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Composite Loan

Ministry of Micro, Small and Medium Entreprises

    The Scheme envisages sanction and disbursement of working capital and term loan together from a single agency. The limit for composite loans has been enhanced to Rs. 25 lakhs in the Comprehensive Policy Package.

    The Scheme is operated both by banks and financial institutions. State Financial Corporations under Single Window Scheme provide working capital loan along with term loan to new tiny and small scale sector units so as to overcome the  initial difficulties and delays faced by them to start production expeditiously.

Scheme Benefits & Highlights
  • Rate of Interest : (Effective)


During construction period
Remaining period implementation/  of term loan
a) For new units in backward area 12.5% 13.5%
b)For units in non-backward area 13.5% 14.5%
a) All loans upto  Rs 2 lakhs 15%  
b) All loans exceeding Rs 2 lakhs 16.5%  


    Working Capital Component 
    - Not exceeding 10 years (including moratorium upto 13 years)

    Term Loan Component 
    - Not exceeding 8 1/2 years (including moratorium of 18 months) 

Terms and Conditions


    - Working Capital loan should be availed within one year from the date of commencement of production.

    - The unit should open a current account with a designated bank and the amount of working capital of the loan will be credited as and when disbursed by the Corporation.

    - The unit should  route its entire transaction of the  business including all the receipts and payments through this account only.

    - The unit should repay the entire working capital loan sanctioned by the Corporation at once in case the unit approached the bank for more working capital.

    - The unit should provide monthly stock statement showing the position of inventory level of the Corporation. If they fail to provide the same, the Corporation may recall the loan.

    - All other terms and conditions would be applicable as per details given in the General Folder of the Corporation.

Sh. Ram Mohan Mishra

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