Mahabank Trade, Services & MSE Finance Scheme
The Mahabank Trade, Services & MSE Finance Scheme is a credit scheme run by Bank of Maharashtra (Mahabank). It is part of the bank’s MSME / MSE‐oriented financing portfolio. This scheme provides finance to micro, small and medium enterprises engaged in trade, services, and allied sectors. Under the scheme, assistance is available in the form of term loans, cash credit, or a combination, along with non-funded facilities (letters of credit, bank guarantees). According to the bank’s published “MSME Schemes” page, the finance assistance under this scheme can go up to ₹3.00 crore. Its objective is to support enterprises in trade and services to expand business operations, meet working capital needs, and fund capital expenditures in a structured manner, under acceptable security and margin norms.
Key Features
- Loan / Credit Facilities: Some businesses need capital expenditure (machinery, fit-out, expansion) while others need day-to-day working capital. This scheme covers both via term loan and cash credit, and also supports trade finance (Letter of Credit / Bank Guarantee) which is especially useful for trading and import/export operations.
- Loan Limit (₹3.00 crore): This is a relatively high ceiling, allowing medium enterprises (or large trade/service operations) to access significant funds under one scheme.
- Security / Collateral: Mortgage of immovable property is required as security. This means you must offer land or building as collateral.
- Margin / Down Payment (40%): The borrower must bring in 40% margin (or equity) on the latest valuation of the property being mortgaged. This ensures that the bank has a buffer.
- Repayment / Tenure: The up-to 7 year tenure gives flexibility to structure repayments, and the moratorium (deferred period) eases the initial cash flow burden.
- Combination of Facilities: If your business needs both fixed assets financing and working capital support, you can combine term and cash credit under this scheme rather than applying in separate schemes.
Financial Assistance
Eligibility Criteria
Who can apply:
- The applicant must be an MSE / MSME operating in trade, services, or allied sectors
- The scheme specifically demands security via mortgage of immovable property, and margin 40%.
Documents Required
- Business identity proof (PAN, incorporation / registration documents)
- Bank & Audited financial statements (last 2–3 years)
- Income tax returns of promoters / business
- Project plan / cost estimates (if term loan)
- Property documents (title deed, valuation, survey, etc.) for mortgage security
- Other statutory registrations (GST, MSME / Udyog / Udyam registration)
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: Through Bank of Maharashtra (Branch / Portal)
- Visit the Bank of Maharashtra’s website and go to the MSME schemes section.
- Select “Mahabank Trade, Services & MSE Finance Scheme.”
- Fill the application form (business details, cost plan, finance requirements).
- Submit required documents (identity, financial statements, property papers for mortgage, etc.).
- Bank conducts appraisal, valuation of property, assessment of viability.
- On approval, sanction letter is issued. Disbursement begins as per project plan or working capital need.
Power Combos with The Scheme
Related Schemes
Frequently asked questions
What is the Mahabank Trade, Services & MSE Finance Scheme?
The Mahabank Trade, Services & MSE Finance Scheme is a business loan offering by Bank of Maharashtra designed to provide working capital and term loans to MSMEs engaged in trade, services, and manufacturing activities.
Who is eligible for the Mahabank MSE Finance Scheme?
Micro, Small, and Medium Enterprises involved in trading, service businesses, and small manufacturing units with valid registrations and financial records are eligible to apply.
What types of loans are offered under this scheme?
The scheme provides working capital loans, term loans for business expansion, equipment financing, and other credit facilities tailored to MSME needs.
What is the loan amount available under this scheme?
Loan amounts vary based on business requirements, financial strength, and repayment capacity, typically covering both small and medium-scale funding needs.
Can startups apply under this scheme?
Yes, startups classified as MSMEs with viable business models and proper documentation can apply, subject to bank evaluation.