SSI Charter

With a view to increasing the credit flow to SSI, the Bank has come out with ‘ SSI Charter'. The charter brings out the corporate goals of the Bank for increasing the credit flow to SSI. They are as follows:

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