Maha MSME Machinery/Equipment Scheme

Maha MSME Machinery/Equipment Scheme

The Maha MSME Machinery/Equipment Scheme is an initiative by the Bank of Maharashtra. Under this initiative MSMEs in Maharashtra get access to loan facilities for purchasing essential machinery & equipment

Highlights

  • Term loans up to Rs 50 crore for purchase of machinery and equipment.
  • CGTMSE collateral-free guarantee available for loans up to ₹5 crore
  • Machinery or equipment bought with the loan acts as the primary security.
  • If additional collateral provided interest rate will be reduced 

What is Maha MSME Machinery/Equipment Scheme ?

  • It is loan facility provided by Bank of Maharashtra to MSMEs for purchasing machinery and equipment to support their growth & expansion
  • It provides loan amounts up to ₹50 crore depending on enterprise scale and credit risk.
  • It considers machinery or equipment bought with the loan as the primary security.
  • It provides CGTMSE collateral free loan up to  ₹5 crore and unsecured loan to qualified MSME up to  ₹1 crore.
  • It provides a 7 year repayment period and incentivises reduction in interest rate in case of additional collateral provided.

Objectives of the Scheme

  • To modernize MSME operations by facilitating capital investment in machinery and equipment.
  • To enhance productivity, competitiveness, and product quality among MSMEs in Maharashtra
  • To promote sustainable and efficient production practices and enable technology adoption

Benefits of the Scheme

  • Access to Large-Scale Financing
    MSMEs can get term loans up to ₹50 crore for purchasing modern machinery and equipment.
  • Collateral-Free Credit up to ₹5 Crore
    Through CGTMSE cover, loans up to ₹5 crore can be availed without collateral
  • Support for Modernization & Competitiveness
    Funding for latest machinery helps MSMEs improve productivity, efficiency, and product quality, making them more competitive in domestic and export markets
  • Encourages Entrepreneurship & Growth
    By reducing capital investment pressure, the scheme helps new entrepreneurs start ventures and existing MSMEs scale up faster

Financial Assistance Under the Scheme

Component 

Assistance 

Term Loan 

Up to ₹50 crore based on enterprise profile

Margin requirement 

25% of the project needs to be covered by MSME and rest can be availed as loan

Loan Cover 

CGTMSE collateral free loan up to Rs 5 crore

Unsecured loan up to Rs 1 crore for qualified MSME

Interest reduction 

If MSME provides extra collateral then the interest on loan will be reduced

Eligibility for the Scheme

You are eligible if:

  • You are a registered MSME under Udyam 
  • You are an enterprise in Maharashtra, with at least 1–2 years operational history

You are not eligible if:

  • You are not registered MSME under Udyam
  • You are an enterprise outside Maharashtra

Documents Required for the Scheme

  • PAN Card & GST Registration 
  • Annual statements, Tax returns for the last 2 years 
  • Quotations/invoices from the machinery/equipment supplier

Application Process for the Scheme

You can apply:

  • Apply online or visit a branch of Bank of Maharashtra

Examples of Where The Scheme Can Be Used

  • A small textile manufacturer in Pune secures a ₹15 lakh loan under the scheme to buy a modern weaving machine, raising production by 40% within a year
  • A food processing unit in Nagpur  takes a loan of ₹3 crore to purchase machinery. Since it’s under ₹5 crore, the loan can be guaranteed by CGTMSE.
  • An engineering firm in Thane upgrades its CNC machinery with support from the scheme