The Indian economic journey can broadly be divided broadly into two segments: pre-1990 and post-1990. The banking scenario in the country has also witnessed huge changes post 1990. ICICI Bank represents modern India’s enterprising economy. The bank has an extensive focus towards SMEs.
ICICI Bank has worked hard to present itself as a thought leader in the domain of SME banking. In this bid, this bank has taken leadership in making the SMEs aware of how to utilize their existing resources to make their business more efficient and competitive.
The bank offers several schemes for MSMEs:
Loans under CGTMSE
This is a facility specially designed under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme of SIDBI and the Ministry of Small and Medium Enterprises. Under this scheme, ICICI Bank offers cash credit for meeting the working capital requirements of MSMEs. It also provides letter of credit support in order to facilitate trade for MSMEs. Under this scheme, ICICI Bank also takes guarantee for the performance of financial obligations. It also offers term loans for the purchase of commercial assets and for business expansion.
The maximum amount of loans offered under this scheme is Rs. 10 million.
The bank gives priority to manufacturing MSMEs for such loans.
Vendor and Dealer Finance
This scheme is designed to solve the cash flow needs of MSMEs and help them run smoothly, as well as for the development of business. Under this scheme, entrepreneurs get funds conveniently, on time and at a reasonable cost.
Vendor Bill Discounting
Vendor Bill Discounting is the solution that the bank offers to meet the working capital requirements of MSMEs. This facility is available only to vendors with a turnover of at least Rs 2 crore. This helps businesses meet their working capital needs, and allows them to access funds at competitive interest rates.