Today Indian banks offer several user friendly schemes for SMEs. The Indian Bank is one of them which offers financing schemes for SMEs. It hasloans products for financing industrial clusters with finer rates of interest, which create value for customers. To enhance flow of credit to MSME, a department as formed as Small and Medium Enterprises Development Department, reports CIOL. This department reviews the existing policy framework to provide credit to SME’s; takes measures to centralise the processing of SME proposals in major centres; takes over SMEs from other financial agencies or banks.
What is the SME policy of Indian Bank?
On receipt of loan application an acknowledgement is issued to the client immediately. The applicant is called for discussion within ten days after receipt of loan application. The working capital limits recommended must be need based and realistic, especially to new units. The fund based working capital limits for Micro and small enterprises is up to Rs. 5 crore should be assessed based on the turn over method as suggested by Nayak committee Recommendations., wherein a minimum of 20 % of the projected turn over should be financed by the bank or short term bank credit method whichever is higher. For further details: For More: www.smallenterpriseindia.com