Maha MSE Collateral Free Term Loan Scheme
The Maha MSE Collateral Free Term Loan Scheme is a term loan facility offered by Bank of Maharashtra as part of its MSME financing products. It provides funds for business / project purposes without the requirement of collateral, subject to guarantee cover under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises). Launched as part of the “Maha MSME / MSE” suite of products, it aims to ease credit access, especially for small enterprises lacking sufficient assets to pledge.
Key Features
- Term loan facility: This is not a revolving credit. You receive disbursement(s) for a project or business purpose and repay over time.
- Maximum limit: ₹5.00 crore: The scheme states that term loans up to ₹5.00 crore are allowed under the collateral-free scheme.
- No collateral security: The distinguishing feature is that you are not required to pledge collateral / security, as long as the loan is covered by CGTMSE guarantee.
- Primary security: The assets financed / created under the loan (machinery, equipment, project assets) will serve as the primary security.
- Minimum margin 25 %: You have to bring in 25 % of the project / cost from your own funds before the bank advances the rest.
- Repayment period up to 7 years (including moratorium): The scheme allows a repayment schedule over a 7-year period, which includes any moratorium (i.e. initial period of no principal repayment) portion.
- Interest / pricing: The interest rate is structured as MCLR (Marginal Cost of Funds - Based Lending Rate) + BSS (Business Strategy Spread) + Strategic Premium, adjusted depending on internal risk rating etc. For smaller amounts (e.g. up to ₹25 lakh) a standard premium is applied.
Financial Assistance
Eligibility for the Scheme
Who Can apply:
- Micro and Small Enterprises (MSEs) as per MSME definition.
- Enterprises require term loans for business / project purposes.
- Willing to bring a margin of 25 % of the project cost
Documents Required for the Scheme
- Identity proof (PAN, Aadhaar, Passport, Voter ID, etc.)
- Address proof (electricity bill, utility bill, lease/rent agreement etc.)
- MSME / MSE / Udyam registration certificate
- Financial statements / audited accounts of past years
- Income tax returns
- Bank statements (12–24 months)
- Project proposal / business plan, cost break-up
- Details of assets to be financed (machinery, equipment etc.)
- Guarantee / CGTMSE application forms
- KYC documents of promoters / directors
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start instantly with guided support. Our team verifies eligibility, collates your documents, and submits the application on your behalf. You track progress, while we handle documentation and follow-ups end-to-end.
Recommended for: Lean teams or first-time applicants.
Option 2: Direct via Bank of Maharashtra branch
- Visit a Bank of Maharashtra branch offering MSME lending
- Request the “Maha MSE Collateral Free Term Loan” application form
- Fill in required details, attach supporting documents
- Submit to branch; bank will assess your viability, margin, CGTMSE guarantee eligibility, and security structure
- After approval, term loan is sanctioned and disbursed per schedule
Option 3: Online / digital (if available)
- Check if Bank of Maharashtra has an online MSME/loan portal
- Fill application digitally, upload scanned documents
- Branch / back-office verifies and approves
Power Combos with The Scheme
