Micro Small Enterprise Funding Scheme

Objective	To extend financial assistance to new / existing units in micro and small enterprises with overall project outlay of Rs.50 lakh (including existing project outlay).
Eligibility	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). Existing Micro and Small Enterprises, Service enterprises undertaking expansion, modernisation, technology upgradation and diversification irrespective of locations. Prop./Partnership/Ltd. companies
Purpose	For creation of fixed assets
Quantum of Loan	For new units : TL : 80% of project cost subject to a maximum of Rs. 40 lakh For existing units: TL: 75% of project cost subject to a maximum of Rs.37.50 lakh
Project Cost	Project cost shall not exceed Rs. 50 lakh in case of new unit.
Promoter’s Contribution	New units : 20% of Project Cost Existing units : 25% of Project Cost
Debt Equity Ratio	New units : 4 : 1 Existing units : Below 3 : 1
Repayment	The period shall not exceed 6 years including moratorium of 6 months.
Collateral Security	50% of the loan sanctioned (minimum).