3. Micro, Small and Medium EnterprisesSalient features of lending to Micro, Small & Medium Enterprises (MSMEs): 

A) Direct Finance

The Bank is encouraging credit flow to Small and Medium  & Micro Enterprises. This consist of both manufacturing and service sectors.

1. Micro (Manufacturing) Enterprises: The Enterprises engaged in the manufacture, production, processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.25.00 lakhs *.

2. Small (Manufacturing) Enterprises: The Enterprises engaged in the manufacture, production , processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.5.00 Crores *.

* original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries vide their notification no. SO.1722(E) dated 05.10.2006

3. Micro (Service) Enterprises: Enterprises engaged in providing / rendering of services,  whose investment in equipment does not exceed Rs. 10.00 lakh **

4. Small (Service) Enterprises: Enterprises engaged in providing / rendering of services,  whose investment in equipment does not exceed Rs. 2.00 Crores **

** original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006.

The Micro and Small Service Enterprises will include Small Road and Water Transport Operators, Small Business, Professional and Self-employed persons and all other service enterprises as per the above definition. Advances rendered to units in teh KVI Sector will also come under Micro & Small Enterprises.

5. Medium (Manufacturing) Enterprises: Enterprises engaged in the manufacture, production , processing, preservation of goods and whose investment cost in Plant & machinery is above Rs.5.00 Crores & up to Rs.10.00 crore *

* original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries vide their notification no. SO.1722(E) dated 05.10.2006

6. Medium (Service) Enterprises: Enterprises engaged in providing / rendering of services,  whose investent in equipment is above Rs. 2.00 Crores and upto Rs.5.00 crore **

** original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006.

Loans to Micro and Small Enterprises will come under Priority Sector, whereas loans to Medium Enterprises will come under Non-Priority Sector

B) Indirect Finance

1. Persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries.
2. Advances to co-operatives of producers in teh decentralised sector viz. artisans, village and cottage industries.
3. Loans granted by Banks to NBFCs for onlending to Small and Micro Enterprises.