Credit Facilitation Through Bank

1. The security norms and interest rates vary from bank to bank.
2. MSME units are provided with working capital in the form of bill discounting facility, overdraft against book debts, and open cash credit.
3. Term loans are provided in order to set up new units. In the case of existing units, term loans are provided for diversification, modernisation, and expansion of the unit.
4. Non-fund-based limits in the form of a foreign letter of credit, foreign bank guarantees, letter of credit, guarantees, etc. are provided.
5. Handholding facility is provided to entrepreneurs. Documentation help is also provided by the scheme.

Documents Required for Credit Facilitation Scheme

Depending on the purpose of the loan, the list of documents that must be submitted will vary. The general documents that must be submitted are mentioned below:

1. Identity proof
2. Address proof
3. Business address proof
4. In case the business is at a leased or rented premise, the lease deed or rental agreement must be submitted
5. Profile of the MSME unit
6. Estimate balance sheet for the next 2 years
7. In case the required amount is Rs.1 crore and above, CMA data in the required format must be submitted
8. In the case of term loan requirements, the project format must be submitted.
9. Certificated of Incorporation/Memorandum and Articles of Association/Rules & By-laws/Trust Deed/Partnership Deep
10. Creditors, debtors, value of the stock, and the monthly sales and production data for the current fiscal year, etc.
11. Asset and Liability Statement of directors, guarantors, promoters, etc., along with their updated income tax returns must be submitted
12. Copy of the Entrepreneur's Memorandum/ SSI registration certificate
13. Balance Sheet for the last three years along with the income tax returns
14. Application form in the required format
15. Details of accounts with the existing banks
16. Sanctioned building plan/Quotations/Estimates, etc.
17. Sanction from the Electricity Board and clearance from the Pollution Control Board must be submitted