Scenarios for Charging of fee at different Rate/Risk Premium/Concession

(5) In case the MLI fall under the category ‘Standard Rate plus Risk
Premium of 50% on Standard Rate’, What would be the fee rate for
Unit located in Aspirational District & ZED certified Unit for a
guarantee of Rs.10 lakh?

Standar Fee Rate Fee Rate with Risk Premium

d Rate after
(SR)* Discount

Slab (-10%) 15% 30% 50% 70%

0 to 10 Lacs 0.75 0.68 0.86 0.98 1.13 1.28

Above 10 to 50 lacs 1.10 0.99 1.27 1.43 1.65 1.87
Above 50 to 200 lacs 1.20 1.08 1.38 1.56 1.80 2.04
 Scenarios for Charging of fee at different Rate/Risk Premium/Concession

Applicable Fee:
Standard rate: 0.75
20% concession on SR: 0.60
Risk Premium 50% on 0.68= 0.90

Standar Fee Rate Fee Rate with Risk Premium

d Rate after
(SR)* Discount

Slab (-10%) 15% 30% 50% 70%

0 to 10 Lacs 0.75 0.68 0.86 0.98 1.13 1.28

Above 10 to 50 lacs 1.10 0.99 1.27 1.43 1.65 1.87
Above 50 to 200 lacs 1.20 1.08 1.38 1.56 1.80 2.04
 Scenarios for Charging of fee at different Rate/Risk Premium/Concession

(6) In case the MLI fall under the category ‘Standard Rate plus Risk
Premium of 50% on Standard Rate’, What would be the fee rate for
Unit located in Aspirational District, Woman Entrepreneur, SC/ST
Entrepreneur and ZED certified Unit for a guarantee of Rs.10 lakh?

Standard Fee Rate after Fee Rate with Risk Premium

Rate Discount
(SR)*

Slab (-10%) 15% 30% 50% 70%

0 to 10 Lacs 0.75 0.68 0.86 0.98 1.13 1.28

Above 10 to 50 lacs 1.10 0.99 1.27 1.43 1.65 1.87
Above 50 to 200 lacs 1.20 1.08 1.38 1.56 1.80 2.04
 Scenarios for Charging of fee at different Rate/Risk Premium/Concession

Applicable Fee:
Standard rate: 0.75
30% concession on SR: 0.525
Risk Premium 50% on 0.525= 0.7875 or say 0.79%

Standar Fee Rate Fee Rate with Risk Premium

d Rate after
(SR)* Discount

Slab (-10%) 15% 30% 50% 70%

0 to 10 Lacs 0.75 0.68 0.86 0.98 1.13 1.28

Above 10 to 50 lacs 1.10 0.99 1.27 1.43 1.65 1.87
Above 50 to 200 lacs 1.20 1.08 1.38 1.56 1.80 2.04
 AGF calculation
Online Module available between 1st Jan to 15th Jan every year.

In case of term loans, AGF would be calculated on outstanding amount as on

31st December

For working capital, AGF would be calculated on maximum (peak) working

capital limit availed during the previous calendar year

AGFwill be charged on the guaranteed amount for the first year and on the
outstanding amount for the remaining tenure of the credit facility

Credit facilities sanctioned before 1st April 2018, AGF will continue to
calculate on limit sanctioned in both the cases i.e. Term Loan & Working
Capital. Even Review with Increase in WC will be calculated on sanction limit.
 AGF calculation

In respect of partially disbursed Term Loans, the entire sanction

amount shall be considered. In case, if the MLI proposes to cancel
the undrawn portion of the sanctioned facility, MLI to update the
same in CGTMSE portal;
Process of Guarantee Application

SME Application Issuance of

CGTMSE Annual Expiry of
submitted to MLIs Guarantee
Approval Generation of Fee the coverage

 After the
 Due Diligence done
 CGTMSE Annual completion of
by the MLIs
approves Guarantee Fee the tenure the
AGF to be paid
 Application the online (AGF) is guarantee cover
within 30 days
submitted by MLI to application payable for expires
of generation
CGTMSE for submitted continuation of
of demand or the coverage
guarantee coverage by MLI, if in first
by end of next order, Then disbursement  Incase of
Risk premium
quarter from CGPAN and of loan working capital,
on guarantee
sanction date DAN are whichever is fees based on
guarantee can be
(Now Guarantee can generated later NPA levels & renewed after
be taken at any time facility wise payout ratios. expiry
during the currency
of the loan period.)
Now, MLI can apply guarantee coverage anytime during the tenure of
the Loan. Provided in last one year
• The account was not restructured or
• remained in SMA-2 from the date of application
• Eligible only fresh accounts not already registered with CGTMSE.

Provided further that, as on the material date:

(i) Credit facility is standard and regular (not SMA) as per RBI guidelines and / or
(ii)The business or activity of the borrower for which the credit facility was
granted has not ceased; and / or
(iii)The credit facility has not wholly or partly been utilized for adjustment of any
debt deemed bad or doubtful of recovery, without obtaining a prior consent in
this regard from the Trust.
© 2016 Bank of Baroda. All Rights Reserved. 38
 Revival of closed accounts
If the guaranteed account gets closed due to non-payment of AGF, the guarantee under
the scheme shall not be available and request for revival of accounts/ delayed payment
will be considered subject to the following conditions:

(i) Request for revival of account will have to be submitted within next financial year.

(ii) Account should be standard and regular as on date of submission of request for
revival and the Trust reserves the right to reject the claim if the account turns NPA
within 180 days from the date of revival of account.

(iii) Any fee due by the MLI (current and previous FY) will be demanded along with
penal interest (@ 4% over Bank Rate, per annum) and additional risk premium @15% of
standard rate or at such rates specified by the Trust from time to time, for the period of
delay

© 2017 Bank of Baroda. All Rights Reserved Page | 39

 The cap of ₹200 lakh is the maximum guarantee coverage limit per borrower
based on the outstanding credit facilities and the borrowers can avail
incremental credit facilities (i.e. to the extent of reduction in the outstanding
exposure limit)

Due-Diligence in CGTMSE Accounts

The information on total exposure of the borrower under CGTMSE and status of
the account (NPA/Standard) are made available to the MLIs at free of cost:
Path: MLI Login>> Reports & MIS>> Search History >> Enter ITPAN number of the
chief promoter of the unit.

© 2017 Bank of Baroda. All Rights Reserved Page | 40