commercerical banks and directorate of industries help in entrepreneurship

7/27/2019 Commercerical Banks and Directorate of Industries Help in Entrepreneurship

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Introduction

India is second among all nations in total entrepreneurship activity as perthe Global Entrepreneurship Monitor Report 2002.

The liberalization of the economy since 1991 has paved the way for ahuge number of people to become entrepreneurs.

Developing countries like India are striving to be outward looking globaleconomies rather than inward looking local economies.

This will be possible only if small and medium scale enterprises (SMEs)are encouraged.

Entrepreneurship can be cultivated among the present youth and it canbe developed systematically with the help of support system.

The post-globalization era has brought with it a growing middle class and

rising disposable incomes. This presents tremendous opportunities for developing

entrepreneurship. The emerging entrepreneurs can reap the benefits ofthese opportunities by catering to various demands of this segmentthrough their small scale industries.

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Commercial banks

Commercial banks play an important role in growth anddevelopment of economy in general and enterprise sector inparticular.

The role of bank in promotion and development of business and

industry has become all the more important in post nationalizationera

Most of commercial banks are now geared to provide counselingservices to prospective and existing entrepreneurs.

Some banks even have consultancy cells to provide guidance toentrepreneurs at the time of project report presentation

Such consultancy cells undertake detailed studies also inestablished units for improving their functioning.

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Commercial banks came into the business of supporting smallscale industries in a significant way only after the nationalizationof banks in 1969.

Till that time these banks were financing small scale industries.RBI advised commercial banks to initiate activities of increase

credit flow to the small scale industries.

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Different schemes implemented by different banks are as follows: State Bank of India launched entrepreneurship development

programme in 1978.

This programme was of one month duration, having three phases.

1. Initiation phase: creating awareness about entrepreneurialopportunities.

2. Development phase: Training in developing motivation andmanagerial skills

3. Support phase: Counseling, encouragement and infrastructural

support for establishing and running enterprises.

State Bank of India (SBI) implemented scheme of financialassistance to technically qualified or trained entrepreneurs.

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SBI

State Bank of India has been playing a vital role in the development ofsmall scale industries since 1956.

The Bank has developed a wide array of products to meet the changingneeds of the industry.

It provides end -to -end solutions for the financial needs of the industry.

To service the specific credit needs of small and medium enterprise(SME) the Bank established the Small & Medium Enterprise businessunit in 2004.

Apart from the general working capital requirements (like Cash credit,Bill Discounting limits etc) to meet the day to day requirements

Term loans to take care of investment needs for acquiring fixed assets,Bank has an array of products/schemes to cater to the enterprisespecific requirements of SME Units both in Manufacturing and Tradeand services sectors.

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SME Loan ProductsFor Micro Enterprises and SSIs

SME Credit Card (Up to Rs.10 Lakh)SME Smart Score (Up to Rs.50 Lakh)

For StartupsSBI SMILE (Interest Free Loan as equity)

Term Loans for SSIsGeneral Purpose Term Loan for SSI Sector (Up to Rs.50Lakh)Open Term Loan (Up to Rs.2.5 Cr)

Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr)

Add OnsSME Credit PlusStandby Line of Credit for Working Capital

Food processingRice Mill Plus

Dal Mill Plus

Collateral Free LoanSME Collateral Free Loan

For TradersTraders Easy LoanFlexi Loan for Trade and Services

For DoctorsDoctor Plus

For Schools & InstitutesSchool Plus

For Shop Owners

SBI ShoppeSBI Shoppe Plus

For Restaurant ownersFinance to Restaurants

For Transport OperatorsTransport Plus

For skill based businessesArtisan Credit Card

For Vendors and Dealers: Supply Chain Finance

Electronic Vendor Finance SchemeElectronic Dealer Finance Scheme

Loans to Women EntrepreneurStree Shakti Scheme

MiscellaneousRent PlusSME Construction Equipment LoanSME Car Loan

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For Micro Enterprises and SSIs

SME Credit Card (Up to Rs.10 Lakh) Product provides loans for the micro enterprises including SSI units,

small business enterprises, professional and self employed persons,small retail traders, transport operators etc for meeting any kind ofcredit requirement including purchase of shops, maximum limit being Rs

10 lakhs including term loan & working capital loan. The loan will be sanctioned for 3 years with an annual review. This

product has simplified sanction process without requirement ofelaborate financial data.

The borrower will be provided a photo identity card and a passbook

giving details of the limit and validity of the facility. A cheque book marked as SME Credit Card and a pass book would

be issued to the customer.

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For Startups

SBI SMILE (Interest Free Loan as equity) The scheme envisages grant of interest free loan as equity

assistance towards part of margin requirements of the project,to assist eligible professional and technically qualifiedentrepreneurs setting up new Micro and Small enterprises and

units covered under the Banks Project uptech for technologyupgradation.

Equity assistance is up to a maximum of Rs.10 lakhs.Professional and Technically qualified persons will cover

doctors including dentists, engineers, and managementgraduates etc.

The interest free loan is repayable in 3 years with a moratoriumperiod of 5-7 years.

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Term Loans

General Purpose Term Loan for SSI Sector (Up to Rs.50 Lakh) This product is for existing borrowers for any general

commercial purpose such as shoring up of Net Working capital,substitution of high cost debt, R&D, ISO certification etc, subject

to disbursement being made in line with the specific purposeapproved.

Maximum loan available is Rs 50 lakhs repayable in maximumperiod of 5 years.

Open Term Loan (Up to Rs.2.5 Cr)

A pre-sanctioned term loan with limit upto Rs 2.5 crore forexisting or new corporate or non-corporate customers inmanufacturing sector and upto Rs 1 crore for hotels, hospitals,educational institutions in service sector.

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The scheme provides option of multiple disbursements for multiplepurposes like expansion/modernization, substitution of high costdebt, up-gradation of technology, energy conservation system,acquisition of software, hardware, visits abroad for acquiringtechnology, finalizing deals, participation in fairs, market

promotion etc. The sanctioned limit is valid for 1 year. Margin requirement is 10%.

The borrower can utilize pre-approved sanction to plan capitalexpenditure and negotiate with suppliers of machinery and finalize

best possible contract.

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Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr) The scheme provides term loan for all existing customers and established

non customers (subject to takeover norms of the Bank) in manufacturingsector for repayment of high cost debt, VRS scheme expenses, on goingcapital expenditure such as replacement of parts of machineries,

upgradation and renovation, shoring up of net working capital, R&Dexpenses, acquisition of tools jigs etc.

Quantum of Finance is minimum Rs.25 lakhs and maximum Rs.10 croresfor non Corporate and no cap for Corporate borrowers. No Margins arerequired under the scheme.

A maximum of three corporate loans can be outstanding per borrower atany point of time.

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Add Ons

SME Credit Plus

For existing and new borrowers this scheme provides a cleancash credit facility to meet contingencies, sudden andunforeseen expenditures like repairs, meeting bulk orders, taxpayments, mismatch in cash flows etc.

Under the scheme 20% of aggregate WC or max Rs.25 lakhsfund based limit can be availed.

Margins are not required and interest rate will be same as

applicable to cash credit limit. The facility is repayable in 2 months and can be availed for 12

times a year

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Standby Line of Credit for Working Capital For existing units including export units, an additional Working

Capital(Fund based & non Fund based) limit by way of cash credit,packing credit and bills discounting against stock, receivables tomeet contingencies like bunching of orders, delay in shipment,

sudden increase in raw material prices, mismatch in cash flows.

Under this 15% of aggregate Working Capital or max Rs.5 crore canbe availed. Margins as applicable to original limit.

The facility is repayable in 2 months and can be availed any

number of times in a calendar year

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Food processing

Rice Mill Plus

Term loan for acquisition of machinery/factory building formodernization/ expansion and working capital needs of RiceMills engaged in milling, sorting, grading and polishing. No

upper ceiling on loan amount.

Dal Mill Plus

Term loan for Dal mill owners for acquisition of machinery,

factory building, modernization and all working capital needs.

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Collateral Free Loans

SME Collateral Free Loan (SMECFL)

Collateral free loan for viable projects of micro and smallenterprises in manufacturing and service sector with maximumguarantee cover up to Rs.1.00 crore under CGTMSE guarantee

scheme for working capital & Term Loan (FB+NFB) facilities.

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For Traders Traders Easy Loan Easy loan for specific business needs of traders, wholesalers and

professionals, self-employed, small business enterprises, agents engagedin purchase and sale of food grains, commodities, cold storage units,having collaterals like land, buildings and liquid securities.

Loan can be availed for normal day to day business requirements or forpurchase of equipments/ fixed assets. Loan is available upto Rs 5 crore

with very competitive rate of interest. Flexi Loan for Trade and Services Term Loans to well established whole sale and Retail Traders,

distributors, stockists, construction, transport & supply contractors,hospitals, nursing homes, clinical labs, resorts, travel agents etc forany general purpose such as holding of stocks, book debts,acquisition of land and building, renovation of office/showroom,purchase of vehicles, equipment etc.

Repayable in 3-5 years but in deserving cases extendable up to 8years.

Maximum loan Rs.1.00 crore.

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For Transport Operators

Transport Plus

Term loans for purchase of new transport vehicles at cost on roadbasis and working capital facilities against the receivables. Loans areavailable for surface transport operators owning more than 10 well

maintained and road worthy vehicles including trucks, tankers,tippers, luxury buses.

Margins 20% for term loans and working capital loans. Concessions ininterest rates are also available.

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For skill based businesses

Artisan Credit Card The scheme provides loans to Artisans to meet their credit

requirements both for investments as well as working capital in aflexible manner at liberal rates of interest.

A photo Id card and a passbook will be issued and the limit is valid for

3 years subject to annual review.

Beneficiaries registered with the Development Commissioner(Handicrafts) will be eligible for insurance cover under groupguarantee scheme for which premium will be paid by the governmentand the beneficiaries in the ratio of 60:40.

Maximum loan under the scheme is Rs. 2.00 Lakh

No collateral security is required. Loans will be covered underCGTMSE scheme, the fees for the same will be reimbursement by theDevelopment Commissioner (Handicrafts, Ministry of Textile, GOI)

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Loans to Women Entrepreneur

Stree Shakti Scheme

For women entrepreneurs in Retail trade, Business enterprises,Professionals and self employed, small scale units or tiny units

where the women entrepreneurs stake is more than 51%, TermLoan & Working Capital facility is available with concessionarymargins and interest rates.

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Miscellaneous

Rent Plus

Loan is given for purchase of residential house and for office space as

well.

The scheme is a combination of housing loan and SBI Shoppe forprofessionals and self employed entrepreneurs. The loan is to meetthe liquidity mismatches of the borrowers business

SME Construction Equipment Loan Term Loan for purchase of construction equipments viz. loaders,

excavators, cranes etc., for contractors and firms engaged inconstruction activity.

Loan is not available for purchasing old machinery/ vehicles.

Maximum loan available is upto Rs 25 crore with minimum marginapplicable upto 15%.

Tenure of loan can be extended upto maximum of 4 years.

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B2B & Power Jyoti

B2B Payment SolutionA complete IT solution to Corporate needs. Thedealers/retailers can pool periodical remittances in the poolingaccount of their service/commodity major with customizedMIS availability.

Power Jyoti Current Account

A one stop solution for Fee Collection of educationalinstitutions, recruitment agencies and other SME customers.

The highlight of the product is that the funds could betransferred without the remitter having an account in ourbank. We have also customized Power Jyoti for brokers.

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Bank of India

Bank of India has established entrepreneurial clinic cum guidanceservices to guide and assist emerging entrepreneurs.

Bank of India is operating following schemes for entrepreneurshipdevelopment in the country.

a) Star artisan credit card scheme.

b) Small entrepreneur credit card scheme

c) Star SSI supreme scheme

d) Small entrepreneur trade card scheme

e) Star self-employment credit card scheme

f) Scheme for employment enhancement and poverty eradication.

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Punjab National Bank

Punjab National Bank through its Merchant Banking divisionprovides number of benefits to small and middle levelentrepreneurs.

Punjab National Bank initiated a Mahila Udyam Nidhi Scheme forwomen entrepreneurs.

Punjab National Bank has following schemes for developing theculture of entrepreneurship in the country.

i) Credit assistance scheme for very small enterprises

ii) Credit assistance scheme for beneficiaries of second preferred

sectors.

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Indian Bank

Indian Bank has established an Entrepreneurship service cell toprovide consultancy services to prospective entrepreneurs.

In addition to these banks all other banks also assist newentrepreneurs in selection of enterprise, preparation andevaluation of project report, market survey, training at different

levels, obtaining government clearance, procurement ofmachinery and equipments and marketing of products of theenterprises.

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Key BenefitsThe loans and advances offered by Bank of Baroda for MSME Units can be

used for the basic needs of:

1. Acquisition of factory, land and construction of building spaces.

2. Purchase of plant and machinery including lab equipment, testingequipment, etc.

3. Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills.

4. Temporary additional assistance for meeting the urgent needs of rawmaterial.

5. Additional monitory assistance for any eligible purpose.

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Working Capital Finance & Term Finance Baroda SME Loan Pack

Baroda Vidyasthali Loan

Baroda Arogyadham Loan

Baroda Laghu Udhyami Credit Card

Baroda Artisans Credit Card (BACC)

Baroda Weavers Credit Card

Technology Upgradation FundScheme (TUFS) For Textile And JuteIndustries

Credit Linked Capital SubsidyScheme (CLCSS) For SSI Units

Composite Loans Collateral Free Loans Under

Guarantee Scheme Of CreditGuarantee Fund Trust For MicroAnd Small Enterprises

SME Short Term Loans

SME Medium Term Loans

Baroda SME Gold Card

Scheme for Financing EnergyEfficiency Projects

Baroda Overdraft Against Land and

Building Prime Minister's Employment

Generation Programme (PMEGP)

Loans Under Interest SubsidyEligibility Certificate Scheme ofKhadi & Village Industries

Commission (KVIC-ISEC) Baroda MSME Capex Card & Baroda

MSME Capex Loan

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Services

Key servicesRemittances (Baroda Money Express)

Collection Services

ECS (Electronic Clearing Services)

Debit Cards Internet Payment Gateway

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DIRECTORATE OF INDUSTRIES & COMMERCE

A body for supervision and control of District Levelfunctionaries, i.e., the District Industries Centres inimplementation of the various schemes and programmesof the Department.

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MISSION AND VISION

VISION Progressive economic development and sustainable

employment generation in the state of Kerala throughplanned industrial development.

MISSION The mission of the Directorate of Industries and

Commerce is to act as a facilitator for industrialpromotion and sustainability of small scale andtraditional industrial sector in the State

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OBJECTIVES

The basic objective of the Department is also to act as theNodal Promotional Agency in the development ofindustries and industries activities in the State as awhole.

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The Industries and Commerce Department is headed bythe Hon'ble Minister for (Industries).

The administrative head of the Industries and CommerceDepartment is the Principal Secretary (Industries andCommerce).

The Directorate of Industries & Commerce Department islocated at Vikas Bhavan, Thiruvananthapuram, headed bythe Director (Industries & Commerce).

This is the functional arm of the Department

implementing various industrial activities and isresponsible for promoting / sponsoring, Registering,Financing and advising MSME (Micro Small or MediumEnterprise) industries in the state.

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The role of directorate is to act as a facilitator forindustrial promotion and sustainability of MSME (MicroSmall or Medium Enterprise) and traditional industrialsector in the state.

Directorate of Industries and Commerce is the controllingoffice of the 14 District Industries Centres , CommonFacility Service Centres at Changanacherry and Manjeriand Documentation Centre.

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Functions

The main function of Directorate of Industries andCommerce is to carry out industrial development in thestate and implement policies and schemes of Governmentof India and Government of Kerala. The main functionsare:

Facilitating sustained industrial development

Creating and extending Infrastructural requirement forthe development of industries.

Promoting Entrepreneurship.

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8. Providing investment assistances through Single WindowClearance, loans, subsidies, technical assistance, training etc.

9. Strengthen entrepreneurial efforts through consultancy services,marketing assistance, human resources development and fornursing of sick units in the State.

10. Promoting womens entrepreneurship through special WomenIndustrial Programmes.

11. Conducting EDPs,. EAPs industrial seminars, training programmes.Trade fairs, exhibition and giving awards to entrepreneurs of SSI

units.

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12. Promotion of new entrepreneurial ventures by availing thetechnical and managerial capabilities of selected institutions inthe state including Engineering Colleges / Research laboratoriesand other major Research and Development Centres under theScheme of Industry Research Linkage.

13. To assist to setup Industry Incubator by selected NGOs to adoptappropriate technologies to suit local requirements prevailing inthe emerging areas / schemes like food processing, electronics,bio-technology etc.

14. To setup proficiency interface cell in the Department withqualified and trained personnel to interact with experts /consultants for promoting viable projects.

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As a catalyst

The Department of Industries and Commerce acts as a catalystfor the overall development of the industrial sector througheffective discharge of developmental and facilitation roles.

With a view to promote investment and trade, the Departmentformulates and implements the Policies of the State,Identification of Sectoral Advantages of the State and Humanresource development for sustainable and growth-orientedindustrialization has been a crucial role of the Department.

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Facilitating the take off of infrastructure projects thatboost the industrial growth has also been theDepartments forte.

The Department helps enhance the competitiveness ofdomestic industry through modernization, technologyupgradation and adoption of best practices.

It also provides a forum for entrepreneurs andindustrialists through their associations to representtheir needs to the Government, which translates into

Policies of the State.

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commercerical banks and directorate of industries help in entrepreneurship

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