Mahabank Textile Cluster Scheme
The Mahabank Textile Cluster Scheme is an MSME / textile-sector credit scheme launched and operated by Bank of Maharashtra. It is designed to support both new and existing textile enterprises located in specified textile clusters, by providing concessional credit and facilitating growth through cluster-based financing. The scheme enables access to both fund and non-fund facilities, with favourable interest rates, lower margins, and longer tenures compared to typical MSME lending. The cluster approach helps the bank tailor the scheme for textile units in focused geographies (e.g. powerloom, spinning, garment clusters). The purpose is to foster development of textile clusters by easing financial constraints for units engaged in various textile activities (spinning, weaving, printing, garmenting etc.), helping modernization, working capital, value addition, and export competitiveness.
Key Features
- Concessional RoI starting 7.50%: The scheme offers interest rates linked to RLLR (or the bank’s benchmark) with concessions, so that textile units get relatively lower interest burden compared to standard MSME rates.
- Loan quantum up to ₹100 crore: This high upper limit allows sizable textile units to access large capital for expansions, modernization or export scaling. The lower limit is 25 lakhs
- Concession in processing fee up to 60%: The scheme reduces the processing charges (application / sanction fees) to ease upfront cost burden on borrowers.
- Low margin requirements: For domestic credit, margin requirement is 20%. For export credit, pre-shipment margin may be 10%, and post-shipment may have nil margin.
- Long tenure & moratorium: Up to 10 years, including an initial moratorium of 18 months gives breathing room to newer investments to stabilize operations.
- Fund & non-fund based facilities: The scheme supports both term / working capital (funded support) and non-fund (such as Letter of credit / Bank Guarantee) facilities.
- CGTMSE coverage up to ₹5 crore: For eligible units, the scheme allows guarantee cover under CGTMSE for loans up to ₹5 crore, reducing additional collateral burden.
- Security norms: Primary security is hypothecation or mortgage of assets created or financed, receivables etc. For export credit, third party guarantee may not be required if CGTMSE cover applies.
- Reduced LC / BG commissions: For issuance of Letters of Credit (LC) or Bank Guarantees (BG), the scheme gives concessional commission rates (e.g. 50% for CMR 1 & 2, 25% for CMR 3 & 4).
Financial Assistance
Eligibility Criteria
Who can apply:
- Individuals, proprietorships, partnership firms, LLPs, private limited & limited companies classified as MSME.
- Units engaged in textile / allied activities, such as: Powerloom weaving, saree manufacturing, spinning mills, knitwear units, printing, dyeing, finishing, embroidery, textile processing, trading / manufacture of yarn, jari, fabrics, garments etc.
- Both new and existing textile units (customer relationship) are eligible.
- The scheme applies only in specified textile clusters recognized by the bank. Clusters listed include: Kolhapur Powerloom, Surat fabric cluster, Malegaon Paithani saree cluster, Coimbatore spinning, Tiruppur knitwear, Jaipur handloom, Ludhiana textile cluster.
- CMR for new or fresh borrowers needs to be in the range of CMR 1 to CMR 5
Documents Required
- Business registration / incorporation / partnership deed / LLP documents
- Udyam registration certificate
- Audited financial statements / income tax returns (last 2–3 years)
- Property documents (title deed, valuation, survey, etc., for mortgage or security)
- Equipment / machinery quotations, technical specifications
- Cluster proof / certificate or evidence that unit is located in recognized cluster
- Bank statements, receivables / payables schedule
- Other regulatory licenses / permits (factory license, pollution clearances, etc.)
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.
Option 2: Via Bank of Maharashtra Branches
- Visit the BoM website and navigate to the “Mahabank Textile Cluster Scheme” page.
- Complete the application form specifying your cluster, business activity (textile sub-segment), required facilities (working capital, term loan, LC/BG)
- Submit required documents (identity, MSME registration, cluster recognition, business / project plan, financials, quotations for machines etc.)
- Bank assesses cluster compliance, creditworthiness, valuation of security, etc.
- On approval, sanction letter is issued. Disbursement and facility setup (term loan, working capital, LC/BG) proceeds as per plan.
Power Combos with The Scheme
