Bank finance under PMEGP scheme
(This article clarifies on who is eligible ( the age, limit, qualification) including quantum of subsidy, bank loan and money to be bought up by the entrepreneur to start up a business for bank finance under PMEGP scheme.) Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh…
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CLCSS subsidy scheme for micro and small enterprises
The Ministry of Micro, Small and Medium Enterprises is operating a scheme namely “Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small Enterprises. If you are a MSE (Micro & Small Enterprise) manufacturer and if you want to modernize your equipment/plant/machineries, you may get capital subsidy of up to Rs.15 lakh…
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Loan Documentation – concise, ready-to-use Bank Staff Checklist
(To be verified before disbursement and safe custody) — A. Sanction & Acceptance ☐ Sanction terms communicated to borrower in writing ☐ Written acceptance obtained from borrower ☐ Written acceptance obtained from guarantor (where applicable) ☐ Sanction letter and acceptance kept on record — B. Stamp Duty & Stamping ☐ Document stamped before or at…
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Perfecting Loan Documentation: A Practical Compliance Checklist for Bankers
This article is to equip bank staff with a practical, compliance-oriented understanding of loan documentation, ensuring creation of legally valid, enforceable, and error-free loan documents. 1. What is Loan Documentation? Loan documentation refers to the systematic process of obtaining, executing, and preserving documents strictly in accordance with sanction terms, applicable laws, and regulatory requirements. Proper…
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What is CGTMSE Credit guarantee scheme?
In view of enhancement in CGTMSE coverage up to Rs.2 crore from the earlier limit of Rs.1 crore, the Indian Banks Association (IBA) has formulated a common MSME loan application for adaption of all member bank of IBA. Scheduled Commercial Banks, Regional Rural Banks, and select Financial Institutions who are member institutions of CGTMSE extend…
RBI Overhauls CC, CA, and OD Directions
RBI has issued Amendment Directions on December 11, 2025 that overhaul the framework for opening and maintaining cash credit (CC), current accounts (CA) and overdraft (OD) accounts, notably freeing CC facilities from earlier operational restrictions and rationalising current/OD discipline around a ₹10 crore banking-system exposure threshold with a 10% lender-share rule. These amendments will apply…
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