FACILITIES PROVIDED BY VARIOUS AGENCIES IN INDIA WITH SPECIAL REFERENCE TO COMMERCIAL BANKS AND DIRECTORATE OF INDUSTRIES AND COMMERCE

PRESENTED BY: LAKSHMI H LAKSHMI V M S REVATHI MILI DINESH MAJITHA B

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Introduction
India is second among all nations in total entrepreneurship activity as per the Global Entrepreneurship Monitor Report 2002. The liberalization of the economy since 1991 has paved the way for a huge number of people to become entrepreneurs. Developing countries like India are striving to be outward looking global economies rather than inward looking local economies. This will be possible only if small and medium scale enterprises (SMEs) are encouraged. Entrepreneurship can be cultivated among the present youth and it can be developed systematically with the help of support system. The post-globalization era has brought with it a growing middle class and rising disposable incomes. This presents tremendous opportunities for developing entrepreneurship. The emerging entrepreneurs can reap the benefits of these opportunities by catering to various demands of this segment through their small scale industries.
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Commercial banks
Commercial banks play an important role in growth and development of economy in general and enterprise sector in particular. The role of bank in promotion and development of business and industry has become all the more important in post nationalization era Most of commercial banks are now geared to provide counseling services to prospective and existing entrepreneurs. Some banks even have consultancy cells to provide guidance to entrepreneurs at the time of project report presentation Such consultancy cells undertake detailed studies also in established units for improving their functioning.
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Cont
Commercial banks came into the business of supporting small scale industries in a significant way only after the nationalization of banks in 1969. Till that time these banks were financing small scale industries. RBI advised commercial banks to initiate activities of increase credit flow to the small scale industries.

Cont
Different schemes implemented by different banks are as follows: State Bank of India launched entrepreneurship development programme in 1978. This programme was of one month duration, having three phases. 1. Initiation phase: creating awareness about entrepreneurial opportunities. 2. Development phase: Training in developing motivation and managerial skills 3. Support phase: Counseling, encouragement and infrastructural support for establishing and running enterprises. State Bank of India (SBI) implemented scheme of financial assistance to technically qualified or trained entrepreneurs.
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SBI
State Bank of India has been playing a vital role in the development of small scale industries since 1956. The Bank has developed a wide array of products to meet the changing needs of the industry. It provides end -to -end solutions for the financial needs of the industry. To service the specific credit needs of small and medium enterprise (SME) the Bank established the Small & Medium Enterprise business unit in 2004. Apart from the general working capital requirements (like Cash credit, Bill Discounting limits etc) to meet the day to day requirements Term loans to take care of investment needs for acquiring fixed assets, Bank has an array of products/schemes to cater to the enterprise specific requirements of SME Units both in Manufacturing and Trade and services sectors.
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Cont
SBI has set up Research and Development Fund for entrepreneurship development. SBI introduced deferred payment guarantee scheme for the purchase of big machines. SBI through its scheme made available fund and non-fund based facilities. SBI provides working capital to industries.

SME Loan Products

For Micro Enterprises and SSIs SME Credit Card (Up to Rs.10 Lakh) SME Smart Score (Up to Rs.50 Lakh) For Startups SBI SMILE (Interest Free Loan as equity) Term Loans for SSIs General Purpose Term Loan for SSI Sector (Up to Rs.50 Lakh) Open Term Loan (Up to Rs.2.5 Cr) Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr) Add Ons SME Credit Plus Standby Line of Credit for Working Capital Food processing Rice Mill Plus Dal Mill Plus Collateral Free Loan SME Collateral Free Loan Miscellaneous Rent Plus SME Construction Equipment Loan SME Car Loan For Traders Traders Easy Loan Flexi Loan for Trade and Services For Doctors Doctor Plus For Schools & Institutes School Plus For Shop Owners SBI Shoppe SBI Shoppe Plus For Restaurant owners Finance to Restaurants For Transport Operators Transport Plus For skill based businesses Artisan Credit Card For Vendors and Dealers: Supply Chain Finance Electronic Vendor Finance Scheme Electronic Dealer Finance Scheme

Loans to Women Entrepreneur Stree Shakti Scheme

For Micro Enterprises and SSIs

SME Credit Card (Up to Rs.10 Lakh)
Product provides loans for the micro enterprises including SSI units, small business enterprises, professional and self employed persons, small retail traders, transport operators etc for meeting any kind of credit requirement including purchase of shops, maximum limit being Rs 10 lakhs including term loan & working capital loan. The loan will be sanctioned for 3 years with an annual review. This product has simplified sanction process without requirement of elaborate financial data. The borrower will be provided a photo identity card and a passbook giving details of the limit and validity of the facility. A cheque book marked as SME Credit Card and a pass book would be issued to the customer.

Cont
SME Smart Score (Up to Rs.50 Lakh)
The Loan product is for units in Micro and Small Enterprise sector in manufacturing trade and services segments to meet working capital needs and for acquisition of fixed assets. A simplified appraisal model has been developed to standardize the appraisal process for loans upto Rs 50 lakhs in SSI sector and upto Rs 25 lakhs for trade and services sector available with attractive interest rates. The loan will be sanctioned for 2 years with an annual review.

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For Startups
SBI SMILE (Interest Free Loan as equity)
The scheme envisages grant of interest free loan as equity assistance towards part of margin requirements of the project, to assist eligible professional and technically qualified entrepreneurs setting up new Micro and Small enterprises and units covered under the Banks Project uptech for technology upgradation. Equity assistance is up to a maximum of Rs.10 lakhs. Professional and Technically qualified persons will cover doctors including dentists, engineers, and management graduates etc. The interest free loan is repayable in 3 years with a moratorium period of 5-7 years.
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Term Loans
General Purpose Term Loan for SSI Sector (Up to Rs.50 Lakh) This product is for existing borrowers for any general commercial purpose such as shoring up of Net Working capital, substitution of high cost debt, R&D, ISO certification etc, subject to disbursement being made in line with the specific purpose approved. Maximum loan available is Rs 50 lakhs repayable in maximum period of 5 years. Open Term Loan (Up to Rs.2.5 Cr) A pre-sanctioned term loan with limit upto Rs 2.5 crore for existing or new corporate or non-corporate customers in manufacturing sector and upto Rs 1 crore for hotels, hospitals, educational institutions in service sector.
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Cont
The scheme provides option of multiple disbursements for multiple purposes like expansion/modernization, substitution of high cost debt, up-gradation of technology, energy conservation system, acquisition of software, hardware, visits abroad for acquiring technology, finalizing deals, participation in fairs, market promotion etc. The sanctioned limit is valid for 1 year. Margin requirement is 10%. The borrower can utilize pre-approved sanction to plan capital expenditure and negotiate with suppliers of machinery and finalize best possible contract.

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Cont
Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr)
The scheme provides term loan for all existing customers and established non customers (subject to takeover norms of the Bank) in manufacturing sector for repayment of high cost debt, VRS scheme expenses, on going capital expenditure such as replacement of parts of machineries, upgradation and renovation, shoring up of net working capital, R&D expenses, acquisition of tools jigs etc. Quantum of Finance is minimum Rs.25 lakhs and maximum Rs.10 crores for non Corporate and no cap for Corporate borrowers. No Margins are required under the scheme. A maximum of three corporate loans can be outstanding per borrower at any point of time.

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Add Ons
SME Credit Plus
For existing and new borrowers this scheme provides a clean cash credit facility to meet contingencies, sudden and unforeseen expenditures like repairs, meeting bulk orders, tax payments, mismatch in cash flows etc. Under the scheme 20% of aggregate WC or max Rs.25 lakhs fund based limit can be availed. Margins are not required and interest rate will be same as applicable to cash credit limit. The facility is repayable in 2 months and can be availed for 12 times a year

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Cont
Standby Line of Credit for Working Capital
For existing units including export units, an additional Working Capital(Fund based & non Fund based) limit by way of cash credit, packing credit and bills discounting against stock, receivables to meet contingencies like bunching of orders, delay in shipment, sudden increase in raw material prices, mismatch in cash flows. Under this 15% of aggregate Working Capital or max Rs.5 crore can be availed. Margins as applicable to original limit. The facility is repayable in 2 months and can be availed any number of times in a calendar year

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Food processing
Rice Mill Plus
Term loan for acquisition of machinery/factory building for modernization/ expansion and working capital needs of Rice Mills engaged in milling, sorting, grading and polishing. No upper ceiling on loan amount.

Dal Mill Plus

Term loan for Dal mill owners for acquisition of machinery, factory building, modernization and all working capital needs.

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Collateral Free Loans

SME Collateral Free Loan (SMECFL)
Collateral free loan for viable projects of micro and small enterprises in manufacturing and service sector with maximum guarantee cover up to Rs.1.00 crore under CGTMSE guarantee scheme for working capital & Term Loan (FB+NFB) facilities.

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For Traders
Traders Easy Loan
Easy loan for specific business needs of traders, wholesalers and professionals, self-employed, small business enterprises, agents engaged in purchase and sale of food grains, commodities, cold storage units, having collaterals like land, buildings and liquid securities. Loan can be availed for normal day to day business requirements or for purchase of equipments/ fixed assets. Loan is available upto Rs 5 crore with very competitive rate of interest.

Flexi Loan for Trade and Services

Term Loans to well established whole sale and Retail Traders, distributors, stockists, construction, transport & supply contractors, hospitals, nursing homes, clinical labs, resorts, travel agents etc for any general purpose such as holding of stocks, book debts, acquisition of land and building, renovation of office/showroom, purchase of vehicles, equipment etc. Repayable in 3-5 years but in deserving cases extendable up to 8 years. Maximum loan Rs.1.00 crore.
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For Transport Operators

Transport Plus
Term loans for purchase of new transport vehicles at cost on road basis and working capital facilities against the receivables. Loans are available for surface transport operators owning more than 10 well maintained and road worthy vehicles including trucks, tankers, tippers, luxury buses. Margins 20% for term loans and working capital loans. Concessions in interest rates are also available.

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For skill based businesses

Artisan Credit Card
The scheme provides loans to Artisans to meet their credit requirements both for investments as well as working capital in a flexible manner at liberal rates of interest. A photo Id card and a passbook will be issued and the limit is valid for 3 years subject to annual review. Beneficiaries registered with the Development Commissioner (Handicrafts) will be eligible for insurance cover under group guarantee scheme for which premium will be paid by the government and the beneficiaries in the ratio of 60:40. Maximum loan under the scheme is Rs. 2.00 Lakh No collateral security is required. Loans will be covered under CGTMSE scheme, the fees for the same will be reimbursement by the Development Commissioner (Handicrafts, Ministry of Textile, GOI)
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Loans to Women Entrepreneur

Stree Shakti Scheme
For women entrepreneurs in Retail trade, Business enterprises, Professionals and self employed, small scale units or tiny units where the women entrepreneurs stake is more than 51%, Term Loan & Working Capital facility is available with concessionary margins and interest rates.

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Miscellaneous
Rent Plus
Loan is given for purchase of residential house and for office space as well. The scheme is a combination of housing loan and SBI Shoppe for professionals and self employed entrepreneurs. The loan is to meet the liquidity mismatches of the borrowers business

SME Construction Equipment Loan

Term Loan for purchase of construction equipments viz. loaders, excavators, cranes etc., for contractors and firms engaged in construction activity. Loan is not available for purchasing old machinery/ vehicles. Maximum loan available is upto Rs 25 crore with minimum margin applicable upto 15%. Tenure of loan can be extended upto maximum of 4 years.

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Sahaj and Surabhi

SAHAJ Current Account
A special Current account for entrepreneurs having small means and who are otherwise not able to have an account with the Bank. They can open account with us with a Quarterly Average Balance of Rs.1,000/- only.

Surabhi deposit account

To cover that section of non-individual customers who have surplus funds for investments, but at the same time need the Convenience of liquidity. Accounts under SURABHI Scheme are Savings Bank/Current Accounts with auto sweep and reverse sweep facility.
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B2B & Power Jyoti

B2B Payment Solution
A complete IT solution to Corporate needs. The dealers/retailers can pool periodical remittances in the pooling account of their service/commodity major with customized MIS availability.

Power Jyoti Current Account

A one stop solution for Fee Collection of educational institutions, recruitment agencies and other SME customers. The highlight of the product is that the funds could be transferred without the remitter having an account in our bank. We have also customized Power Jyoti for brokers.

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Bank of India
Bank of India has established entrepreneurial clinic cum guidance services to guide and assist emerging entrepreneurs. Bank of India is operating following schemes for entrepreneurship development in the country. a) Star artisan credit card scheme. b) Small entrepreneur credit card scheme c) Star SSI supreme scheme d) Small entrepreneur trade card scheme e) Star self-employment credit card scheme f) Scheme for employment enhancement and poverty eradication.

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Punjab National Bank

Punjab National Bank through its Merchant Banking division provides number of benefits to small and middle level entrepreneurs. Punjab National Bank initiated a Mahila Udyam Nidhi Scheme for women entrepreneurs. Punjab National Bank has following schemes for developing the culture of entrepreneurship in the country. i) Credit assistance scheme for very small enterprises ii) Credit assistance scheme for beneficiaries of second preferred sectors.

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Indian Bank
Indian Bank has established an Entrepreneurship service cell to provide consultancy services to prospective entrepreneurs. In addition to these banks all other banks also assist new entrepreneurs in selection of enterprise, preparation and evaluation of project report, market survey, training at different levels, obtaining government clearance, procurement of machinery and equipments and marketing of products of the enterprises.

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Bank of Baroda
The micro and small (service) enterprises shall include small road & water transport operators, small business, professional & selfemployed persons, retail trade i.e. advances granted to retail traders dealing in essential commodities (fair price shops), consumer co-operative stores and advances granted to private retail traders with credit limits not exceeding Rs. 200/- lakh and all other service enterprises, as per the definition under MSMED Act. The bank has for internal purposes given focused attention to finance all Commercial enterprises i.e. enterprises which may be outside the purview of regulatory definition of SME but having turnover up to Rs 150.00 crores and new infrastructure and real estate projects where the project cost is up to Rs. 50/- crores by treating them as part of SME segment.

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Key Benefits
The loans and advances offered by Bank of Baroda for MSME Units can be used for the basic needs of: 1. Acquisition of factory, land and construction of building spaces. 2. Purchase of plant and machinery including lab equipment, testing equipment, etc. 3. Meeting working capital requirements, like raw materials, stock-inprogress, finished goods and for purchase or discounting of bills. 4. Temporary additional assistance for meeting the urgent needs of raw material. 5. Additional monitory assistance for any eligible purpose.

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Working Capital Finance & Term Finance

Baroda SME Loan Pack Baroda Vidyasthali Loan Baroda Arogyadham Loan Baroda Laghu Udhyami Credit Card Baroda Artisans Credit Card (BACC) Baroda Weavers Credit Card Technology Upgradation Fund Scheme (TUFS) For Textile And Jute Industries Credit Linked Capital Subsidy Scheme (CLCSS) For SSI Units Composite Loans Collateral Free Loans Under Guarantee Scheme Of Credit Guarantee Fund Trust For Micro And Small Enterprises SME Short Term Loans SME Medium Term Loans Baroda SME Gold Card Scheme for Financing Energy Efficiency Projects Baroda Overdraft Against Land and Building Prime Minister's Employment Generation Programme (PMEGP) Loans Under Interest Subsidy Eligibility Certificate Scheme of Khadi & Village Industries Commission (KVIC-ISEC) Baroda MSME Capex Card & Baroda MSME Capex Loan

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Services
Key services
Remittances (Baroda Money Express) Collection Services ECS (Electronic Clearing Services) Debit Cards Internet Payment Gateway

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DIRECTORATE OF INDUSTRIES & COMMERCE

A body for supervision and control of District Level functionaries, i.e., the District Industries Centres in implementation of the various schemes and programmes of the Department.

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MISSION AND VISION

VISION Progressive economic development and sustainable employment generation in the state of Kerala through planned industrial development. MISSION The mission of the Directorate of Industries and Commerce is to act as a facilitator for industrial promotion and sustainability of small scale and traditional industrial sector in the State

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OBJECTIVES
The basic objective of the Department is also to act as the Nodal Promotional Agency in the development of industries and industries activities in the State as a whole.

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Cont
The Industries and Commerce Department is headed by the Hon'ble Minister for (Industries). The administrative head of the Industries and Commerce Department is the Principal Secretary (Industries and Commerce). The Directorate of Industries & Commerce Department is located at Vikas Bhavan, Thiruvananthapuram, headed by the Director (Industries & Commerce). This is the functional arm of the Department implementing various industrial activities and is responsible for promoting / sponsoring, Registering, Financing and advising MSME (Micro Small or Medium Enterprise) industries in the state.
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Cont
The role of directorate is to act as a facilitator for industrial promotion and sustainability of MSME (Micro Small or Medium Enterprise) and traditional industrial sector in the state. Directorate of Industries and Commerce is the controlling office of the 14 District Industries Centres , Common Facility Service Centres at Changanacherry and Manjeri and Documentation Centre.

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Functions
The main function of Directorate of Industries and Commerce is to carry out industrial development in the state and implement policies and schemes of Government of India and Government of Kerala. The main functions are: Facilitating sustained industrial development Creating and extending Infrastructural requirement for the development of industries. Promoting Entrepreneurship.

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Functions
1. Promotion of industries with special emphasis on SSIs and Self Employment. 2. Function as facilitator for sustained industrial development. 3. Creating and extending infrastructural requirements for the development of industries in the State. 4. To create wealth and employment commensurate with the immense resource potential of Kerala by developing entrepreneurship among the youth Inculcating Industrial Culture in the State. 6. Joining hands with educational institutions for the development of Entrepreneurship at school/colleges. 7. Identifying and developing entrepreneurial potential in the State
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Cont
8. Providing investment assistances through Single Window Clearance, loans, subsidies, technical assistance, training etc. 9. Strengthen entrepreneurial efforts through consultancy services, marketing assistance, human resources development and for nursing of sick units in the State. 10. Promoting womens entrepreneurship through special Women Industrial Programmes. 11. Conducting EDPs,. EAPs industrial seminars, training programmes. Trade fairs, exhibition and giving awards to entrepreneurs of SSI units.

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Cont
12. Promotion of new entrepreneurial ventures by availing the technical and managerial capabilities of selected institutions in the state including Engineering Colleges / Research laboratories and other major Research and Development Centres under the Scheme of Industry Research Linkage. 13. To assist to setup Industry Incubator by selected NGOs to adopt appropriate technologies to suit local requirements prevailing in the emerging areas / schemes like food processing, electronics, bio-technology etc. 14. To setup proficiency interface cell in the Department with qualified and trained personnel to interact with experts / consultants for promoting viable projects.

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Cont
15. To promote Industry Resource Locator for making available all the details to the industrial community and new entrepreneurs. 16. To form product specific clusters of Industrial units which involves the creation of common corporate entities for sharing opportunities for growth with the assistance of GOI and GOK. 17. Promote SC/ST development through special Industrial programmes. 18. Identifying the clusters for industrial development and providing technical, marketing, consultancy, training, finance, other developmental support. 19. Data base management of small scale industrial units. 20. Undertake periodical surveys. 21. Publication.
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As a catalyst
The Department of Industries and Commerce acts as a catalyst for the overall development of the industrial sector through effective discharge of developmental and facilitation roles. With a view to promote investment and trade, the Department formulates and implements the Policies of the State, Identification of Sectoral Advantages of the State and Human resource development for sustainable and growth-oriented industrialization has been a crucial role of the Department.

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Cont
Facilitating the take off of infrastructure projects that boost the industrial growth has also been the Departments forte. The Department helps enhance the competitiveness of domestic industry through modernization, technology upgradation and adoption of best practices. It also provides a forum for entrepreneurs and industrialists through their associations to represent their needs to the Government, which translates into Policies of the State.

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THANK YOU

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