Eligibility

• 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.
• 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 under Agriculture advances.

Loan Amount

• Maximum loan quantum will be Rs. 20 lakh.

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.20.00 lakh the interest rate as applicable to MSME advances up to Rs. 1.00 Crore.

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 shall not be considered as third party guarantee.
• Guarantee coverage: Micro enterprises (Mfg. & Services) shall be covered under CGTMSE and Retail Trade loan shall be covered under CGFMU.
• For all other Agriculture loans categorized under PMMY, security norms as applicable to Agriculture advances will be followed.

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.

Other Conditions

• The sub classification under PMMY is Shishu (up to Rs. 50,000/-) Kishore (Rs. 50,001/- to Rs.5,00,000/-) Tarun (Rs.5,00,001/- to Rs.10,00,000/-) & Tarun Plus (Rs.10,00,001/- to Rs.20,00,000/-).

• Those entrepreneurs who have availed and successfully repaid previous loans under the 'Tarun category' shall be only eligible to avail loan under Tarun Plus (Rs.10,00,001/- to Rs.20,00,000/-) category.