the
basis of average salary for last 12 months.
(B.ii) 4 times of average net annual income of last 2 years in case of persons
other than salaried ones.
Whichever is less between A and B(i) or B(ii)
The Net take home income criteria shall be as under in case of
Individuals/Proprietor after all deductions including income tax and the
EMI or monthly servicing of interest and principal of the proposed Term
loan/Overdraft under the
12
Monthly income Net take Home
Upto Rs. 50000 40 %
More than Rs. 50000/- 30%
Minimum Loan Minimum loan to be considered under the scheme is of Rs. 5.00 lacs.
Amnt
ROI MCLR +2.25 % for both TL & OD

Process fee In case of Term Loan: 0.50% of Loan amount + Service Tax, if any (One Time
Fee), to be recovered up front before release of Term Loan.
In case of Overdraft facility: - 0.10% of loan amount + Service Tax, if any
(Recurring Fee). The fee shall be charged annually at the time of review of OD
limit.
Documentation NIL
Charges
Inspection Charges No inspection charges shall be levied, if facility is availed for personal
purpose. However, in case credit facility is availed for business purpose
inspection charges as per Loan policy or guided by RMD Deptt. shall be levied
.
Repayment Period/ A) For Business Entities
Term a) Term Loan: Maximum upto 120 months repayable on EMI basis
b) Overdraft limit: 120 months subject to annual review with progressively
reducing limit on monthly/quarterly instalment basis so as to liquidate the
facility within the maximum period of 10 years.
c) Term Loan + Overdraft Limit (COMBO OFFER): 60% of loan amount will be
in the shape of Term Loan repayable in 84 months & 40% in the shape of
Overdraft limit (Non-reducing) to be renewed annually.
(The Loan/Overdraft limit will be repayable upto maximum age of 75
years of Guarantor )
B) For Individuals(salaried & others)
a. Term Loan : Maximum up to 120 months repayable on EMI basis
b. Overdraft Limit: 120 months subject to annual review with progressively
reducing limit on monthly/quarterly instalment basis so as to liquidate the
facility within the maximum period of 10 years.
(The Loan/Overdraft limit will be repayable upto maximum age of 75 years of
Guarantor).
13
No. 8 REVISED SCHEME FOR LOAN TO TRADERS
- ORIENTAL UTTAM VYAPARI
Circular No HO/ CAD/72/2015-16/ 694 dated 01.12.2015
Nature of facility Cash Credit (Hypo) and/or Term Loan maximum Rs100.00 Lacs (metro and
Urban -100.00 lacs, Semi Urban and Rural Rs. 50.00 lacs)
Purpose a) For Working Capital : To meet day-to-day working requirement.
b) For Term Loan :
i. Acquiring premises/land & constructions thereon on ownership basis
required for running the business.
ii. Financing of charges to convert lease hold business premises to free hold.
iii. For repair/ renovation/ furnishing of existing business premises/showroom.
iv. To purchase furniture & fixtures for business premises.
v. To purchase new equipments/ business tools/ computers/ UPS,
Note: Loan for acquisition of land is not permitted.
Eligibility Traders/ Business concerns having Registration/ License, if applicable
under local laws (i.e. Shops & Establishments Act)/ appropriate
authorities.
 Existing units should be a profit making one.
 Applicant should have been in business for 1 year.
 New units may be allowed to avail the facility subject to compliance security
clause and other terms of scheme.
Primary Security Hypo of Stocks and book debts
Coll. Security / A) CC / T / L upto Rs 10.00 Lacs (to be covered under Pradhan Mantri
Security Mudra Yojana-PMMY):
Coverage 1. Hypothecation of assets purchased out of loan amount.
2. Collateral security exempted upto Rs 10.00 Lacs
*CGTMSE/MUDRA coverage shall be obtained in all eligible cases
1. Cash Credit/Term Loan above Rs 10.00 Lacs and upto Rs.25.00 lacs :
Collateral security with realizable value at least equivalent to 50% of total
exposure along with one personal guarantee of adequate net worth acceptable
to the Bank. (Where there is no CGTMSE Coverage) OR
Equitable mortgage of immovable property having realizable value at least
equivalent to 100% of the total exposure.
2. Cash Credit/Term Loan above Rs 25.00 Lacs:

Equitable mortgage of immovable property having realizable value at least
equivalent to 100% of the total exposure.
In case of purchase of Shop / Office premises - Its mortgage is mandatory

No additional collateral security is required, if the total loan limit is less than
the value of purchase of land and building.
Margin > 20% on stocks (working capital)
> 40% on Book Debts not older than 6 Months
> 25% on purchase of shops/ Office premises, equipments etc.
Permissible For working capital:
Bank Finance The Working capital facility shall be allowed based on 20% of realistic
projected sales turnover and the inventory level depending upon the nature of
14
business.
For Term Loan:
a) 75% of cost of assets acquired in case of Term Loan.
3) 75% of cost of premises to be acquired for business purpose.
ROI Loan Limit Rate of interest
Loan upto Rs. 10.00 Lacs MCLR+1,50%
> Rs. 10.00Lacs and up to Rs. 25 lacs MCLR + 2,00%
Loan above Rs. 25,00 MCLR+2.25%
ROI to be charged as per guidelines issued by RDPS for the cases
covered under Credit Guarantee scheme of CGTMSE
Repayment  Term Loan: 3 to 10 years inclusive of maximum moratorium period of 6

months, if required. (Depending up on cash flows of the applicant)
 Working Capital Limit shall be renewed every.
Service Charges a) 0.50% for term loan (one time)+Service tax, if any. Maximum Rs.25,000/-
b) Rs. 150/- per lac + Service tax if any in case of working capital limit.
Minimum Rs1000/- and Maximum Rs. 25,000/-
c) Cash Handling charges – 25% of applicable charges.
d) Other Service Charges – As per Schedule of Service Charge.
e) No Documentation Charges
Repayment *Term Loan; 3 to 10 years inclusive of maximum moratorium period of 6
Period/ Term months, if required. (Depending up on cash flows of the applicant)
* Working Capital Limit shall be renewed every year.
15
No. 9 Revised “Loan To Commission Agents /Arthiyas”
Scheme
Circular No HO: RD&PS: 64:2015-16:697 dated 02.12.2015
HO/MSME/12/2016-17/1015 Dated-12.01.2017.
Nature of facility Overdraft limit for working capital purpose .
Purpose  To provide working capital to the Commission Agents/ Arthiyas; irrespective
of their location enabling them to
 Make advance payment to farmers and for supply of inputs as also for
buying the output from them.
 Supply of inputs (such as fertilizers, pesticides, seeds, cattle feed, poultry
feed, agricultural implements and other inputs) to farmers and buying the
output from them.
 Carrying post harvest activities such as sorting, grading etc.
Eligibility  Commission Agents/ Arthiyas having valid license from the market
yard/Board.
 Fresh entities are also eligible as advance secured by 150% Collateral
Coverage.
 All Commission Agents/ Arthiyas irrespective of location shall be covered
under the scheme.
Period of Loan 12 months subject to annual renewal.
Rate of Interest Upto ` 25.00 lac One Year MCLR+1.00%
Above ` 25.00 lac One Year MCLR+1.50%
Documentation/ As per normal charges circulated by RMD time to time.
process fee
Inspection Charges Dispensed with.
Insurance Insurance cover for mortgaged property to be obtained under agreed
Bank clause.
Financial ratios: Acceptable financial Ratio:
Current Ratio/Adjusted Current Ratio:
Debt Equity Ratio/Adjusted DE ratio:- Upto 4:1
Leverage Ratio/Adjusted Leverage Ratio:- Upto 6:1
MPBF: 20% of annual Sales/ turnover (Estimated)
OR
8 times of the Commission earned (actual)
Commission earned / Annual Sales / turnover can be assess on the basis of VAT
return/ Balance sheet and P & L etc.
Note:-
The existing limits which were sanctioned before 02.12.2015 and cannot be
renewed at existing level due to change in MPBF calculation. In these cases
the Limits shall be renewed at existing level with gradual reduction of at
least 5% of the limit (on half yearly basis) till the period the limits reduced
to the level of MPBF calculated now as per new method.
16
Primary Security: The facility shall be secured by way of mortgage of residential / commercial
property (Other than Agricultural Land) worth at least 150% of advance sought
belonging to either the applicant or guarantor
17
Or
Pledge of NSCs, FDR, LIP (S.V.) of 125% of advance.
Applicable to fresh sanction/ Enhanced portion of the facility, if operation of
the account is satisfactory.
Note:- In case of existing facilities, where the value of residential /
commercial property having realizable value less than 150% of the facility
has been accepted, the facility may be allowed to be continued for
renewal at existing level. However, at time of renewal efforts to be made
for covering of 150% value of the Commercial/ Residential property.
Similarly in existing loan accounts, mortgage of property taken as
collateral security shall be considered as primary security at the time of
renewal.
In case of let out property: Cluster Head/ CMLCC-HCB & above has
been empowered to permit for accepting let out property as security. Classic
Branches shall not have any power for accepting let out properties.
However, Valuation of property should be done on the basis of 11
years lease /rentals or RV whichever is less.
Note: Properties let out to our bank for premises shall be considered as
self occupied.
For Takeover Norms /Deviating Authority/Discretionary Powers/Other Conditions
Please refer the Circulars.
18
No. 10 “STAND UP INDIA” SCHEME
Circular No HO:RD & PS:04:2016-17:21 dated 04 April, 2016
 To facilitate Bank loans above Rs10.00 lakh to Rs1.00 crore to at least one
Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one
women borrower per Bank Branch for setting up a greenfield enterprise.
 The enterprise may be engaged in Manufacturing/Services/Trading sector.
 In case of non-individual enterprises at least 51% of the shareholding and
controlling stake should be held by either an SC/ST or women entrepreneur.
Nature of facility Composite Loan .
Loan Amount  Above Rs10.00 lakh to Rs1.00 crore .
 75% of project cost.
The stipulation of loan being expected to cover 75% of project cost would not
apply if the borrower’s contribution along with convergence support from any
other scheme exceeds 25% of the project cost.
Primary Security Hypo of Stocks and book debts.
Credit Guarantee The scheme for Credit Guarantee for loans under Stand Up India has been notified
/ Collateral (www.ncgtc.in).
Margin 25% (may be provided in convergence with eligible Central/State schemes).
Note : Borrower shall be required to bring in minimum of 10% of project cost. .

ROI As per guidelines of the Bank in vogue applicable to MSME advances linked to rating.
However, Rate of Interest should not exceed Base Rate/MCLR + 3% + Tenor Premium.
Repayment Maximum 7 Years

Moratorium Upto 18 Months
Free Code 10 “STUPI” has been created in the CBS for this scheme.
The loan shall be granted as per Bank’s guidelines/schemes applicable for such type of advances circulated
from time to time. Other parameters, which are not mentioned in “Stand Up India” scheme such as rate of
interest, charges, fees, security etc. shall be as per guidelines/scheme in vogue. However, Rate of Interest
should not exceed Base Rate/MCLR + 3% + Tenor Premium.
The salient features of the scheme are as under:-
The scheme will be accessed in three potential ways:-

Directly at the Branch /MSME Clusters
Through SIDBI’s Stand Up India Portal
Through Lead District Manager (LDM)
The Offices of SIDBI and NABARD shall be designated Stand Up Connect Centres (SUCC). The Lead
District Manager (LDM) in each district shall be the nodal point of network of Stand Up India Connect
Centres.
Stand Up Connect Centres will help borrowers in establishing the unit.
For detailed guidelines of the scheme and for loan application, refer the main circular by clicking to
circular no on top of this page.
19
No. 11 PRADHAN MANTRI MUDRA YOJNA (PMMY)
Circular No HO/MSME/ 08 /2017-18/ 79 Dated-29.04.2017
Objective. 1. Non-farm enterprises in Manufacturing, Trading and Services whose
credit needs for income generation upto `10.00 Lakh.(Only MSEs
classified as per MSMED Act 2006).
2. Activities allied to agriculture (excluding crop loans, land improvement
such as canals, irrigation, wells) and services supporting these, which
promote livelihood or are income generating.)
Eligibility 1. Individual, Proprietorship, Partnership firms, Limited Liability Partnerships (LLPs),
Private / Public Ltd. Cos. Or any other legal forms.
2. MUDRA loan may be extended on cluster basis in addition to existing individual
cases as at present.
Nature of facility Term Loan/ Working capital (OD) or Composite Loan .
Working Capital Loan upto `20,000/- through MUDRA Debit Card.
Loan Amount Up to `10.00 Lacs.
The Loan shall be named as 'Shishu', 'Kishor' and 'Tarun' as under:-
Shishu : loans upto `50,000/-
Kishor : loans above `50,000/- and upto `5.00 lakh
Tarun : loans above ` 5.00 lakh and upto `10 lakh
Primary Security Hypothecation of assets created out of Bank’s Finance.
Credit Guarantee Guarantee Coverage under CGFMU/ CGTMSE. However, it shall be ensured that only
/ Collateral single guarantee cover is to be obtained.
Margin Amount Margin
Up to ` 50,000/- (Shishu Loans) Nil
Above ` 50,000/- to ` 2,00,000 /- 10%
Above ` 2.00 lakh to ` 5.00 lakh 15%
Above ` 5.00 lakh to ` 10.00 lakh 25%
ROI Amount Rate of interest
Upto `2.00 lakh MCLR
Above `2.00 lakh to `10.00 lakh MCLR+2.25%
Repayment As per applicable scheme
The Bank has formulated various scheme viz. Oriental Business Loan Scheme, Oriental Mortgage Loan
Scheme, Loan to Other Professionals, Financing against Autos / Taxis, Loan to Traders, Loan to Women,
Loans under MSME etc. for assisting entrepreneurs. All such loan either schematic or non schematic may
be classified under “MUDRA Loans under PMMY”.
MUDRA CARD
“Issuance of MUDRA Card Under Pradhan Mantri” MUDRA Yojna (PMMY)” for loans sanctioned upto
`1.00 lakh.
MUDRA card shall be issued to literate Individual & Proprietor only. Joint account holders are not
permitted.
20
Maximum composite loan shall not exceed `1.00 Lakh.
Overdraft Facility:-
Loan Amount:- 20% of composite loan being Working Capital component i.e. maximum
`20,000/- as OD facility and can be withdrawn by MUDRA Card.
Cheque Book Issue Facility:- Yes
Aadhaar Seeding Facility:- Yes, in case of individual/proprietorship concern (Not mandatory)
Term Loan - TL701 (TL GENERAL-EI)
Over Draft - OD505 (OD – MUDRA CARD SCHEME)
The MUDRA card shall be issued in OD505 scheme.
MUDRA Card:-
Maximum limit of MUDRA Card shall be upto `20,000/-.
MUDRA Card shall work as Debit Card and shall be based on RuPay Platform.
MUDRA Card will work on ATM’s/POS/E-Commerce.
MUDRA Card will be personalized.
The Field functionaries are advised to give wide publicity to “MUDRA Loan Under PMMY” and
issue maximum number of MUDRA Card to the eligible micro/small entrepreneurs such as Hawkers,
Small Vendors, Vegetable Seller, Rickshaw Pullers etc. engaged in non-farm activity such as
Manufacturing, Trading and Services.
Note: The MUDRA Card (RuPay Debit Card) shall be issued to the borrowers having composite
loan maximum upto Rs. 1.00 lakh and OD Rs. 20,000/- only.
21
No. 12 Oriental Budget Hotels & Restaurants
Circular No H O/MSME/15/2016-17/1118 dated 18.02.2017
Purpose  To meet credit requirements to purchase land and/ or set up a unit
for business of Hotels / Restaurants / Lodges / Guest Houses /
Motels / Dhabas / Pizza Centres (Franchises) / Mess / Canteen /
Catering Services / Service Apartments (a serviced apartment is a fully
furnished apartment available for both short-term as well as long-
term stays, providing all the hotel-like amenities, such as having room
service, a fitness centre, a laundry room, and/or a recreation room)
/ Banquets / Coffee Shop / food and beverage joints with entertainment
/ Gaming permitted by law etc. run by themselves including
takeover of credit proposals from other Banks.
 To upgrade /Renovate /Expand existing units by purchase of
Furniture and Fixtures / Machineries / Equipments / Vehicles etc.,
Eligibility Individual, Proprietorship, Partnership firms, Limited Liability Partnerships
(LLPs), Private / Public Ltd. Cos.
Units under Micro, Small and Medium Enterprises in Service Sector with
original investments in equipments not exceeding Rs. 5 Crores.
Units must have valid license to conduct such business by
Municipal/Local Administration.
Nature of Term loan and Working Capital to be provided in the shape of Overdraft.
Facility
Quantum of Upto Rs.10.00Crore.However,OD can be sanctioned up to Rs.0.50Cr.
Exposure
Repayment maximum 10 years (including Construction period/moratorium period).
Period
Primary i. Hypothecation of entire equipments, Current and noncurrent assets
Security of the Unit.
ii. Mortgage of Project Land with existing/future constructions thereon.
Collateral Minimum 25% of the loan amount by way of Mortgage of Immoveable
Security property (Other than Agricultural Land) /Liquid securities.
Note: - Residual value of the primary security mortgaged with Bank over
150% of the total loan amount can be reckoned for Collateral Coverage.
OR
CGTMSE Coverage/PMMY Coverage.
Rate of If the facilities are covered under CGTMSE/PMMY Guarantee
Interest Coverage then ROI shall be applicable as per respective Guarantee
Coverage.
Rate of Interest linked to collateral security coverage is as under:
(₹ in crore)
Collateral Coverage Ratio Applicable ROI
25% to 50% 1 Yr MCLR+2.50%

50% upto 75% 1 Yr MCLR+2.00%
Above 75% upto 100% 1 Yr MCLR+1.75%
Above100% upto 150% 1 Yr MCLR+1.25%
Above 150% 1 Yr MCLR+1.00%
22
Margin 25% for both Term loan and Working Capital.
23
No. 13 LOAN AGAINST WARE HOUSE RECEIPT
Circular No HO: RD&PS:50:2015-16:470 17.09.2015
Nature of facility Cash Credit
Demand Loan may also be considered to all.
Pry Security Pledge of warehouse receipt
Coll. Security / No collateral security in case of warehouse receipt issued by Central / State
Security warehouse and warehouse receipts issued by the Bank’s empanelled Collateral
Coverage Manager.
Margin In case of Cash Credit : 25% margin
In case of Demand Loan :
Minimum 35% for all commodities or as prescribed by collateral Manager
whichever is higher.
MPBF Calculation In case of Cash Credit:- 75% of value of WHR and 65% in case of
demand loan.
ROI 1.Priority Sector Advances
Negotiable Warehouse Receipts
MCLR , subject to net earnings should not below MCLR
Non Negotiable Warehouse
Receipts
MCLR+1.00%, subject to net earnings should not below MCLR
2.Non-priority Sector Advances
MCLR+2.00% subject to net earnings should not below MCLR+1.00%.
Service Charges For Priority Sector Advances
1.Upto Rs.5lac :NIL
2.>Rs.5lac upto Rs.10lac :Rs.300 per lac or part thereof.
3.>10lac upto Rs.1crore :Rs.150per lac subject to minimum of Rs.1750.
4.>Rs.1 crore :Rs.150per lac subject to minimum of Rs.1750 &
maximum of Rs.12.5lac.
For Non Priority Sector Advances
1.Up to Rs. 25000 : NIL
2. >Rs. 25000 up to Rs. 2lac : Rs.400.
3.>Rs. 2lac up to Rs. 10lac :Rs.300 per lac or part thereof.
4.>Rs.10 lac Up to Rs. 1Crore :Rs300 per lac subject to minimum of Rs3500
5. >Rs. 1 Crore :Rs.300 per lac subject to minimum of
Rs.35000 & maximum of Rs.25.00 lacs
Nil up to 30.04.17 for both PS & NPS advances.
Documentation 1.Upto Rs.50.00lac -NIL.
Charges 2.Over Rs.50.00lac to Rs.100.00lac - Rs.15000/-
3.Over Rs.100.00lac -Rs.20000/-
Nil up to 30.04.17 for both PS & NPS advances.
Repayment In case of Cash Credit :- 12 months
Period/ Term In case of Demand Loan :- Maximum Six months.
Scheme/Facility 1. Facility against perishable commodities shall not be considered.

wise terms & 2. Branches shall ensure genuineness of the Warehouse receipts negotiable
conditions warehouse receipts (NWR) before considering advance against it.
24
3. Advance shall be granted against original warehouse receipts negotiable
warehouse receipts (NWR) only. No advance shall be allowed against storage
receipt issued by private warehouses (other than approved Collateral Manager).
4. Specimen signature of authorized signatory of the Warehouse Keeper's shall
be obtained and kept on record.
5. A notice shall be issued to the Warehouse regarding bank's lien on the goods
stored as per the specific Warehouse receipt and after receiving confirmation
that our bank's lien has been got noted before disbursement of the loan.
Acknowledgement shall be kept on record.
6. Certificate of quality issued by the graders/ samplers/ classifiers/ warehouse
Keepers shall be obtained and kept on record.
7. Goods shall be inspected at periodic intervals to ensure upkeep of its quality.
8. Extra caution should be taken about genuineness of Warehouse
Receipts/negotiable warehouse receipts (NWR). Each Warehouse
Receipt must be verified from the warehouse authorized signatory
besides verification of goods stored by the bank official.
In case of farmers, the facility shall be routed through OGC account.
Wherever farmer is not availing OGC facility from branch, efforts shall be made
to issue OGC before consideration of the advance against Warehouse Receipt. It
shall however be ensured that the farmer deals with the bank exclusively.
10. Facility should not be utilized for any purpose other than the purpose for
which it is availed or for investment in capital markets or for speculative purposes.
11. Bank has the right to modify any of the terms & conditions pertaining to the
credit facility at any time.
12. Borrower should inform the Bank whenever any event happens which
prejudicially affect the interest of the Bank/weaken the financial position of the
firm.
13. The firm should furnish to the Bank every year financial statements at the
time of renewal of credit facility by the Bank.
15. The valuation of the commodity will be done as per the Minimum Support
Price (if announced for the commodity) or the market price or value mentioned
in the warehouse receipt, whichever is lower.
Finacle Scheme AG-44

Code AG-50 for eligible account of small & marginal farmers for intt.
Subvention.
Collateral Manager Fees shall be paid from out of “Commission Paid (Misc)”.
Fees
25
No. 14 Scheme for “Oriental Fleet Loan Scheme
Circular No HO/MSME/16/2016-17/1119 dated 18.02.2017
Purpose  To finance new fully built (Chassis+ Body Building) including
Road Tax, Registration & Insurance etc. of four or more wheelers
viz. Trucks, Trailers, Tankers, Buses, Tippers and Taxies etc.
 To meet Working Capital finance.
 To issue BGs for Contracts/Orders.
Eligible entities Individual, Proprietorship, Partnership firms, Limited Liability

Partnerships (LLPs), Private / Public Ltd. Cos.
Eligibility  Existing or new Fleet Operators (Goods or Passenger) having
good prospects/contracts in hand.
 Transport operators holding national/ state route permit and
other necessary permits/ license/ approval, with satisfactory track
records/Income Tax payers.
Nature of Facility 1. Term Loan
2. Overdraft limit for meeting day to day expenses and against
receivables (Maximum- Rs. 50.00 Lacs)
3. Issue Bank Guarantees against contracts/orders
Loan Amount Up to Rs. 5.00 Crore (Maximum)
Credit Risk Rating Internal Credit Risk Rating:Up to OBC 5

External Rating:Not Required
Repayment Period Repayment period shall be maximum 5 years for T/L
Primary Security Hypothecation of asset created out of Bank Finance and
assignment of Book Debts etc.
Collateral Security i) Guarantee Coverage under CGTMSE, wherever applicable
ii) Where no CGTMSE cover available, minimum 25% of collateral
security in the form of immovable property/liquid securities.
iii) Personal Guarantee of the promoters
Rate of Interest If the facilities are covered under CGTMSE Guarantee Coverage
then ROI shall be applicable as per respective Guarantee
Coverage.
Rate of Interest linked to collateral security coverage is
as under:
(₹ in crore)
Collateral Coverage Ratio Applicable ROI
25% upto 50% 1 Yr MCLR+2.00%
50% upto 75% 1 Yr MCLR+2.00%
Above 75% upto 100% 1 Yr MCLR+1.75%
Above100% upto 1 Yr MCLR+1.25%
Above 150% 1 Yr MCLR+1.00%
Margin 25% of the Cost on fully Built-up vehicle/ 20% of the cost on
purchase of Chassis/ 30% of the cost for Body Building
10% of the cost on Road Tax & Insurance expenses
For Working Capital Limit: - 25% minimum
26
No. 15 ORIENTAL SCHEME FOR FINANCING AUTO /
TAXIS/Small Cargo Vehicle
1 Circular NOs HO/MSME/11/2016-17/1014 date : 12.01.2017(Revised scheme)
2 Nature of facility Term Loan

3 Eligibility 1. Individual, partnership, sole proprietorship, private Ltd. / Public Ltd. companiesLLPs
2. All finance vehicles shall be driven by the person having valid driving license.
5. The borrower shall obtain valid permit to ply the vehicle as per applicable rules of
Regional Transport Officer (R.T.O)/ State transport department/appropriate local
authorities
4 Amount Upto Rs. 10.00 Lacs per vehicle subject to aggregate maximum limit of Rs. 50.00 Lacs
5 Purpose To acquire Autos , Taxis , E Rikshaws/ small commercial vehicles, Small Cargo Vehicles
etc operating on any kind of energy which are permitted by state/loacal authorities
6 Classification of Priority Sector under Small or Micro (service) Enterprises depending upon investment
advance in equipment as per the definition of given in MSME Act.2006
7 Primary Security Hypothecation of vehicle- Auto / Taxi etc. to be purchased from Bank’s Finance. (The
hypothecation clause shall be registered with RTO)
8 Collateral Security  Loans Upto Rs.10.00 Lacs - Mandatory CGTMSE/PMMY Guarantee Coverage
 Loan amount above Rs.10.00 Lacs- 100% tangible collateral Security in the shape
of Immovable/liquid security or CGTMSE Guarantee coverage
9 Margin 15% of the ‘On Road Price’ as per the Performa invoice of the Dealer (On road price
shall include Vehicle Ex-showroom Price, insurance, Registration etc.)
10 ROI Loan Limit Normal ROI Interest If Covered Interest
Table Code under CTGMSE Table Code
Upto Rs.2.00 Lacs MCLR+2.00 ML200 MCLR ML00
AboveRs.2.00 Lacs to MCLR+2.00 ML200 MCLR+1.00 ML100

Rs.25.00 Lacs
Above If CR is MCLRL+2.50 ML250 MCLR+0.50 ML050
Rs.25.00 1
Lacs to 2 MCLR+2.75 ML275 MCLR+1.00 ML100
Rs.50.00
Lacs 3 MCLR+3.00 ML300 MCLR+1.50 ML150
4 MCLR+3.25) ML325 MCLR+2.00 ML200
5 MCLR+3.50 ML350 MCLR+2.50 ML250
6 MCLR+3.75 ML375 MCLR+3.00 ML300
Rate of interest shall be floating with monthly rest subject to changes in MCLR/spread
announced by the Bank/RBI from time to time with monthly rest.
2% penal interest shall be charged over the normal rate on the overdue amount and
for the period of overdue.
11 Repayment Period Upto 60 months including moratorium period of 3 months. (Servicing of interest
during moratorium period is compulsory).
12 Processing Charge Upto Rs5.00 lacs – Nil, Above Rs5.00 lacs - 0.50% of loan amount with a minimum of
Rs.500/ + Service tax, if any.
27
No. 16 OLA Tie-up for financing Taxies
Circular No HO/MSME/ 18 /2016-17/ 1121 dated 18.02.2017
Purpose of Loan To acquire Taxis (4 wheeler) for operating them as commercial passenger
vehicles.
Eligibility 1. Individual, partnership, sole proprietorship, private Ltd. / Public Ltd.
companies/Limited Liability Partnership.
2. Individuals & Other Business entities requesting loans for more than 1
vehicle must have minimum 3 years of experience in the field.
3. All finance vehicles shall be driven by the person having valid driving
license.
4. The borrower shall obtain valid permit to ply the vehicle as per
applicable rules of Regional Transport Officer (R.T.O).
Loan limit Upto Rs. 10.00 Lacs per vehicle subject to aggregate maximum limit of Rs.
50.00 Lacs.
No. of vehicles Up to 10 (ten) vehicles per entity irrespective of it being an individual,
partnership, sole proprietorship, private Ltd./ Public Ltd. companies.
Security clause Hypothecation of vehicle- Auto / Taxi etc. to be purchased from Bank’s
Finance. (The hypothecation clause shall be registered with RTO)
Collateral Loan upto Rs. 10.00 Lacs Mandatory CGTMSE/PMMY Guarantee
Security Coverage.
Loan amount above Rs. 100% tangible collateral Security in the shape
10.00 Lacs of Immovable/liquid security or CGTMSE
Guarantee coverage
Note:
1. In case obtention of equitable mortgage, the personal Guarantee
of Owner of property shall be obtained.
2. In case finance to partnership / company, the personal Guarantee
of partners / Directors shall be obtained.
3. The CGTMSE Guarantee coverage shall be available as per the
terms, eligibility criteria and guarantee fees defined under the
scheme and circulated from time to time.
Margin 10% of the ‘On Road Price’ as per the performa invoice of the Dealer (On
road price shall include Vehicle Ex-showroom Price, insurance, Registration
etc.)
Rate of Loan Limit Rate of Interest
interest Up to Rs. 10.00 Lacs One Year MCLR+1.50%
Above Rs 10 Lacs to One Year MCLR+2.00%
Rs.50.00 Lacs
Process Fee Up to Rs. 5.00 lacs- Nil

Above Rs. 5.00 Lacs:- 0.50% of loan amount with a minimum of Rs.500/ +
Service tax, if any.
28
Repayment Upto 60 months.
29
No. 17 FINANCING TO EDUCATIONAL INSTITUTES
(Term Loan)
1 Circular No HO/RMD/88/2016-17/734 dated 18.11.2016
2 Nature of Term Loan
facility
3 Eligibility Educational institutions, Schools (including play schools), Colleges and
other education bodies running education activities set up by Firms,
Company, Trusts, Society etc. (HUF are not eligible).
5 Purpose Construction of building including expansion, modernization & renovation
activities of the educational institution for the purpose of education.
 Purchase of instruments meant for imparting education/ Training,
purchase of Instruments or infrastructural requirements viz.
furniture and fixtures, Vehicles, computers and all other
equipments required for educational institutions.
 Finance for purchase of land alone is not permissible. However,
the land proposed to be purchased forming part of project shall
be considered for finance (subject to minimum margin as
stipulated in this policy).
6 Classification Bank loans up to a limit of ₹5 Crore per borrower for building social
of adv infrastructure for activities namely schools, health care facilities, drinking
water facilities and sanitation facilities in Tier II to Tier VI centres are
classified under Priority Sector .
As per the RBI guidelines, the loans granted to educational institutions will
be eligible to be classified as priority sector advances under Micro, Small
and Medium (Service) Enterprises, provided they satisfy the provisions of
MSMED Act, 2006.
(Note: For detail refer the main circular.)
7 Primary  Hypothecation of all movable assets including furniture and
Security fixtures, vehicles, instruments, computers and all other
equipments as well as infrastructural requirements required for
the institutions, not specifically charged to any other Bank/FIs.
 All the cash flows of the institute shall be routed through Trust
and Retention account opened with the Bank.
 Equitable/ Registered mortgage of Land & Building of the Educational
Institution (wherever permissible and not restricted by affiliating/
approval authority of education institution/ local Govt.
laws/guidelines).
Where Land and building of an educational institution cannot be
mortgaged due to restriction from affiliating/ approval authority of
education institution/ local Govt. laws/guidelines, in such alternate
collateral security in the name of the institution or promoters of the
institution equivalent to a minimum of 30% (in terms of RV) of the Loan
Amount shall be obtained as collateral security.
Further, in such cases, a stamped letter/ negative lien be obtained from
the borrower stating that no charge will be created on the institutions
property (including land for which loan is being extended) and prior
permission from our Bank should be obtained before creating any kind of
charge.
30
8 Collateral  Equitable/ Registered mortgage of Land & Building (but not
Security / agricultural land) of other institute of the borrower (wherever
Security permissible and not restricted by affiliating/ approval authority
Coverage of education institution/ local Govt. laws/guidelines) and/or
belonging to promoters viz. Trustees/ Members of the
Society/Proprietor/ Partners /Directors, who shall also stand as
guarantor.
In case of partial constructed property, the realizable value of land is to
considered for collateral coverage.
Personal guarantees:
 Personal guarantees of the Promoters/ Trustees/ Members of the
Society/ Proprietor/ Partners /Directors (excluding professional
or independent directors) of the Institution.
 Minimum overall security (primary and collateral) coverage
should not be less than 200%.(in terms of RV)
Note:
 While sanctioning credit facilities to the Educational Institutions,
comfort should not be derived from the securities being offered. The
viability of the project and cash flows of the Educational Institutions
are to be relied upon while considering any credit facilities to the
Educational Institutions.
9 Margin 25% of the Cost of Project (excluding cost of land).
 Wherever land is also financed as part of cost of project in such
cases minimum prescribed margin against cost of the land shall
be 50% of the cost of the land.
 Further, the quantum of finance against cost of the land shall be
restricted to 50% of the sanctioned loan amount.
10 ROI The Rate of Interest shall be as per the classification of the borrower i.e.,
MSME (classified under Priority / Non-Priority Sector) as per RBI guidelines
and shall be linked to the Internal Credit Risk Rating of the borrower.
 The Rate of Interest for the borrower that does not fall under the
ambit of MSME shall be as per Internal Credit Risk Rating and
External Credit Risk of the borrower (Other Conventional Loans
Not Specified Elsewhere).
The Rate of Interest shall be subject to reset at the time of annual review.
12 Service As per schedule of service charges.
Charge
14 Disc Powers (Rs. In Crores)
MCB Full
CAC 250.00
HLCC-ED 75.00
HLCC-GM 35.00
CMLCC-GM 35.00
CMLCC-DGM 20.00
CMLCC-DGM 10.00
Cluster Head (MSME) AGM 10.00
31
No. 18 FINANCING EDUCATIONAL INSTITUTIONS-OD
1 Circular No HO/RMD/88/2016-17/ 734 dated 18.11.2016
2 Nature of facility Overdraft
3 Eligibility  Trust/ Societies/ Proprietorship/ Partnership firms/ Private / Public Ltd.
Cos., engaged in running an educational institution satisfactorily (HUF not
eligible).
 at least for 2 years.
However, in case where our Bank has sanctioned term loan for
construction of educational institution, such borrower shall be eligible to
avail OD under the scheme after successful DCCO.
 New as well as Existing customers of the Bank shall be eligible for this facility
subject to satisfactory operation of the institute for past two years.
 All the transactions of the institute shall be routed through Trust and
Retention account opened with the Bank.
 The borrower shall not be in the list of defaulters/ wilful defaulters circulated
by RBI/CIBIL, such reports to be obtained/ generated and before
processing the proposal branch to ensure that the same is satisfactory as
per Bank guidelines.
4 Amount Overdraft facility not to exceed 50% of the realizable value of the property
taken as collateral security.
 In case OD limit to Educational institutions already availing Term loan
from our Bank, the primary security (land & building only) and collateral
security, already mortgaged with our Bank against Term Loan can be
treated as collateral security for OD limit.
In such cases, the residual realizable value of the immovable
property (primary and collateral) after netting of 100% term loan
exposure should be reckoned for computing collateral coverage
for OD limit.
7 Primary Security  All the cash flows shall be routed through Trust and Retention account
opened with the Bank.
 Hypothecation of all movable assets including furniture and fixtures, vehicles,
instruments, computers and all other equipments as well as infrastructural
requirements required for the institutions, not specifically charged to any
other Bank/FIs.
 Overdraft facility not to exceed 50% of the realizable value of the
property taken as collateral security.
 In case OD limit to Educational institutions already availing Term loan
from our Bank, the primary security (land & building only) and collateral
security, already mortgaged with our Bank against Term Loan can be
treated as collateral security for OD limit.
In such cases, the residual realizable value of the immovable property
(primary and collateral) after netting of 100% term loan exposure should be
reckoned for computing collateral coverage for OD limit.
8 Collateral Equitable/ Registered mortgage of Land & Building (but not agricultural land)
Security / of the institute (wherever permissible and not restricted by affiliating/
Security approval authority of education institution/ local Govt. laws/guidelines)
Coverage and/or belonging to promoters viz. Trustees/ Members of the
Society/Proprietor/Partners /Directors, who shall also stand as guarantor.
32
In case of partial constructed property, the realizable value of land is to be
considered for collateral coverage.
Asset Coverage Ratio of at least 2.0 times to be maintained including Term
loan outstanding, if any.
Note:
 While sanctioning credit facilities to the Educational Institutions, comfort
should not be derived from the securities being offered. The viability of the
project and cash flows of the Educational Institutions are to be relied upon
while considering any credit facilities to the Educational Institutions.
 No benchmark prescribed for Current Ratio as liquidity of Educational
Institution is analyzed in the light of projected cash flows and Current Ratio
is not of much significance.
Note:
 Before sanction of any loan, verification of property about its clear,
marketable, enforceable title must be undertaken by the Branch Head/
Cluster Head/ Credit-in-charge and kept on record. Extant guidelines
about valuation of property, title clearance and inspection by the branch
shall be strictly adhered to.
10 ROI The Rate of Interest shall be as per the classification of the borrower i.e.,
MSME (classified under Priority / Non-Priority Sector) as per RBI guidelines
and shall be linked to the Internal Credit Risk Rating of the borrower.
 The Rate of Interest for the borrower that does not fall under the ambit of
MSME shall be as per Internal and External Credit Risk Rating of the
borrower (Other Conventional Loans Not Specified Elsewhere).
11 Repayment Upto one year and interest to be serviced as and when due.
Period Review/Renewal :
Annual basis with thorough due diligence of the Educational Institution and its
promoters as per Bank’s guidelines on an ongoing basis.
12 Service Charge As per schedule of service charges.
13 Doc Charges As per Bank’s Advances Manual.
14 Disc Powers HLCC-ED 25
HLCC-GM 10
CMLCC-GM 5
CMLCC-DGM 2
CMLCC-AGM 2
Cluster (MSME) AGM 2
Branch Incumbents NIL
The cases above `25 Crore shall be considered by CAC/MCB within their
respective Delegated Powers.
Delegated Powers in case of the institute whose final approval is pending

from the concerned authority
The overdraft facilities to the institute whose final approval is pending (after
receipt of Letter of Intent) from the concerned authority like AICTE, UGC, MCI,
DCI, CBSE, ICSE etc (as applicable) shall be restricted to HLCC-ED/CAC/ MCB
33
within their respective Delegated Powers.
 While considering the credit facilities to the institute whose final approval is
pending (after receipt of Letter of Intent) from the concerned authority like
AICTE, UGC, MCI, DCI, CBSE, ICSE etc (as applicable), the respective
sanctioning authorities shall ensure that minimum overall security (Primary
and Collateral) coverage should not be less than 200% subject to the
condition that collateral security is not less than 100%.
 In case where no such approval/ affiliation is required from any
competent authority (as per applicable governing rules/ laws to such
category of institution, in specific states) for running Educational
institutions (such as Play school, Pre-school), the respective sanctioning
authority may consider sanctioning of such proposal within their normal
vested delegated amount under Sl.No.14.
 However in such cases, the respective sanctioning authorities shall
ensure that minimum overall security (Primary and Collateral) coverage
should not be less than 200% subject to the condition that collateral
security is not less than 100%.
34
No. 19 Financing to Agro-Processing / Food Processing /
Agro-Based Industries
Circular No HO: AB&FI:73:2016-17:673 dated 08.11.2016
Nature of Term Loan / Working capital limits ,( Fund based/ Non fund based)
facility
Eligibility Loans for food and agro processing will be classified under Agriculture up to an
aggregate sanctioned limit of Rs.100 crore per borrower from the banking
system. (Advances to Rice Shelling & Cotton Ginning Sectors are not covered
under the Scheme.
Primary Assets created out of the loan.
Security
Coll. Security / Mortgage (Registered or Equitable) of factory land and building and / or any
Security other property (Land & Building) belonging to promoters or in the name of
Coverage Guarantors, viz. Proprietor/ Partners/Directors/or in the name of the
firm/company or Guarantor.
# Personal guarantee of directors and owners of property offered as collateral
security.
Margin Term Loan : 20% , Working Capital: 25%
MPBF Limits up to Rs.5.00 Crores shall be computed on the basis of 20% of their
Calculation realistic projected turnover subject to the condition that a minimum margin of
5% of turnover shall be brought in by the promoters/borrowers as their own
contribution. However, wherever the nature of business activity so warrants,
the branches may apply traditional method of lending (based on holding levels
of Inventory, receivables and Creditors) and sanction need-based limits.
# The MPBF system (traditional method) shall continue to be followed for all
borrowers with working capital limit above Rs.5.00 Crores.
Term Loan: 80% of Project Cost.
Delegation As per delegated powers/ Discretionary powers
Power
Process Fee 75% of normal charges as per latest service Charges Chart of the Bank,
However, No process fees shall be charged for credit limits upto Rs.5.00 lacs to
MSE borrower.
Repayment As per the requirement of the borrower / Guidelines of the Bank.
Period/ Term
Finacle TL701 , CC401
Scheme Code
ROI As detailed below in the table.
Other Condition The Scheme covers unit engaged in Manufacturing/ Processing / Preservation
activities. Trading / warehousing activity is not covered under the scheme.
35
No.20 SCHEME FOR FINANCING TO COLD
STORAGE UNITS
Circular No HO: RD&PS: 65:2015-16: 700 Dated: 02.12.2015
Nature of facility Term Loan
Eligibility Individuals, group of farmers, Dealers/ Traders, Partnership/
Proprietary Firms, Private & Public Limited Companies, Corporations.
Purpose 1.For construction of cold storage units. (with multiple temperature
zones and Controlled atmosphere)
2. For technology induction & modernization of cold chain
Primary Security Charge on assets created out of bank finance. The construction of
storage facilities will necessarily involve “immoveable – assets
created out of bank finance‟.
These assets will have to be mortgaged to the Bank and all
prerequisites e.g. NEC & Valuation of the properties and creation
of valid mortgage thereon need to be carried out.
A signboard displaying “OBC Assisted Project” will be exhibited at the
unit.
Coll. Security / 1. Personal guarantee of partners/promoters /directors
Security Coverage 2. Any other tangible collateral security, if available
3. Collateral security to be explored in all cases.
Margin 25% for construction of building, plant & machineries and other
equipments.
50% for land.
Loan amount No ceiling
ROI Internal Rating Rate of Interest
OBC 1,2,3 MCLR+2.00%
OBC 4 & Below - MCLR +3.00%
Service Charges As per guidelines issued by RMD time to time .
Repayment Not to exceed 7 years including maximum moratorium period of 18
Period/ Term months.
Repayment period to be fixed depending upon the cash flow for each
and every project with Quarterly/ Half Yearly/ Yearly with repayment
period up to Seven years is allowed including moratorium period of
18 months.
Rating Internal credit rating shall be done invariably in all cases. External
credit rating be got done in all eligible cases. Penal interest shall be
levied @ 1% over & above the applicable rate of interest in case of
default in submission of external rating as per Bank’s guidelines
36
No.21 UPDATED SCHEME FOR FINANCING OF
RICE SHELLING UNITS
Circular No Circular No. HO: AB&FI:74 :2016-17:674 Dated 08.11.2016
Nature of Cash Credit , Term Loan, NFB(LC & BG), Packing Credit
facility
Primary Hypothecation of stock, work in progress. Finished goods, Bi products & Book
Security debts and all other Current asset of the Company.
Hypothecation of plant and machinery created out of Banks Finance.
Security Mortgage of immoveable property.
Wherever collateral security is not available, the eligible units should be
invariably covered under CGTMSE.
Margin Branches shall apply a uniform margin of 25% on stocks and book debts
within their powers
MPBF The present system of calculating MPBF on Turnover basis for limits
Calculation upto Rs.5.00 crores & Traditional Method in respect of limits above Rs.
5.00 crores may be continued.
However, in view of the seasonal nature of activity, the Branches are
permitted to apply traditional method taking into account holding period
in respect of limits below Rs. 5.00 crores
ROI Collateral Coverage Rate of Interest
100% or Above MCLR+0.50%
Less than 100%-upto75% MCLR+0.50%
Less than 75% -upto 50% MCLR+1.00%
Collateral Below 30%- The ROI shall be charged as applicable to
MSME loan based on internal credit rating as circulated by RMD time
to time.
Repayment The season for the Rice-Shelling Units varies from place to place depending
Period upon the arrival of paddy of different types/varieties.
Keeping in view the above, we have to provide flexibility in the timing of granting
credit facilities and its liquidation. Accordingly, the outstanding in working
capital limits sanctioned to Rice-Shelling Units are to be liquidated to the extent
of 50% at the end of the 9th month from the date the facility has been allowed
in the new season. The policy in regard to the period of sanction shall remain
unchanged, however, between the 9th month and the 11th month from
the date the facility has been allowed, the drawings power (DP) shall be
permitted only against prime security of finished goods, by-products and
bardana (packing material).
The quantity of bardana and by-products taken for calculation of drawing power
should be of reasonable level. The facility shall be liquidated to the extent of
100% at the end of 11th month from the date the facility has been allowed.
Rating The sanctioning authority shall comply with the guidelines relating to the
compilation of internal credit rating in each and every borrowal accounts.
However, its impact shall be applicable in those accounts, where collateral
coverage is below 30%, in deciding rate of interest and in such cases rate of
37
interest shall be applicable as per MSME guidelines as circulated by RMD.
Further, external rating in all eligible cases be got done as per bank’s policy. In
case of default penal interest shall be levied @ 1% over and above normal rate
of interest for non compliance of guidelines of external rating as per Bank’s
policy .
38
No.22 UPDATED SCHEME FOR FINANCING OF
COTTON GINNING UNITS
Circular No Circular No. HO: AB&FI:75:2016-17:675 dated 08.11.2016
Nature of facility Cash Credit (Hypo) and Term Loan
Pry Security Hypo of Stocks and book debts
Coll. Security / Mortgage (Registered or Equitable) of factory land and building and / or
Security any other property (Land & Building) belonging to promoters or in the
Coverage name of Guarantors, viz. Proprietor/ Partners/Directors/or in the name
of the firm/company or Guarantor.
Margin Branches shall apply a uniform margin of 25% on stocks and book debts
within their powers as prescribed in General Loan Policy .
MPBF The assessment of limits will be done both as per traditional method
Calculation and on turnover basis. The higher of the two limits may be allowed as
bank finance on merits of the case. However, the units which are also
engaged in the trading activity of cotton ginning besides manufacturing
may be allowed adding of trading sales subject to the quantum of
projected trading sales turnover should not exceed 40% of the total
projected sales turnover achievable on the basis of which working capital
assessment should be calculated.
During off season, Regional Offices/Branches may consider sub-limit to cotton

ginning units which are having oil expeller machine against the stock of
mustard/cotton seed/oil/cake depending upon the installed capacity for oil
extraction for periods as per requirement of the borrower after proper
assessment.
ROI Collateral Coverage Rate of Interest
100% or Above MCLR+0.50%
Less than 75% -upto 50% MCLR+1.25%
Below 30%, Rating applicable to MSME based on Internal Rating.
Service Charges As per schedule of Chrges.
However, No process fees shall be charged for credit limits upto `5.00
lacs to MSE borrower.
Repayment Working Capital Limit :12 Month , Term Loan : 7 years
Period
Rating IMaCs Rating In all account irrespective of amount.
Further, external rating in all eligible cases be got done as per bank’s
policy. In case of default penal interest shall be levied @1% over and
above normal rate of interest for non compliance of guidelines of external
rating as per Bank’s policy.
Inventory Norms Inventory norms, as prescribed in the latest loan policy and as per acceptable
industry level may be followed.
 The yield of cotton fiber and cotton seed should be taken as 34%
(max.) & 64% respectively. (2% be considered as normal loss).
 The period of credit available on purchases can be assumed
depending upon the local market practices/trend.
39
Other Conditions In case of units taken on lease ROs may be permitted to sanction term loans
and working capital limits provided Banks exposure is 100% secured by tangible
collateral
40
No.23 Scheme for Financing of Potato Seed
Circular No CIRCULAR NO. HO:RD & PS:33:2013-14:505 date 13.08.2013
Nature of owers
Term Loan – For the farm machinery and for cold storage units, the
facility financed shall be provided by way of term loan.
Working Capital – For meeting seed cultivation requirement the facility shall
be allowed by way of Cash Credit. In case of small growers the facility may
also be allowed under Oriental Green Card Scheme as per guidelines
issued on the subject product.
Demand Loan – For credit extended to outsourced farmers for seed multiplication
Eligibility 1.Seed growers, who are not defaulters of any Financial institutions/Banks.
2. The grower should have minimum experience of 3 years in potato seed
growing.
3. The minimum experience of 3 years in potato seed growing may be
exempted in case of agriculture graduates.
4. The growers owning land or land taken on lease verbal (as approved by the
Board vide Resolution No. CR-9 dated 07.07.2004) or written, shall be
accepted for finance. The written agreement (Pattanama) directly between the
seed grower and the land owner, without registration with the revenue
authority shall be accepted. It is pertinent to mention that most of the seed
production is done on the leased land. Normally, the minimum size of seed
farms managed by single grower is 100 Acre. Many big growers are managing
more than 1000 Acres.
purpose The loan for cultivation of seed potato shall be extended to the existing seed growers
to promote expansion of their activity
Primary Up to ` 1.00 lac : Only Primary Security i.e. Hypothecation of Crops/Assets created by Bank
Security Finance .
Coll. Security /
Security Above ` 1.00 lac i) Hypothecation Of Crops/Assets created by Bank Finance
Coverage and up to ` 2.00 (ii) Mortgage of Land/Property minimum equal to the amount o
lac loan. OR 3rd party guarantee of adequate net worth acceptable t o
the Bank
Above ` 2.00 lac (i) Hypothecation of Crops/Assets created by Bank Finance
(ii) Mortgage of Land/Property minimum equal to the amount o
loan
Margin Up to Rs 1,00,000/- Nil , Above Rs 1,00,000/- 15%*
Loan amount The loan amount will be decided based on cost of the project. There may be three
components. One, for cultivation of seed. Two, for purchase of farm machinery. Third,
for setting up of cold storages.
Delegation As per the powers applicable to agriculture advances
Power
Process Fee Up to `25000.00 NIL
Above `25000.00 up to `2.00 lacs `400.00
Above `2.00 lacs up to `10.00 lacs `300.00 per Lac or part thereof
Above `10.00 lacs `100.00 per Lac subject to minimum of
`3000.00 & maximum of `25 lacs
Repayment T/L : The term loan portion for farm machinery shall be repayable over 5 to 7
Period/ Term years, after a moratorium of up to 18 months. For cold storage term loan, a
41
repayment period of 9 to 11 years may be prescribed after a moratorium of
up to 24 months.
Working Capital :The operation in Cash Credit/OGC would continue
normally as running account. The production and sales cycle in case of potato
seed is 12 to 18 months. The seed multiplication starts in October and it is
harvested during the following March. The seed is required to be stored until
the next sowing season. Thereafter, 6 months period is needed for realization
of dues. Thus, in all there is a cycle of about 18 months. The CC account
circulation will take 18 months instead of usual 12 months. Accordingly, the
term of sanction of Cash Credit limit will be upto 18 months. D/L :In case of
Demand Loan the repayment period shall be maximum 12 months or
commencement of cash generation whichever is earlier.
Finacle TL701 , CC401
Scheme Code
ROI MCLR +0.50%
MPBF Calculation: Cost of Cultivation & Economics of Potato Seed Cultivation
A. Cultivation Cost per Acre Cost (Rs.)
(i) Land lease rent
(ii) Agronomic operations (i.e. Field Preparation, Planting, Earthing up,
Hoeing, Spraying, Hand-cutting, Harvesting, Grading, Seed treatment
and storage
(iii) Seed cost = Seed required for 1 acre (quintal) x cost of seed (price per
quintal)
(iv) Cost of Fertilizers
Nitrogen 175 kg.
Phosphorus 100 kg.
Potash 120 kg.
(v) Expenditure on Pest Management/Diseases Control measures
(vi) Misc. i.e. Seed Certification, Field Inspection, ransportation etc.
(vii) Total Cost Per Acre Sum A(i) to A(vi)
Above
(viii)Cold storage charges = production in 1 acre (quintal) x Storage Rate
per quintal
(ix) Total cost per acre Sum of A(vii) &
A(viii)
B. Production Average yield
(Quintal)
Yield of crop differs between the maturity class
(i) For Medium maturing vars - 80/100 Qtls. Per acre
(ii) For Medium maturing vars - 100/120 Qtls. Per acre
Average yield = 80 quintal per acre
C. Value of Production Value (Rs.)

(i) 90% produce sold as seed (Seed Produced in 1 acre (quintal) x value of
seed (Rs. per quintal)
42
(ii) 10% produce sold as table potato (Seed Produced in 1 acre (quintal) x
value of seed (Rs. per quintal)
(iii) Total Sum of C(i) & C(ii)
D. Net surplus (per acre) A(ix)-C(iii)
43
No.24 Scheme for Financing Seed
Circular No HO:RD & PS:31:2013-14:459 date :13.08.2013
Nature of Producers/Processors
1.Term loan for financing items of investment.
facility 2. Cash credit for working capital limit
3. Demand Loan for credit extended to outsourced farmers for seed multiplication.
4. Finance may be provided on the basis of crop loans when an added mark up
of 25% to 35% over and above the existing scale of finance prescribed for the
area. For this purpose, OGSs and/or OKGCs may be issued. The additional
finance may be permitted keeping in view the higher cost of cultivation mainly due
to higher labour for cultivation for the seed purpose.
Eligibility Seed producers/processors engaged in the activity of seed production for the
last (at least) 3 years. However, in case an Agriculture graduate wishes to set a
seed production plant/unit, the condition of past experience may be dispensed
with
purpose To establish seed processing unit.
Primary Up to ` 1.00 lac : Only Primary Security i.e. Hypothecation of Crops/Assets created by
Security Bank Finance .
Coll. Above ` 1.00 i) Hypothecation Of Crops/Assets created by Bank Finance
Security / lac and up to ` (ii) Mortgage of Land/Property minimum equal to the
Security 2.00 lac amount of loan. OR
Coverage 3rd party guarantee of adequate net worth acceptable to
the Bank
Above ` 2.00 (i) Hypothecation of Crops/Assets created by Bank Finance
lac (ii) Mortgage of Land/Property minimum equal to the
amount of loan
This stipulation shall not apply to “Oriental Green Card” & “Oriental Kissan
Gold Card”.
Margin 15%, in case of Term Loan ,25%, in case of Working Capital (CC/DL)
Delegation As per Discretionary Power Chart - applicable to Agriculture Advances
Power
Process Up to `25000.00 NIL
Fee Above `25000.00 up to `2.00 lacs `400.00
Above `2.00 lacs up to `10.00 lacs `300.00 per Lac or part thereof
Above `10.00 lacs `100.00 per Lac subject to minimum of
`3000.00 & maximum of `25 lacs
Repayment Term Loan The term loans for the seed processing plant/farm
Period/ machinery/equipment shall be over a period of 5 to 9 years based on projected
Term profitability and realistic assumptions. The instalment will be on half-yearly
interval after an initial moratorium of 6 to 12 months depending upon the case.
Cash Credit The tenure of CC would be one year. CC limit would be renewed
every year.
Demand Loan The repayment of the advances under the scheme shall be
maximum upto 12 months or commencement of cash generation whichever is
earlier.
ROI BR+0.50% per annum
The rate of interest shall be effective both for existing as well as fresh accounts from
the date of circular.
44
No.25 SCHEME FOR FINANCING TO GREEN
HOUSE / POLY HOUSE
Circular No Circular No. RD & PS/ 43 /2015-16/430 Date: 29.08.2015
Nature of Term Loan: Construction of green house / poly house, purchase of equipments,
facility machineries etc. (Scheme Code : TL751 / TL752)
Working capital: To meet out daily expenses necessary to run the farm such
as purchase of inputs, labours, post harvest operations etc. (Scheme Code :
OD504 )
Eligibility Loans to individual farmers, including SHGs or JLGs, corporate farmers, farmers’
producer organisations, partnership firms and cooperatives of farmers directly
engaged in Agriculture and allied Activities.
The Green House / Poly house should be constructed on own land.
Primary Hypothecation of green house / poly house, purchase of equipments, machineries etc.
Security
Coll. Upto `1,00,000/-
Security / Hypothecation of crop/ assets created out of Bank loan.
Security (ii) Above `1,00,000/- to ` 2,00,000/-
Coverage (a) Hypothecation of crop / assets created out of Bank loan.
(b) Mortgage of Land / Property* minimum equal to the amount of loan.
(or)
3rd party guarantee of adequate net worth acceptable to the Bank. (or)
Secured up to 100% of loan by liquid security like FDR, NSC, etc.
(iii) Above ` 2,00,000/-
(a) Hypothecation of crop / assets created out of Bank loan.
(b) Mortgage of Land / Property* minimum equal to the amount of loan.
(or)
Secured up to 100% of loan by liquid security like FDR, NSC, etc.
* Land / Property may be Agriculture / Residential / Commercial which are
eligible for creation of bank charge.
The valuation of Agriculture land will be done as per current DLC (District level
Committee) rate.
Note: The Bank’s name must be displayed Bank as ‘hypothecatee’ or financier. The
land on which Polyhouse / Green House is constructed must be mortgaged.
Margin Up to `1,00,000/- Nil Over `1,00,000/- 15%
ROI Up to 25.00 lacs - MCLR + 1.00%
Above 25.00 lacs to 2.00 crore - MCLR + 2.00%
Loan above $ 2.00 crore (NPS) - MCLR + 2.50%
Service As per Bank Norms
Charges
Repayment 1. Gestation period may vary from 6 – 12 months.
Period 2. Repayment period (excluding gestation period) may vary from
60-84 months.
Terms & Frequency of repayment of loans should be fixed Half yearly / Yearly depending upon
Conditions nature of crop / income generation.
45
No.26 Revised GCC Scheme (General Credit Card
Scheme)
Circular no HO:RD &PS:07:2014-15:75 date 30.04.2014
Objectives To increase flow of credit to individuals for entrepreneurial activities
in the non-farm sector provided through General Credit Card.
Eligibility All non-farm entrepreneurial credit extended to individuals, which is

eligible for classification under the priority sector guidelines.
Coverage The Scheme shall cover the entire country.
Nature of The credit facility extended under the Scheme would include both
financial Working capital and Term Loan requirements of entrepreneurs.
accommodation The GCC may be issued as a Smart Card/ Debit Card (Biometric/
Smart Card) compatible for use in the ATMs/ Hand held swipe
machine. Where ever accounts are not digitized GCC may be issued
as a card/ passbook/ credit card cum passbook incorporating the
name, address, photograph of holder, particulars of borrowing limit,
validity period etc.
Quantum of There is no ceiling on the loan amount as long as the loan is for the
limit purpose of non-farm entrepreneurial activity and is otherwise eligible
for classification as Priority sector.
The limits should be fixed on the basis of risk assessment on a case

to case basis.
Security Security norms will be applicable as per Reserve Bank guidelines on

collateral free lending for micro and small units issued from time to
time.
ROI The interest rate shall be as applicable on Micro and Small

Enterprises.
46
No.27 ORIENTAL SME DEVELOPMENT SCHEME
To support our SME customers to get immediate finance
for their urgent needs
Circular No HO/CAD/ 26 /2011-12/139 Dated: May 26, 2011
Eligibility  Proprietorship, Partnership firms, Private / Public Ltd. Cos., falling
within the definition of SME as per MSMED Act.
 Business unit should have been established in their line of business
minimum for 3 years and profit making concern.
 Entry level rating should be minimum IMACS 5 .
 CIBIL report to be obtained /generated and branch to ensure that
the same is satisfactory as per bank guidelines.
Purpose To provide hassle free credit to SME’s for purchase of
machinery/equipments, to meet the cost of preliminary expenses related to
business activity of the borrower, to meet cost of setting up R& D facility,
marketing and advertisement expenses.
Nature of Term Loan to be repaid in 60 months exclusive of moratorium. Interest to
Facility be repaid as and when due.
Moratorium Maximum 12 months as per the requirement of the borrower.
Size of Loan Minimum Rs 10.00 Lacs , Maximum Rs 250.00 lacs
Permissible In shape of Term Loan: 50% of unencumbered value of property under
Bank Finance offer or 75% of actual requirement whichever is less.
Security  Primary – Assets created out of the loan. (In case the facility is
. clean, then loan may be sanctioned under the powers of Regional
Head). However, if the facility is clean, the maximum loan shall ne
capped at Rs. 100.00 lac.
 Collateral-Mortgage (Registered or Equitable) of factory land and
building and / or any other property (Land & Building but not
agriculture land/plot of land/ partially constructed property) belonging
to promoters or in the name of Guarantors, viz. Proprietor/
Partners/Directors/or in the name of the firm/company or Guarantor.
 Personal guarantee of directors and owners of property offered as
collateral security.
Note: Before sanction of any loan verification of property about its clear,
marketable, enforceable title must be undertaken by the Branch Head/
Credit In-charge and kept on record. Extant guidelines about valuations of
Property, title clearance and Inspection by branch to be strictly adhered to.
Upfront fee 0.50 % of the loan amount in case of term loan.
Rate of Interest MCLR+2.00% for limits up to Rs 25.00 lacs and as per rating for SME
accounts above Rs 25.00 lacs.
47
No.28 ORIENTAL SME TRANSPORT SCHEME
Meant for existing SME units who need vehicle for delivering
products/services to their clients. Surplus from the existing
business to be available for repayment of loan.
Eligibility  All existing Proprietorship, Partnership firms, Private /
Public Ltd. Cos., falling within the definition of SME as per
MSMED Act.
 Business unit should have been established in their line of
business for minimum for 1 year and profit making
concern.
 Entry level rating should be minimum Imacs 5
 CIBIL report to be obtained /generated and branch to
ensure that the same is satisfactory as per bank
guidelines.
Purpose To purchase transport vehicles for delivery of products/Services;

to Educational institutions and Medical units/hospitals for
providing transportation to students/faculty/staff/medical vans
are also eligible. Only new vehicles are to be financed.
Nature of Term Loan to be repaid in 60 EMI’s exclusive of moratorium.

Facility
Moratorium Maximum 3 months as per the requirement of the borrower.
Interest to be serviced during moratorium.
Size of Loan Maximum limit per borrower Rs 100.00 lac
Permissible Chassis +Body Building costs + registration + insurance + road

Bank Finance tax+ AMC etc.
Margin 25% of the cost of vehicle on road
Security
 Hyp of vehicle purchased out of the proceeds. Bank’s
name to be entered into registration certificate.
 Coverage is to be taken from CGTMSE or otherwise
tangible collateral to the extent of 50% of the loan amount
to be taken above loan of Rs 5.00 lacs.
 Personal guarantee of directors and owners of tangible
securities, wherever applicable to be obtained.
Upfront fee 0.50% of the loan amount.

Rate of Interest MCLR +2.00% for limits up to Rs 25.00 lacs and as per rating for
SME accounts above Rs 25.00 lacs.
48
No.29 ORIENTAL SME CONTRACTOR SCHEME .
Eligibility  Proprietorship, Partnership firms, Private / Public Ltd.
Cos., falling within the definition of SME as per MSMED Act
in the work as civil contractor/Mining
Contractor/Engineering contractor/Transport
contractor/Cargo Handling Agency
business for minimum for 3 year and profit making
concern.
 CIBIL report to be obtained /generated and branch to
ensure that the same is satisfactory as per bank
guidelines
Purpose For meeting working capital needs.
Nature of Fund based/ Non fund based working capital limits .

Facility
Size of Loan Maximum limit per borrower Rs 250 lac. .
Permissible 30% of last two years average turnover by way of working capital
Bank Finance facilities of which cash credit facility shall not be more than one
third. The balance by way of non-fund facilities.
Margin 20% for both fund based and non fund based.
Security
 First charge over all the assets of the borrower created
out of the loan.
 Suitable tangible collateral to be taken to maintain asset
coverage of 1.50.
 Personal guarantee of directors and owners of collateral
securities wherever applicable.
Process fee Processing fee @ Rs. 100 per lac to be charged where ever
applicable.
Rate of Interest BR+2.00% for limits up to Rs 25.00 lacs and as per rating for
SME.
49
No.30 ORIENTAL EQUIPMENT LOAN
SCHEME
Eligibility  Existing Proprietorship, Partnership firms, Private / Public Ltd.
Cos.
business for minimum for 3 year and profit making concern.
 CIBIL report to be obtained /generated and branch to ensure
that the same is satisfactory as per bank guidelines.
Purpose  Financing Cost of acquisition of new equipments
 Cost of alterations to existing machinery
 Service and adopting measures for enhancement of
energy efficiency/conservation of energy
Nature of Facility Term Loan
Size of Loan Up to 80% of the total Equipment cost, subject to maximum of
Rs 500 lac.
Margin 20%
Security  First charge over assets created out of the loan.
 Account to be covered under CGTSME Scheme wherever
applicable. In case advance is not covered under the scheme
suitable collateral security to be obtained.
Personal Guarantees of the Directors & owners of the securities
wherever applicable
Process fee 0.50% of the loan amount
Rate of Interest BR+2.00% for limits up to Rs 25.00 lacs and as per rating for
SME accounts above Rs 25.00 lacs.
Repayment Period Repayment period of the loan to be maximum of five years
including moratorium
Other Condition Average DSCR should not be less than 1.25
Audited balance sheet of the borrower to be obtained and ensured
that sufficient margin is available.
CGTMSE coverage to be obtained wherever applicable
50
No.31 SCHEME FOR BEAUTY PARLOURS / BOUTIQUES
/ SALOONS / TAILORING BY WOMEN
Circular No Circular No. HO: Mktg. & Retail:16: 2011-12:247 dt: 08.07.2011
Nature of facility Term loan :For the purchase of tools/equipment/furniture & fixture, shop
etc
Working capital : For running day to day expenses of business .
Purpose To develop entrepreneur-ship among women and also to ensure the easy,
timely and convenient access to women to institutional credit
Eligibility 1. Proprietary concerns of women
2. Partnership firms, where majority partners are women
3. Companies, where majority of promoters shares are held by women.
Purpose To develop entrepreneur-ship among women and also to ensure the
easy, timely and convenient access to women to institutional credit.
Security Primary: Charge over the assets (movable & immovable) purchased out of
Bank’s finance.
Collateral
 Up to Rs. 2.00 Lacs – NIL
 Above Rs. 2.00 Lacs- Tangible collateral security up to 100% of loan .
Loan Amount Upto Rs. 10.00 Lacs , Out of which WC not to exceed Rs. 5.00 Lacs
Margin : In case of purchase of shop the margin will be 25% irrespective of loan limit.
Loan Limit Margin
Loan upto Rs. 25,000/- Nil
Above Rs. 25,000/- & upto Rs. 2.00 Lacs 15%
Above Rs. 2.00 Lacs & up to Rs. 10.00 25%
Lacs
ROI
Loan Limit Normal ROI If covered under
CGTSME
Loan upto Rs. 50000/- MCLR +1.75% MCLR
Loan above Rs. 50000/- & MCLR +2.00% MCLR
upto Rs. 2.00 Lacs
Above Rs. 2.00 Lacs & up MCLR +2.25% MCLR+1.00%
to Rs. 10.00 Lacs
Process fee 0.50% of the loan amount with a minimum of Rs. 500/-.
Repayment Period/ In case of Term Loan, the repayment period is 5 to 7 years with maximum
Term moratorium of 3 to 6 months depending on the Cash flow / project viability
report. However, working capital shall be reviewed / revised as per bank’s
system in vogue .
51
No.32 ORIENTAL WEAVER CARD (OWC) SCHEME
Circular No RDPS: 43: 2012-13:514 Dated- 12.10.2012
Coverage All weavers and ancillary workers involved in weaving activities.

Eligibility All New and existing customers of the above categories having
adequate experience in the line involved in weaving activities (and
otherwise eligible for credit facilities for carrying out the proposed
activities under any of the existing bank schemes) would be
eligible.
• Beneficiaries of other Government sponsored loan schemes will
not be eligible for coverage under the scheme.
Credit Limit • Maximum Rs. 2.00 lacs per borrowal account.
Security Hyp. of assets created out of Bank funds .
Coverage under • Loan to be compulsorily covered under CGTMSE Scheme. As per
CGTSME Scheme present guidelines Bank is bearing entire cost of Guarantee fee/
Annual Service Charges in respect of the new cases under Rs.
5.00 Lacs.(CGTMSE shall guarantee 85% of the amount in
default.)
• For each Weaver Card issued under the Scheme, the Ministry of
Textile will provide reimbursement of one time Up front Guarantee
& Annual Service Fee for a period upto 3 years payable for
guarantee cover under CGTMSE.
ROI The existing rate of interest as applicable to the Micro & Small
Enterprises (MSE) advances shall apply. At present rate of interest.
on MSE is as under :
LIMIT RATE OF INTT.
Up to Rs. 50000 MCLR +1.75%
Above Rs. 50000 but up to MCLR+ 2.00%
Rs. 2.00 Lacs
Margin Up to Rs. 25000/ - :NIL
Above Rs. 25000/- :20%.
• Margin money support from Ministry of Textile may be included in
the margin money to be brought by the borrower .
Period Oriental Weaver Credit Card limit will be valid for three years.
• The account will be reviewed on yearly basis through a simple
process note.
• For the purpose of annual review no financial papers to be
obtained from the borrowers.
• No process fee to be charged at the time of review/ renewal of the
card.
52
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MSME Schemes

Eligibility  Minimum 2 Year satisfactory (Standard Regular) conduct of

Additional Facility Additional working capital facilities available:

Period of additional Maximum 90 days (3 times in a Financial Year, maximum 180

Security Extension of charge on existing security & filling of charge with

Process Fee NIL

Eligible Borrower who Qualify MSME Plus schematic compliance.

Rate of Interest is linked to collateral coverage as under:

2. Assessment of Term loan:

Monthly income Net take Home

Note: If property stands in the name of Proprietorship firm, Proprietor

ROI MCLR +2.25 % for both TL & OD

2. Cash Credit/Term Loan above Rs 25.00 Lacs:

In case of purchase of Shop / Office premises - Its mortgage is mandatory

Repayment  Term Loan: 3 to 10 years inclusive of maximum moratorium period of 6

Note : Borrower shall be required to bring in minimum of 10% of project cost. .

Repayment Maximum 7 Years

The salient features of the scheme are as under:-

The scheme will be accessed in three potential ways:-

25% to 50% 1 Yr MCLR+2.50%

Scheme/Facility 1. Facility against perishable commodities shall not be considered.

Finacle Scheme AG-44

Eligible entities Individual, Proprietorship, Partnership firms, Limited Liability

Credit Risk Rating Internal Credit Risk Rating:Up to OBC 5

For Working Capital Limit: - 25% minimum

2 Nature of facility Term Loan

AboveRs.2.00 Lacs to MCLR+2.00 ML200 MCLR+1.00 ML100

Process Fee Up to Rs. 5.00 lacs- Nil

Delegated Powers in case of the institute whose final approval is pending

During off season, Regional Offices/Branches may consider sub-limit to cotton

C. Value of Production Value (Rs.)

D. Net surplus (per acre) A(ix)-C(iii)

Eligibility All non-farm entrepreneurial credit extended to individuals, which is

Coverage The Scheme shall cover the entire country.

The limits should be fixed on the basis of risk assessment on a case

Security Security norms will be applicable as per Reserve Bank guidelines on

ROI The interest rate shall be as applicable on Micro and Small

Purpose To purchase transport vehicles for delivery of products/Services;

Nature of Term Loan to be repaid in 60 EMI’s exclusive of moratorium.

Permissible Chassis +Body Building costs + registration + insurance + road

Upfront fee 0.50% of the loan amount.

Nature of Fund based/ Non fund based working capital limits .

Coverage All weavers and ancillary workers involved in weaving activities.

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