Information on corporation bank loan schemes, sme loans, micro financing in India | SupportBiz

Corporation Bank

Most banks in India offer finance to micro, small and medium-sized units in the country, under different schemes. Corporation Bank, too, offers several loan schemes for the benefit of SMEs in different sectors in India (http://www.corpbank.com/asp/0100text.asp?presentID=144&headID=0). The major ones among these schemes are as under:

Corp SME Texplus Scheme

This scheme aims at satisfying the financial requirements of small and medium-sized textile units in the country. Under this scheme, foreign currency loans are also offered to exporters, at liberal terms, based on the consistency of their performance.

Finance is made available to both new and existing textile units under this scheme, for the purposes of working capital, expansion, installation of machinery, technological up-gradation or repayment of high-cost debts.

No collateral is required for loans of up to Rs 25 lakh. The interest rate under this scheme is 50 bps below the going rate, with additional relaxation offered to SME rated customers.

Corp SME Autoplus Scheme

Through this scheme, Corporation Bank aims at providing finance to small and medium-sized auto ancillary units, which supply their products to automobile companies.

Finance is available to both new and existing businesses, for the purpose of acquiring plant and machinery and to satisfy working capital requirements.

No collateral is required for loans of up to Rs 25 lakh. The rate of interest is 50 bps below the applicable card rate, with additional relaxation offered to SME rated borrowers.

Corp SME Gold Card Scheme

This scheme aims at providing finance to loyal SME customers of the bank, who have satisfactory working capital limits.

The purpose of these loans is to help SMEs tide over temporary cash flow crises and meeting their emergency cash requirements.

Since these loans are available only to existing SME customers of the bank, no additional collateral is required to be furnished. The card rate of interest is applicable on these loans, with additional relaxation being offered to SME rated borrowers.

Corp SME Credit Card Receivable Funding

This scheme provides funds to SME units against their credit card receivables. The major focus of this scheme is on SME units offering hospitality services, like restaurants, lodges and clubs, those into healthcare, and retailers, which satisfy the bank’s criteria.

The rate of interest charged under the scheme is 0.25 per cent less than the applicable card rate. No collateral is required under this scheme, except for charge on credit card receivables.

Corp SME Receivable Funding

This scheme offers finance to SMEs in the manufacturing sector, against their receivables from their clients. Usually, there is a delay of about 90 days in receiving payment by these SME units, in return for the goods sold to large corporation. This scheme aims at mitigating the liquidity crunches in case of such SMEs.

These loans are available to SME vendors supplying to reputed large corporations, as well as to SMEs having a good track record of supplies to large firms.

No collateral is required under this scheme, except for charges on receivables. The rate of interest is 0.25 per cent less than the applicable card rate, with further relaxation available to SME rated customers.

SME Liquid Plus Scheme

This scheme offers finance to new as well as existing SMEs in the manufacturing sector, which fulfil the criteria decided upon by the bank.

Finance is made available to these units for the purpose of resolving their liquidity crunches and for meeting expenditure incurred on research and development, product development, marketing, branding, stocking seasonally available raw material, and executing unexpected bulk orders.

Mortgage of immovable property or financial assets are accepted as collateral under this scheme. The rate of interest is 0.25 per cent less than the applicable card rate, with further relaxation available to SME rated borrowers.

Corp Laghu Udhyami Credit Card Scheme

This scheme aims at satisfying the finance requirements of small business units, village industries, artisans, professionals and self-employed people.

Funds are available to meet the term loan and working capital requirements of these individuals/businesses.

No collateral is required for loans of up to Rs 10 lakh, provided they are covered under CGTMSE (Credit Guarantee Trust Fund for Micro and Small Enterprises). The rate of interest applicable under this scheme is 12.4 per cent.

Corp Term Plus Scheme  

Under this scheme, finance is available to existing SME units, for the purpose of investing in/upgrading plant and machinery or for expansion/modernisation of their businesses.

The assets created through the loan can be used as collateral under this scheme.