All nationalised banks in India have special schemes that cater to the financial needs of MSMEs, to help them set up and grow. Vijaya Bank is no exception to this. It offers a number of tailor-made schemes for the benefit of different categories of small businesses and entrepreneurs, at attractive rates of interest (http://www.vijayabank.com/MSME).
The following are some of the bank’s major schemes for MSMEs:
V-Vyapar: This scheme offers funding to aspiring entrepreneurs who are interested in starting a business of their own. The loan can also be used for expanding the growth capabilities of existing MSMEs, too. The existing rate of interest under this scheme is 12.25% p.a.
V-Restaurants: Under this scheme, we offer finance to hoteliers who want to set up their own eateries, or to improve the capabilities of already existing ones. The rate of interest is 12.25% p.a.
V-Rent: This scheme of ours helps entrepreneurs finance the rent on premises that will be used for commercial purposes.
V-Dhanya: This scheme offers finance to owners of flour mills, helping them set up their own units or expand the capabilities of existing ones. The rate of interest under this scheme is 12.25% p.a.
Apart from this, the bank offers some other schemes for MSMEs, too, such as V-Vehicles for transportation firms, V-Dhanvantari for doctors, and V-Vidya Vahini for educational institutions.
No income criteria have been specified for MSMEs to avail of these schemes. However, the loan eligibility of an entrepreneur would be decided based on the expected turnover/revenue cited by him/her.
Loans of up to Rs. 1 crore are covered under the Credit Guarantee fund Trust for Micro & Small Enterprises (CGTMSE) scheme and, hence, do not require any collateral.
The main attraction of Vijaya Bank’s loan schemes for MSMEs is the attractive rates of interest. Moreover, the bank also offers the facility of online tracking of loan applications by MSMEs. It also acknowledges the receipt of MSME loan applications online.
Vijaya Bank largely focus on small industrial clusters in all districts of Karnataka state. For instance, the bank has helped a considerable number of small units in the mechanical tools cluster in Bangalore and the industries in rural areas in North Karnataka.
As of March 31, 2013, there were 1,58.636 MSMEs across India covered by Vijaya Bank.