Maha MSME Project Loan Scheme
The Maha MSME Project Loan Scheme is an initiative by the Bank of Maharashtra. It aims to boost MSME growth by offering flexible, need-based project finance, including capital subsidies and collateral-free lending, which is relatively unique among public sector banks.
Highlights
- Term loans to MSMEs for establishing or expanding projects across sectors
- Supports both greenfield and brownfield projects
- Collateral free loans up to ₹5 crore under CGTMSE
- Flexible loan repayment structure up to 10 years.
What is Maha MSME Project Loan Scheme ?
- Under the scheme Bank of Maharashtra provides financial assistance to MSMEs.
- The scheme provides term loan facility, collateral free loan and interest subsidy.
- The scheme provides facilities like flexible loan repayment structure and simplified collateral requirements
- The scheme covers all MSME sectors such as Manufacturing, Services & Trading.
Objectives of the Scheme
- To promote the establishment / expansion of MSME projects in Maharashtra by easing access to term finance.
- To reduce financial barriers (collateral, high interest) and encourage formal investment in the MSME sector.
- To support growth, employment, and industrialization in the state via better MSME funding
Benefits of the Scheme
- Collateral relief
Collateral free loans up to ₹5 crore are covered under CGTMSE eliminating the need for additional collateral. - Flexible repayment
Long tenure up to 10 years including a 2 year moratorium period gives breathing room to MSMEs. - Margin relaxation
MSME just need to meet 25% of the project cost and rest can be availed as loan from bank - Primary security
The project assets act as security for the loan, it reduced dependency on other assets - Interest subsidy
If you provide extra collateral is for the loan, you will get reduced interest rate
Financial Assistance Under the Scheme
Component | Assistance |
Project | Provides term loans to fund both new and existing projects |
Collateral Free Loan | Provides collateral free loan up to Rs 5 crore under CGTMSE |
Repayment Period | Up to 10 years (including 2-year moratorium) |
Interest Subsidy | If additional collateral provided then interest will be reduced |
Capital Subsidy | Additional can also avail 15% capital subsidy under CLCSS |
Eligibility for the Scheme
You are eligible if:
- You are MSME registered under Udyam
- You are startup or business dealing in manufacturing, services or trading
- You meet statutory & regulatory requirements (GST/IT returns)
You are not eligible if:
- You have poor credit and performance rating
- You are not registered MSME under Udyam
Documents Required for the Scheme
- Aadhaar/PAN & Bank details
- Quotation/estimates for machinery/project expenditure
Application Process for the Scheme
You can apply:
- Offline at any Bank of Maharashtra branch
Examples of Where The Scheme Can Be Used
- Kavita wants to expand her garment unit in Pune. She gets a ₹70 lakh collateral-free term loan under the scheme to buy new automatic sewing machines.
- Raj from Manmad applies for ₹25 lakh to build a new IT services office and purchase servers. He qualifies under CGTMSE, so no collateral is required.
- Musa runs a successful grocery in Nashik, seeking ₹12 lakh for a second outlet. He uses the scheme for shop setup and inventory, with flexible repayment over 7 years.
