UDYOG VIKAS LOAN SCHEME(For Priority Sector Lending)

  • Purpose

    For purchase of Fixed Assets like Shop, Gala, Factory Shed, Machinery, Furniture, Computers, Business Development/ Expansion and Working Capital Facility.


    Individual/Proprietorship Firm/Partnership Firm/LLP/Pvt. Ltd. Cos. carrying on Small Business/Rendering Specialized Services/ Manufacturing Activity

    Eligible Category

    Loans & Advances to be considered only for following categories of  Priority Sector Advances

    • Micro & Small Enterprises (MSEs) are primarily recognised on the basis of original cost of investment in Plant & Machinery in case of manufacturing sector and original cost of investment in equipments in case of   Service Sector.
    • Manufacturing Enterprises :– Original cost of investment in Plant & Machinery should not exceed Rs. 500.00 Lakh.
    • Service Enterprises :– Original cost of investment in Equipments should not exceed Rs. 200.00 Lakh. 
    • Small Road and Water Transport Operator
    • Small Businessmen
    • Enterprises engaged in providing or rendering services for selling of goods on commission basis, booking agents, clearing & forwarding agents, estate agents, photo studio/shop, service providers viz. Pest Control, Plumbing, Electrician, Contractor etc. , Hair Dressing Saloons, Photocopiers, Workshops carrying repair/maintenance jobs for Automobiles, Machinery etc., Enterprises engaged in Advertising/ Marketing/Industrial/Management Consultancy, Industrial R & D Labs, Testing Labs, Laundry & Dry Cleaners, Restaurant & Cafes, Tailoring Firms, Weigh Bridge Operators,  Business of providing Equipments on Rental/Lease basis, Desktop Publishing, Beauty Parlors, Health Spa.


    1] Term Loan eligibility:-

    • In case of loans considered on the basis of their present income:- Minimum take home Income after EMI should be 40% of net income subject to minimum of Rs. 12,000/- and maximum Rs. 20,000/-
    • In case of loans sanctioned on the basis of their projected Balance Sheet and Profit & Loss a/c.:-  DSCR should be worked out to ascertain the repayment capacity as per the Balance Sheet &  Profit & Loss a/c. for the entire period the loan would be serviced/repaid with interest.  The DSCR should be more than 1.5. 
    • Cost of project minus margin amount. 

    2] Working Capital – 20% of estimated/projected turnover


    Upto 84 EMIs including moratorium period (in exceptional cases, it can be extended upto 120 EMIs)

    Rate of Interest



    • For purchase of Shop /Gala/ Office  /Commercial premises /Factory(Registration and stamp Duty to be included in the cost) - 20 %.
    • Working Captial- 25%
    • Other Secured Term Loans- 25 %


    Regular membership for the Applicant and Co- Applicant
    Nominal Membership for Sureties for loan up to Rs. 25.00 Lakh. Regular Membership for loans above Rs.25.00 Lakh.


    One Surety with good means



    • Mortgage of Shop/Gala/factory to be purchased
    • Hypothecation of Stock and Book Debts, Plant & Machinery and Equipments


    • Term Loan for acquiring Office/Shop Premises – NIL
    • Term Loan for acquiring other assets and/or working capital limit

         a) upto Rs. 10.00 Lakh – NIL

    • Above Rs. 10.00 Lakh  upto Rs. 50.00 Lakh – 25% of the advance
    • Above Rs. 50.00 Lakh – 50% of advance

    Service Charges

    0.50% of the sanctioned amount+ GST

    Share Linkage

    Applicant - 2.5% of sanctioned amount
    Surety – Rs. 1000/- for loan upto Rs.25 Lakh & as per extent Shareholdings Norms for loan above Rs.25 lakh.


    Comprehensive insurance of all Assets hypothecated/mortgaged with Bank Clause.