Purpose

 To meet the working capital requirements of Micro & Small Enterprises [Both Manufacturing & Services] 

Eligibility

 All existing customers of the above categories, enjoying credit limits upto Rs.10.00 lacs whose accounts with the Bank are conducted satisfactorily at least for a period of one year. 

 Facility

 Cash Credit 

Quantum of Finance 

 Rs. 10.00 lacs.

 Margin

A 25% margin may be stipulated for credit facilities covered under LUCC Scheme 

Security

 Primary Security:  Hypothecation of stock in trade, receivables, machinery, office equipment etc., as specified for existing limits.

 Collateral Security:  Upto Rs. 5.00 lakhs – No collateral Security is required

To be covered under Credit Guarantee Scheme of CGTMSE if the unit is eligible for coverage. 

Above Rs.5.00 lacs

For Manufacturing units – 40% of the limit.

For Services – 75% of limit. 

However, eligible borrowers may be covered under Credit Guarantee Scheme of CGTMSE upto Rs.10.00 lacs in lieu of collateral security at the discretion of the sanctioning authority.