This primer was shared by Vipul Thaker (CEO, Haribhakti) as a part of the TiE Investor Forum series on raising Debt Capital for Growth.

1.
Prime
Vario
After Pr
Industry
for bank
for fulfi
Today t
Foreign
who are
and Med
Funding
are liste
F
er on D
ous Deb
rivatisation
y and prese
ks and for c
lling fundin
here are d
Banks, Co
e funding to
dium Enterp
options of
ed below.
Fund Base
1. Work
2. Term
3. Facto
4. Speci
selec
5. Expor
Debt Fun
t Fundi
n of Nation
ence of For
consumer it
ng requirem
different ty
-operative
o different
prise, Cotta
fered by di
ing Capital
Loan
oring
al Funding
ted Banks)
rters Loan.
nding
ing Opt
nalised Ban
reign Banks
t has given
ments.
ypes of ban
Banks, Sch
t categories
age Industr
ifferent typ
& Overdra
g Options
tions Pr
nks, emerg
s in India,
a competit
nks such as
hedule Ban
s and secto
ry, Agricult
pes of Bank
aft.
for Smal
rovided
gence of p
has increa
tive option
s Nationalis
nks, Nonban
ors such as
ural sector
ks to differe
ll Medium
d By Ban
private sec
ased the ar
s to choose
sed Banks,
nking finan
s Corporate
r, Individua
ent categor
Enterpris
nks
ctor in Ban
reas of Fun
e a right ba
Private Ba
nce Compa
es, Micro, S
ls.
ries and sec
e (With s
nking
nding
anker
anks,
nies,
Small
ctors
some

2.
N
Brief d
1. Wo
These a
like the
expense
chains,
against
of main
subjecte
other st
6. Agric
7. Proje
8. Busin
Non Fund B
1. Bank
2. Lette
3. Colle
descript
orking Ca
re the mos
e purchase
es, financin
funding p
collaterals
ntenance o
ed to perio
atements a
ulture loan
ect Finance
ess Loans.
Base
Guarantee
ers of Credi
ction of Bil
tion of F
apital & O
st popular
e of raw m
ng invento
production
. Companie
of proper
odical mon
and also thr
n.
s
es.
ts
lls on behal
Fund Bas
Overdraft:
financing o
material, p
ories, mana
and mark
es who borr
accounts
nitoring th
rough analy
lf of Custom
se Optio
:-
option. It is
payment o
aging inte
keting oper
row from b
and regula
rough a re
ysis of cash
mers.
ons:
s meant to
of wages a
rnal cash-
rations. Mo
banks are s
ar repayme
eporting st
h flows rout
o meet the
and other
flows, sup
ost banks
ubjected to
ents of lo
tructure of
ted through
working n
administra
pporting su
provide t
o the discip
oans. They
f financial
h the banks
eeds
ative
upply
these
pline
are
and
s.

3.
2. Te
Term loa
which m
may var
asset-ba
instituti
of cash-
to study
3. Fa
A financ
to a thi
financin
Factorin
business
In facto
generate
invoice
percent
forward
In India
erm Loan:
ans are ma
may vary fr
ry dependi
acked or c
ons seek a
flow backe
y its cash-fl
ctoring
cing metho
rd-party fu
ng, factorin
ng is very c
s cycle.
oring, the
es an invoi
by agreeing
. The facto
s the rema
some sele
:-
ainly funded
rom three t
ing upon t
ash-flow b
ssets of th
ed loans, ba
ow capabil
d in which
unding sour
ng is the c
ommon in
client (yo
ce. The fac
g to pay yo
or pays 75 p
inder (less
ected banks
d for Capex
to ten year
he risk pro
backed. In
e company
anks carefu
lity.
a business
rce to rais
cash-manag
certain ind
u) makes
ctor (the fu
ou the invoi
percent to
the discou
s or their N
x (Procure a
rs. The am
ofile of th
the case o
y as collate
ully scrutini
s owner sel
e capital O
gement to
dustries, wh
a sale, de
unding sour
ice's face v
80 percen
nt) when y
NBFCs offe
assets). Th
mount, the
he company
of asset-ba
erals while
ize the bal
lls accounts
One of the
ool of choi
here long re
elivers the
rce) buys th
value less a
t of the fac
your custom
er these pro
ese loans a
tenure and
y. Term lo
acked term
issuing loa
ance sheet
s receivabl
oldest for
ice for ma
eceivables
e product
he right to
a discount--
ce value im
mer pays
oducts the
are term ba
d interest r
oans are ei
m loans, le
ans. In the
ts of a com
e at a disc
rms of busi
any compa
are part of
or service
collect on
-typically 2
mmediately
ese days.
ased,
rates
ither
ender
case
pany
count
iness
nies.
f the
and
that
to 6
y and

4.
4. Sp
After in
Commiss
up with
Medium
1) A
To mee
includin
Nursing
diagnost
office
requirem
All enti
Partners
medical
150/- cr
Note:-T
science
experie
2) V
To mee
construc
ecial Fun
ncorporatio
sioner of M
some spec
Enterprise
Arogyadha
et the fina
g Patholog
Home/ H
tic equipm
furniture,
ments.
ities, i.e.
ship firms,
/pathologic
rores.
The Promot
from a re
ence
Vidyastali
et the fina
ction of bu
nding Opt
on of MSM
Micro, Smal
cial fundin
e .The brief
m Loan :-
ncial requi
gical Labor
Hospital inc
ents as al
Purchase
MSMEs, E
, Private
cal diagnos
ters should
ecognized
Loan:-
ncial requi
uilding, pu
tions for S
MED Act
ll & Medium
g options w
f descriptio
irements f
ratory, Exp
cluding Pa
so office e
of ambu
Enterprises
Limited C
stic service
d have req
University
irements f
urchase of
Small Med
2006 whic
m Enterpris
which suits
on of the pr
for setting
pansion/re
athological
equipments
ulance etc
other tha
Companies
es to the S
quisite qua
y and shou
for setting
equipment
dium Ente
ch is mon
se some s
s for the p
roducts are
up of new
novation/m
Laborator
s, viz. com
c and to
an individ
and Trust
Society and
lification i
ld have m
up the in
t etc. for
erprise (S
nitored by
elected ba
purpose of
e as below.
w Nursing
modernizati
ry, Purcha
mputers, ai
meet w
uals like
ts engaged
d with tur
in any bran
minimum 2
stitutions
the new
SME)
y Developm
anks have c
Micro, Sma
Home/Hos
ion of exi
ase of med
ir condition
working ca
Proprietors
d in provi
rnover upto
nch of med
years of w
which incl
set up as
ment
come
all &
spital
sting
dical
ners,
apital
ship,
iding
o Rs.
dical
work
ludes
also

5.
renovati
training
Educatio
educatio
3) T
In
Loans un
as per g
nodal ag
by the b
To prov
gradatio
interest
charged
technolo
guidelin
Linked C
interest
technica
etc. The
equipme
handloo
ion of the
to the stud
onal instit
on activitie
Technology
ndustries:
nder Techn
guidelines
gency for d
bank under
vide encour
on and to
reimburse
by the ba
ogy up-gra
es of the s
Capital Sub
reimburse
al textiles m
e scheme a
ents for th
ms and tes
existing fa
dents.
tutions, Sc
es
y Upgrada
-
nology Up-g
received f
etermining
the schem
ragement t
modernize
ement (4 p
nk on the
adation/mo
scheme wo
bsidy for Sm
ement plus
machinery,
also provide
e pre-loom
sting and qu
cilities, pu
chools, Co
ation Fun
gradation F
from time
g eligibility
e.
to textile
e their pro
percentage
loans avail
dernization
uld also be
mall Scale
10% capita
, garmentin
es 25% capi
m and post-
uality contr
urchase of i
lleges and
nd Scheme
Fund Schem
to time fr
and releas
industrial
duction fa
for spinni
ed by the
n. New un
e eligible fo
Sector and
al subsidy
ng machine
ital subsidy
-loom oper
rol equipme
instrument
d other ed
e (TUFS)
me launche
rom Ministr
sing of subs
units for t
cilities. T
ng industry
units from
nits set up
or the abov
d 20% for P
for specifi
ery and for
y on purcha
rations, ha
ents for ha
ts for impa
ducation b
For Text
d by Gover
ry of Texti
sidy for the
taking up
The scheme
y) of the n
the bank f
p with tech
ve benefit,
Power-loom
ed process
CAD, CAM,
ase of new
ndlooms/u
ndloom pro
rting educa
bodies run
tile And J
rnment of
iles. Banks
cases fina
technology
e envisage
normal inte
for underta
hnology as
or, 15% C
m Sector, or
sing machin
, Design Stu
machinery
p-gradation
oduction un
ation
nning
Jute
India
s are
nced
y up-
es 5%
erest
aking
s per
redit
r, 5%
nery,
udio,
y and
ns of
nits

6.
4) C
Credit L
Technol
Banks ar
To faci
products
inductio
products
manufac
auto pa
measuri
tyres; h
(includin
5) C
Granted
Enterpri
units an
sector) E
6) C
F
To prov
defined
All Micr
Sector -
Credit Link
Linked Capi
ogy Upgrad
re the Noda
ilitate Tec
s/sub-secto
on of prove
s including
cturing); In
arts and co
ng; glass a
and tools;
ng Marble M
Composite
d for Fixed
ises (Manuf
nd Micro E
Enterprise
Collateral
Fund Trust
ide collate
under MSM
o and Sma
as defined
ked Capita
ital Subsidy
dation of T
al Agencies
chnology U
ors as notif
n technolog
g footwear
nformation
omponents;
and ceram
bicycle pa
Mining Indu
Loans
capital in
facturing S
Enterprises
engaged in
Free Loa
t For Micr
eral free lo
MED Act, 20
all Enterpri
d under MSM
al Subsidy
y Scheme l
Tiny and SS
s appointed
Upgradation
fied by Gov
gies approv
r and garm
and Techn
; electronic
ic items in
arts; found
ustry).
nvestment
Sector) inc
in Small
n industrial
ns Under
o And Sma
ans upto R
006.
ses - both
MED Act, 20
y Scheme (
launched b
SI units in t
d by Govern
n of Tiny
vt. of India
ved under t
ments; foo
nology (Har
c industry
ncluding ti
ries ferrou
and / or w
luding arti
Enterprises
activity
Guarante
all Enterp
Rs. 100/- la
in Manufa
006.
(CLCSS) Fo
by Governm
the specifie
nment of In
y and SSI
by providi
the scheme
od process
rdware); dr
particular
les, dyes a
us and cast
working ca
sans, villag
s Sector, a
ee Scheme
prises
acs to Micr
cturing Sec
or SSI Unit
ment of Ind
ed product
ndia.
units in
ng 15% cap
e, viz. leath
sing (includ
rugs and ph
ly relating
and interm
t iron; and
apital requ
ge and cot
and micro
e Of Cred
ro & Small
ctor as we
ts
dia to facili
ts/ sub-sec
the spec
pital subsidy
her and lea
ding ice-cr
harmaceuti
to design
mediaries, t
stone indu
irement. S
ttage indus
/small (ser
dit Guaran
Enterprise
ll as in Ser
itate
tors.
cified
y for
ather
ream
cals;
and
toys;
ustry
Small
strial
rvice
ntee
s, as
rvice

7.
7) S
To mee
requirem
Micro, S
with an
Criteria
should b
and pro
dealings
8) S
To augm
ratio an
availabl
instituti
Micro, S
with ann
:-Satisfa
be avail
Liability
perform
not be
dealings
ME Short
t temporar
ments only.
Small & Me
nual sales
a: Satisfacto
be availabl
ofits. Nega
s with the B
ME Mediu
ment enter
nd also for
e for rep
ons, but no
Small & Me
nual sales t
actory cred
lable. Tota
y and equ
mance in ter
more tha
s with the B
Term Loa
ry shortfall
.
dium Enter
turnover
ory credit
le. Satisfac
tive varian
Bank for at
m Term L
prise’s wor
meeting g
payment o
ot for any p
dium Enter
turnover of
dit rating fo
l Debt-equ
uity ratio
rms of Sale
n 10%.Ave
Bank for at
ans
l / mismat
rprises as p
of Rs. 1/-
rating for t
ctory financ
nce, if any
least three
Loans
rking capit
genuine bu
of secured
purpose, wh
rprises as p
f Rs. 1/- cr
or the last
ity ratio sh
should no
es/turnover
rage DSCR
least Thre
tch in liqui
per Regulat
- crore to
the last th
cial perfor
y, should n
e years.
al gap and
usiness requ
and unse
hich is not
per Regulat
rore to Rs.
three yea
hould not b
ot be mo
r and profit
R should n
e Years
idity, for m
tory definit
Rs. 150/-
ree years L
mance in t
not be mo
to help in
uirements.
ecured Lo
related to
tory definit
150/- cror
ars Latest B
be higher t
ore than 3
ts. Negativ
ot be less
meeting ge
tion and al
crores. O
Latest Bala
terms of sa
ore than 1
n improvem
The facili
oans of ot
the enterp
tion and al
res. Other E
Balance She
than 4.5:1
3:1.Satisfac
ve variance
s than 1.7
enuine busi
l other ent
ther Eligib
ance Sheet
ales / turn
0%.Satisfac
ment of cur
ity will als
ther banks
prises activi
l other ent
Eligible Cri
eet etc. sh
and total T
ctory fina
, if any, sh
75:1Satisfac
iness
tities
bility
etc.
nover
ctory
rrent
o be
s or
ity.
tities
teria
hould
Term
ncial
hould
ctory

8.
9) S
To prov
requirem
paymen
SME Gol
bank fin
Regulato
crore to
Capital
Standard
working
arrangem
10)
Financin
enhance
SME uni
Bank of
11)
To pro
requirem
ME Gold C
vide hassle
ments and
t by buyers
ld Card env
nance for
ory definiti
o Rs. 150/
limits to m
d Category
capital li
ment with
Sche
ng SMEs fo
ement of en
ts financed
Baroda.
Over
vide hass
ments/augm
Card
free on th
tie up te
s, tax paym
visages pro
Working C
ion and all
/- crores,
meet emerg
y for last 2
mits of Rs
our bank/p
eme for Fi
or acquisiti
nergy effici
d by bank
rdraft Aga
le free c
ment long t
he spot ass
emporary m
ment, execu
ovision of a
Capital to
l other ent
on request
gent requir
2 years, wit
s. 25/- Lak
proposed to
nancing E
on of equ
iency/cons
as also oth
inst Land
credit to
term margi
sistance to
mismatch
ution of bul
additional l
Micro, Sm
terprises w
t along wi
rements. O
th credit r
khs and ab
o be finance
Energy Effi
ipments, s
ervation of
her units d
and Build
SME borr
n requirem
o take care
in liquidity
lk orders, e
limit of 10%
mall & Me
ith annual
ith regular
Other Eligib
rating of -4
bove. Acco
ed under So
iciency Pr
services an
f energy.
desirous of
ding
rowers to
ments.
e of borrow
y arising o
etc.
% of the as
edium Ente
sales turn
r applicatio
ble Criteria
4 and abov
unts havin
ole Banking
rojects
nd adopting
shifting th
meet w
wers’ emer
out of del
ssessed elig
erprises as
over of Rs
on for Wor
a:- Accoun
ve and enjo
g sole ban
g arrangem
g measures
heir accoun
working ca
rgent
ayed
gible
per
. 1/-
rking
ts in
oying
nking
ment.
s for
nt to
apital

9.
All Ente
2006, an
exclusiv
arrangem
12)
To provi
also lon
cash flo
spurt in
All Ente
2006, an
exclusiv
arrangem
13)
K
To finan
Instituti
Village I
erprises, i.e
nd other en
vely bankin
ment with
SME
ide hassle
g term req
ow project
the busine
erprises, i.e
nd other en
vely bankin
ment with
Loan
Khadi & Vi
nce institut
onal financ
ndustries B
e. Micro, Sm
ntities with
ng with ou
our bank.
Loan Pack
free credit
quirements,
ions, peak
ess.
e. Micro, Sm
ntities with
ng with ou
our bank.
ns Under
llage Indu
tional finan
cing agenci
Boards, Reg
mall & Med
annual sal
r bank/new
k
t for workin
, taking int
k time requ
mall & Med
annual sal
r bank/new
Interest S
ustries Com
ncing agen
es – Khadi
gistered Ins
dium Enterp
les turnove
w borrowe
ng capital
to account
uirements
dium Enterp
les turnove
w borrowe
Subsidy E
mmission
cies for le
& Village In
stitutions, C
prises, as d
er of Rs. 1/-
ers desirou
(fund base
nature of
and any e
prises, as d
er of Rs. 1/-
ers desirou
Eligibility
(KVIC-ISEC
nding to K
ndustries C
Co-operativ
defined und
- crore to R
s of havin
ed and non-
business, c
eventuality
defined und
- crore to R
s of havin
Certificat
C)
hadi & Vill
Commission
ve Societies
der MSMED
Rs. 150/- cr
g sole ban
-fund based
cyclical tre
of unfore
der MSMED
Rs. 150/- cr
g sole ban
te Scheme
lage Indust
, State Kha
s
Act,
rores
nking
d) as
ends,
eseen
Act,
rores
nking
e of
tries,
adi &

10.
14)
a
b
S
Dealer/D
would b
weighta
shall tak
15)
For acqu
Saving o
loan. Un
issued b
etc. or m
16)
To meet
Small e
rehabilit
tiny and
include
satisfyin
STAR
. Drawee B
. Drawee B
ponsoring
Distributor
be extende
ge shall be
ke a decisio
Ener
uiring/adop
on energy c
nits should
by energy c
must have c
Natio
t gap in pre
ntrepreneu
tation of p
d small sca
all industr
ng the inv
R CHANNE
Bill Finance
Bill Finance
Corporate
of goods r
d based on
e given to
on based on
rgy Efficie
pting Energ
costs should
possess en
consultant/
carried out
onal Equit
escribed mi
urs for set
otentially v
ale industri
rial units a
vestment
L CREDIT
for Supplie
e or Overdra
e can be
rated ‘AA’
n the refer
the recom
n merits in
ncy Proje
gy Saving Eq
d be at lea
nergy audit
auditor acc
t similar ass
ty Fund
inimum pro
ting up ne
viable sick
ial units an
nd service
ceiling pr
ers
aft facility
e a Manu
and above
rral of the
mmendation
each case.
ects
quipment a
ast 150% of
t report (to
credited by
signment fo
omoters' co
ew project
SSI units i
nd service
industries
rescribed
for Deale
ufacturing
e. Facilities
e Sponsorin
n of the Sp
.
and Energy
cost of ser
o be obtain
y Bureau o
or other re
ntribution
ts in tiny /
rrespective
enterprise
(except R
for tiny
ers
Unit, or
s to Supplie
g Corporat
ponsoring C
Conservati
rvicing the
ned at thei
f Energy Ef
puted com
and/or in e
/ small sc
e of the loc
es [tiny ent
Road Transp
enterprises
a Whole
ers and Dea
te. Though
Corporate,
on Measure
proposed t
ir cost initi
fficiency, P
panies.
equity
ale sector
cation. Exi
terprises w
port Opera
s] underta
esale
alers
due
Bank
es.
term
ially)
PCRA
and
sting
would
tors)
aking

11.
expansio
consider
17)
Akshay
Energy D
Urja Sho
Renewa
through
operatio
Private
opening
Nodal A
format.
MNRE/S
18)
For econ
fixtures
activitie
Women
than 51%
on, modern
red irrespe
Aksh
Urja Shops
Devices an
ops would
ble Energy
banks an
on.
Entreprene
AUSs. The
Agency (SN
Incentives
NA.
Priya
nomic activ
etc. for ca
es iii) Educa
entreprene
% of the fin
nization, t
ctive of the
hya Urja Sh
s are reta
d Systems
cover all
y (MNRE) w
nd monthly
eurs, Reput
e applican
A) and sub
s would be
adarshini Y
vities like i
apital inves
ation Loan
eurs, wome
nancial hold
technology
e location.
hops
ail outlets
including S
the distric
will provide
y recurring
ted NGOs a
t for open
bmit propo
e available
ojana
) Purchase
stment and
en enterpri
ding
up-gradati
which wou
Solar Energ
cts of the
e support t
g grant &
and Manufa
ning a shop
osal for Ak
e only afte
of equipm
d working c
ises where
ion and di
uld sell an
gy Products
country. T
to the shop
incentive
cturer’s As
p will cont
kshay Urja
er sanction
ment, machi
capital nee
women en
versificatio
nd service
s. The netw
The Minist
ps in term
e for first
ssociations
tact the co
Shops in
of Akshay
inery, vehi
ds ii) Agric
ntrepreneur
on can also
all Renew
work of Ak
ry of New
ms of soft l
two year
are eligible
oncerned S
the prescr
y Urja Sho
cle, furnitu
culture & A
rs hold not
o be
wable
kshay
and
loans
rs of
e for
State
ribed
p by
ure /
Allied
t less

12.
19)
Any e
organiza
Solar W
size).
20)
a) Eligib
Manufac
without
would m
Scheme,
borrowe
extende
eligible
Banks to
with SID
compani
Group le
a
can be
one or
Rs.100 l
in such a
Solar
end user
ations/com
Water Heate
Aksh
ble borrow
cturing and
any colla
mean any
, the CGT
er by a Me
ed by a Ban
for Guaran
o a single b
DBI would
ies or othe
ending thro
) Both Term
covered. b
more out
lakhs) prov
account/s.
r Water He
r such
mercial org
ers with bo
hya Urja Sh
wer would
d Services)
teral secu
asset othe
TMSE enco
mber Lend
k for a unit
ntee Cover
borrower s
however b
er legally co
ough SHGs n
m Loan and
b) Where th
of the sam
vided collat
eaters
as Indi
ganizations
oth Flat P
hops
be new o
to which c
rity and/o
er than bu
ourages co
ding Institut
t already a
r under the
hall not be
be eligible
onstituted
not eligible
d Working
he borrowe
me can be
teral securi
ividuals,
s (hotels, h
late or Ev
r existing
credit faci
or third pa
siness asse
mposite c
tion of the
assisted by
e scheme.
e eligible f
for guaran
bodies, ind
e
Capital (bo
er is enjoyi
covered u
ity and 3rd
institution
ospitals etc
acuated Tu
Micro and
lity has be
arty guaran
et. b) Und
redit bein
e CGTMSE.
State/Natio
Joint fina
for guarant
ntee cover.
dividual bor
oth fund ba
ing several
upto the El
d party gua
ns, non-
c).
ubular Col
d Small En
een provide
ntees. Coll
der the Cre
g extende
However c
onal Level
ncing by tw
ee cover. J
. c). All ty
rrowers, sm
ased and n
l distinct c
ligible Amo
arantee are
comme
lectors (of
terprises (
ed by the
ateral Sec
edit Guara
ed to a si
credit facil
Institutions
wo comme
Joint Finan
ypes of firm
mall busine
non-fund ba
redit facili
ount (prese
e NOT obta
ercial
f any
(both
Bank
urity
antee
ingle
lities
s are
ercial
ncing
ms /
sses.
ased)
ities,
ently
ained

13.
5. Ex
Banks p
such as
1) P
Pre ship
• P
• C
• P
• P
• S
• M
2) P
P
shipmen
finance
3) P
p
m
c
b
xporters
rovides di
Pre-shipme
Pre shipme
pment finan
rocure Raw
Carryout ma
rovide a se
rocess & pa
hip the goo
Meet other f
Post shipm
ost Shipme
nt of good
is provided
Packing Cr
PACK
rovided by
manufacturi
redit open
uyer or a
Loan.
fferent typ
ent, Post-sh
ent
nce is sanct
w material
anufacturin
ecure wareh
ack the goo
ods to buye
financial co
ment
ent financ
s to the d
d against ev
redit.
KING CREDI
y a bank t
ing or pack
ed in his f
confirmed
pes of Loa
hipment Pa
tioned to ex
ng process
house for G
ods
er
ost of busin
ce is sanct
date of re
vidence of
T is any l
to an expo
king of goo
favor or in
and irrevo
ans to Expo
acking Cred
xporters be
Goods & Raw
ness.
tioned for
ealisation o
shipment o
loan or ad
orter for f
ods prior to
n favor of
ocable orde
orters in Lo
it.
efore shipm
w material
export sa
of Export
of goods.
vance gran
financing t
o shipment,
some othe
er for the e
ocal and Fo
ment for fol
s
ales receiv
proceeds,
nted or an
he purchas
, on the ba
er person,
export of g
oreign curr
llowing
able after
Post shipm
ny other c
se, proces
asis of lette
by an over
goods from
rency
the
ment
redit
sing,
er of
rseas
m the

14.
p
c
lo
6. Ag
Agricult
provide
Agriclin
practice
trends a
health e
Agribusi
and othe
The sch
agricultu
farming
Funding
roducing c
ountry hav
odgment of
griculture
ure sector
special fun
1) Agric
nics are env
es, technolo
and prices
etc. which
iness centr
er farm ser
heme is o
ure like ho
piscicultur
2) Cold
is provided
country or
ving been
f export ord
e loan.
in India is
nding optio
clinics & A
visaged to p
ogy dissem
of various
would enha
res are env
rvices.
open to A
orticulture,
re and othe
Storage.
d for Cold s
any other
placed on
ders or lett
s considere
ns which ar
Agribusine
provide exp
ination, cr
crops in th
ance produ
visaged to p
Agriculture
, animal h
er allied act
storage of a
r evidence
the expo
ter of credi
ed as prior
re listed be
ss
pert service
op protect
he market
uctivity of c
provide inp
Graduates
usbandry,
tivities.
agricultura
of an ord
orter or so
t with the
rity sector
elow.
es and advi
ion from p
and also cl
crops/anim
put supply,
s/Graduate
forestry, d
l products.
der for exp
me other
bank has b
for fundin
ce to farm
ests and di
linical serv
mals. Agribu
farm equi
es in subj
dairy, vete
port from
person, un
been waived
ng .Some b
ers on crop
iseases, ma
vices for an
usiness cen
pments on
ects allied
erinary, po
that
nless
d.
banks
pping
arket
nimal
tres:
hire
d to
ultry

15.
The adv
propriet
To enab
credit a
farmer a
one han
storage
farmer a
the com
fa
sh
O
in
fo
lo
fo
Financin
of small
the farm
vances ma
tary/ partn
3) Comp
ble the farm
assistance a
an opportu
nd and to
period till
a fully liqu
mposite cash
a)Ind
arming co-
hare cropp
Only farmer
n the cold
or finance
oans from t
or finance u
4) Poult
ng can be c
l poultry (la
mers and ag
ade to ind
ership conc
posite Cash
mer to unde
and increas
nity to ear
meet a pa
better pric
id savings m
h credit acc
ividual farm
operative
pers with r
rs engaged
storage /
against sto
the Bank fo
under prod
try Develop
considered f
ayer or bro
gricultural
dividuals,
cerns and j
h credit Sc
ertake imp
se farm pr
rn a fair ret
art of the
ces prevail
module by
count when
mers, regis
societies o
recorded ri
in product
warehouse
orage recei
or raising t
duce marke
pment
for the foll
oiler) units
labourers.
group of
oint sector
heme.
roved prac
roduction a
turn on sea
domestic
in the mar
allowing to
n he is cash
tered partn
owning agri
ights are e
tion of cro
e godown /
ipts. c) The
the concer
ting loan sc
lowing type
of 200 to 5
Individual
individuals
r companie
tices of cro
and produc
asonal inves
requireme
rket, on the
o earn inte
h rich.
nership firm
icultural la
eligible for
ps and pro
regulated
e farmers w
ned crop in
cheme.
es of poultr
500 birds as
registered
s, coopera
s for cold s
op producti
ctivity. b) T
stment in t
ents of the
e other. c)
erest on cre
ms, compan
and, regist
r availing c
oduce suita
market ya
who have a
n that seas
ry schemes
s subsidiary
partnershi
ative socie
storage unit
ion with Ba
To provide
the farm on
e family du
To provide
edit balanc
nies, regist
ered tenan
crop financ
able for sto
ard are elig
availed of
son are elig
. Establishm
y occupatio
ip firms lim
eties,
ts
ank’s
e the
n the
uring
e the
es in
tered
nts /
ce.b)
orage
gible
crop
gible
ment
on by
mited

16.
compani
technica
poultry
in
o
a
tr
7. Pr
The fina
based u
and equ
the proj
cash flo
seconda
8. Bu
Business
corporat
acquisit
ies and r
al personn
units.
1. Ind
n poultry
ccupation.
re eligible
rained/ tec
roject Fin
ancing of
pon a non-
uity used to
ject. Projec
ow for rep
ary security
siness Loa
s loans ar
tions, to m
ion of fixed
registered
nel and m
dividual far
manageme
2. Individu
for bank
chnically qu
ance:
long-term
recourse o
o finance th
ct financing
payment, w
y or collater
ans:
e available
meet their
d assets) to
co-operati
anagement
rmers/agric
ent are t
al registere
credit for
ualified per
infrastruc
r limited re
he project
g is a loan
with the p
ral.
e to self
r operating
owards star
ive societi
t experts
cultural lab
taking up
ed partner
large pou
rsonnel for
cture, indu
ecourse fin
are paid b
structure t
project's as
employed
g expenses
rting or exp
ies having
for runnin
bourers who
poultry f
ship firms,
ltry units.
running th
strial proj
nancial stru
ack from t
that relies
ssets, right
profession
s, finance
panding a b
necessary
ng followin
o are exper
farming as
limited co
These uni
he unit
ects and
ucture wher
he cashflow
primarily o
ts, and int
nals, firms
capital e
usiness.
y trained
ng comme
rienced/tra
s a subsid
ompanies, e
its should
public serv
re project
w generate
on the proj
terests hel
s, Traders
expenditure
and
ercial
ained
diary
etc.,
have
vices
debt
ed by
ject's
ld as
and
e (or

17.
1)
Profes
Charte
etc to
2)
Trad
eith
3)
Banks
intere
eligib
a fixe
4)
Few s
repute
real e
) Professio
ssional loan
ered Accou
o meet their
) Trade Lo
de loans ar
her open a
) Mortgage
s provide lo
est. Business
le to apply
d asset.
) Real Esta
selected ban
e. Banks en
estate for pr
onal Loan
ns are prov
ntants, Inte
r operating e
oans.
re provided
new busine
e Loans.
oan against
smen, self e
for the loan
ate Loans
nks give real
nter into Ag
roviding Rea
ns.
ided to sel
erior Decora
expense, fin
d to trader
ess or opera
mortgage
employed p
n. It enables
s.
l estate loan
greements w
l Estate Loa
lf employed
ators, Archi
ance and ca
rs/ business
ate/expand
of property
rofessionals
s the borrow
ns to builde
with Builde
ns.
d profession
itects, Com
apital expen
smen, so a
d an existin
y on an at
, salaried c
wer to apply
rs/real esta
ers/Promote
nal like Doc
mpany Secre
nditure.
as to help t
ng one.
tractive rat
customers ar
y for loan ag
ate develope
rs/Develope
ctors,
etary,
them
te of
re all
gainst
ers of
ers.of

18.
Brief d
Banks al
some of
1. B
It
th
h
2.
A
re
u
th
3.
It
c
descript
lso provide
the types
Bank Guar
t is a type o
he liability o
is customer
Letters o
A letter fro
eceived on
nable to m
he full or re
Collectio
t is a type
ustomers a
tion Non
e for Fundin
of non fund
rantees :-
of service p
of its Custom
liability .
of Credit
om a bank
n time and
make payme
emaining a
on of Bills
of service
and collects
n Fund B
ng option w
d Base activ
-
rovided by
mer, if custo
:-
guaranteei
for the co
ent on the
amount of t
s on beha
provided
s local and
Base.
where actu
vity.
Bank to Cus
omer fails to
ing that a
orrect amo
purchase,
the purchas
alf of Cust
by bank in
outstation
al funds ar
stomer whe
o pay. In ot
buyer's pay
ount. In the
the bank
se.
tomers :-
which Ban
dues.
re not evol
re banks Gu
her words
yment to a
e event tha
will be req
nks act as
ved. Below
uarantees to
bank Guaran
a seller wi
at the buy
quired to c
an agent o
w are
o Pay
ntees
ll be
yer is
cover
of its