/ Annexure

Refinance Scheme for Micro and Small Enterprises Sector (RMSE-V)

Introduction

Objective of scheme

Eligible Institutions

Extent of refinance and
eligible activities

Eligible borrowers

Period of refinance

Prepayment of refinance

Rate of interest on
refinance

Lending rate to ultimate

, , ,

SIDBI, as the apex bank for the micro, small and medium
Enterprises (MSMEs), would operate a refinance scheme to
facilitate increased flow of credit exclusively to the micro and
small enterprises.
,

The overall objective of the scheme is to support the micro and
small enterprises by facilitating flow of credit to the sector at
reasonable rates.

Public Sector Banks
01 , 2013 , 100%,
-
100% of the actual disbursements to micro and small enterprises
after April 01, 2013 subject to counter party exposure limit fixed
for this dispensation.
: 2()
Eligible activities : As defined in section 2(h) of SIDBI Act.
, , 2006

The borrowing units shall satisfy the definition of micro & small
enterprises as per Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006.

Not exceeding three years from the date of first disbursement.
:,
, , ()
/ :
PLIs will not, in the normal course, be allowed to prepay the
refinance except in those cases where the ultimate borrower(s)
has / have prepaid / fully closed the account.
6.47% ( )

The interest rate under the scheme has been fixed at 6.47% p.a.
(presently) for a maximum period of three years.
,

The interest rate charged by banks to the ultimate borrowers

shall not be more than the base rate of respective banks.

borrowers by refinanced
banks

Security for Refinance

Other terms and conditions

As per extant provisions of the general agreement under
refinance.
(i) ,

The individual proposals shall conform to the policies, procedures
and guidelines laid down under the refinance scheme of SIDBI.
(ii)
, - ,
,



The bank shall confirm that the statement given to SIDBI
indicating the list of its borrowers under the scheme does not
contain the Bank's Non Performing Assets (NPA), Fraud accounts
and those accounts wherein the borrower has already defaulted
in making payment of interest or principal to the bank and the
default continues and that the bank has not availed financial
support, whatsoever nature, from any institution, including
refinance support from SIDBI, in respect of those borrower
accounts.
(iii) , , ,
,
The bank shall provide all the information like average amount of
loan, interest rate charged, processing fee charged, etc. as and
when called by SIDBI.

Annexure
Refinance Scheme for Micro and Small Enterprises Sector (RMSE-V)
Introduction

Objective of scheme

Eligible Institutions
Extent of refinance and
eligible activities

Eligible borrowers

Period of refinance
Prepayment of refinance

Rate of interest on
refinance
Lending rate to ultimate
borrowers by refinanced
banks
Security for Refinance
Other terms and conditions

SIDBI, as the apex bank for the micro, small and medium
Enterprises (MSMEs), would operate a refinance scheme to
facilitate increased flow of credit exclusively to the micro and
small enterprises.
The overall objective of the scheme is to support the micro and
small enterprises by facilitating flow of credit to the sector at
reasonable rates.
Private Sector Banks
100% of the actual disbursements to micro and small enterprises
after April 01, 2013 subject to counter party exposure limit fixed
for this dispensation and 25% of the allocation fund under the
scheme.
Eligible activities: As defined in section 2(h) of SIDBI Act.
The borrowing units shall satisfy the definition of micro & small
enterprises as per Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006.
Not exceeding three years from the date of first disbursement.
PLIs will not, in the normal course, be allowed to prepay the
refinance except in those cases where the ultimate borrower(s)
has / have prepaid / fully closed the account.
The interest rate under the scheme has been fixed at 6.47% p.a.
(presently) for a maximum period of three years.
The interest rate charged by banks to the ultimate borrowers
shall not be more than the base rate of respective banks.
As per extant provisions of the general agreement under
refinance.
(i) The individual proposals shall conform to the policies,
procedures and guidelines laid down under the refinance scheme
of SIDBI.
(ii) The bank shall confirm that the statement given to SIDBI
indicating the list of its borrowers under the scheme does not
contain the Bank's Non Performing Assets (NPA), Fraud accounts
and those accounts wherein the borrower has already defaulted
in making payment of interest or principal to the bank and the
default continues and that the bank has not availed financial
support, whatsoever nature, from any institution, including
refinance support from SIDBI, in respect of those borrower
accounts.
(iii) The bank shall provide all the information like average
amount of loan, interest rate charged, processing fee charged,
etc. as and when called by SIDBI.