The industrial units those engaged in the manufacture, processing or preservation of goods and whose investment in Plant and machinery (Original Cost) does not exceed Rs.1 crore.
What is the criteria for Tiny unit ?
All Small Scale units whose investment in Plant & Machinery is upto Rs.25 lac are treated as Tiny Enterprises, irrespective of the location of the unit.
Whether both Term finance and working capital finance are sanctioned by Bank ?
Yes, both Term finance and working capital are available.
Whether collateral security is required ?
No collateral/third party guarantee for loans upto Rs.5 lac for Tiny units.
No collateral/third party guarantee for loans upto Rs.25 lac covered under Credit Guarantee Trust Scheme of SIDBI in case of SSI & Tiny units.
For other loans collateral/ third party guarantee will be considered as per Government / Bank's policy guidelines.
What is the criteria for SSI unit ?