• Micro units in non - corporate sector engaged in non - farm activities for income generation.

Purpose

• The loan will be sanctioned as composite loan covering working capital and term loan for the purpose of income generating activities. Maximum loan will be Rs. 10 lacs irrespective of the project cost.
• The following activities under PMMY has been included:

a. Activities allied to Agriculture e.g. Pisiculture, Bee keeping, poultry, dairy, goat rearing, fishery, grading, sorting, aggregation agro industries.

b. Agri clinics and Agro business centre's

c. Food and Agro processing units.

d. Services which are supporting the above.

e. Loans to Tractors & Power tillers unde

Loan Amount

• Maximum loan will be Rs. 10 lacs irrespective of the project cost.

Margin

• As applicable to Micro Enterprises as per MSE policy of the Bank.

Rate of Interest

• Loan amount upto Rs.50,000/- the interest rate will be RLLR (1 Year).
• For loan amount of above Rs.50,000/- & up to Rs.10.00 lac the interest rate as applicable to MSME advances up to Rs. 1 Cr.

Security & Guarantee

• Prime: The assets created out of the Bank Finance and from the contribution from the borrower as a margin.
• Collateral: Nil

Third Party Guarantee: No third party Guarantee. The guarantee of partners for the loan given to partnership firm will not be considered as third party guarantee.

• Guarantee coverage: Micro enterprises (Mfg. & Services) shall be covered under CGTMSE and Retail trade loan should be covered under CGFMU.
• For all other Agriculture loans categorized under PMMY, security norms as applicable to Agriculture advances, have to be followed scrupulously.

Repayment Period

• Cash Credit: On demand and will be renewed based on discretion of the Bank.
• Term Loan will be repaid within a maximum period of 5 years

Processing Fee

• As per the extant guidelines.