1. Objective of the Scheme: To extend financial assistance to New / Existing Units in Micro and Small Enterprises with over all project outlay of Rs.50.00 lakhs (including existing project outlay)

2. Eligibility of the Scheme:
a. New Enterprises in Micro / Small scale sector for manufacture, preservation or processing of goods irrespective of location and service sector projects except SRTO (Like Hospitals, Fast Food restaurant etc.)
b. Existing Micro and Small Scale Industrial Units and Service Enterprises, undertaking Expansion, Modernization, Technology Upgradation and Diversification irrespective of locations.

3. Purpose of the Assistance:
For Creation of Fixed Assets

4. Quantum of Loan:
1. For New Units
Term Loan - 80% of Project Cost - Maximum of Rs.40.00 lakhs.
2. For Existing Units
Term Loan - 75% of Project Cost - Maximum of Rs.37.50 lakhs

5. Project Cost:
a. Project Cost shall not exceed Rs.50.00 lakhs in case of New Unit
b.In respect of existing units, Project Cost including existing project outlay shall not exceed Rs.50.00 lakhs

6. Financial Norms:

a. Promoter's Contribution:
The Minimum Promoter's contribution shall be fixed at 20% of the project cost.
b. DER:
New Units : 4.00 : 1.00
Existing Units : 3.00 : 1.00
c. Rate of Interest : 13.5% p.a
d. Repayment Period :
The loan repayment period shall not exceed 6 years including moratorium
e. Mortorium :
The moratorium period shall be 6 months to 24 months (maximum) depending on the project implementation period

7. Fees Payable :
a. Investigation Fees; Uprong Fee, RCF:
As applicable to general term loan category
b. Pre-closure Premium:
The pre-closure premium will be collected as per the norms / procedure /practice followed for term loan.

8. Collateral Security:
The collateral security offered shall be stipulated as per the existing policy guidelines