BANGALORE, INDIA: Oriental Bank Of Commerce has taken great initiatives to support the MSMEs in India. It has established regional MSME centers across the nation to aid MSME operations. The bank provides several loans to encourage the growth and development of SMEs.

Below are the two major offerings to the SME sector by the bank

1. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):

The eligible loan limit under this scheme is now Rs. 100 lakh. The credit guarantee cover has been raised from 75 per cent to 85 per cent for the following category of loans:

Loans to Micro enterprises upto Rs. 5 lakh and Loans to Micro and Small enterprises operated and/ or owned by women.

Size of the limit of the SME account for determining the rate:

The revised rate of interest on SME accounts is based on the size of limits sanctioned to the borrower. The limits to be taken into account shall be as follows:

a) Non-fund based limits, sanctioned to the SME borrower, shall not be included in the total limits for determining the rate of interest.

b) All fund-based limits including term loans and working capital limits shall be taken into account for determining the rate of interest.

c) In the case of term loans, the original term loan limit is to be taken into account and not the outstanding in the term loan.

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Debt Restructuring Scheme (DRS) SMEs):

The objective of the DRS is to ensure timely and transparent mechanism for restructuring the debts of potentially viable entities facing problems for the benefit of all concerned.

Eligibility criteria: As per RBI guidelines, the debt restructuring guidelines shall be applicable for SMEs to the following entities, which are viable or potentially viable:

   1. All non-corporate SMEs, irrespective of the level of dues to banks
   2. All corporate SMEs which are enjoying banking facilities from a single bank, irrespective of the level of dues to the bank
   3. All corporate SMEs, which have funded and non-funded outstanding upto Rs. 10 crore under multiple/consortium banking arrangement.

For more information on SME Loans by Oriental Bank of Commerce visit www.ocbindia.co.in