Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.
About this scheme…
Union MSE Support Scheme is a collateral free loan offering by Union Bank of India (UBOI) to provide financial assistance to Micro & Small Enterprises (MSEs).
How is it being implemented?
Under this Scheme, financial assistance in the form of loans is given exclusively to,
What is on offer?
I. Product
- Term loan, Fund based & non-fund based working capital facility
- Ticket Size: ₹50 Lakhs to ₹5 Crores
- Loan under this Scheme can be availed under Sole Banking arrangement only (except for Retail loans & Commercial Vehicle loans availed from other Banks or Financial Institutions)
- Maintaining current account with another Bank is not permitted under the Scheme. However, sanctioning authority may provide timeline up to 3 months to close the current account with other Bank while sanctioning credit facilities
II. Purpose:
- Acquisition of or investment in fixed assets
- Working capital requirements
III. Borrower Type:
- Individual, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Limited
Company - Trusts, HUF & Societies are not eligible for financing under the Scheme
IV. Security or Collateral or Guarantee or Insurance
- Security: Charge on assets created out of Bank’s Term Loan under this Scheme
- Collateral: Nil
- To be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Annual Guarantee Fee + Incidental Charges + Taxes pertaining to CGTMSE to be borne by borrower
- Guarantee: Nil
- Insurance: For more information around this, please contact UBOI via means mentioned below
V. Interest Rate
- Term loan & Fund based working capital facility
- Calculated as Benchmark Rate + Spread (comprising of Credit Risk Premium (CRP) + Business Strategy Premium) + Additional tenor premium
- This may range between 11.60% to 16.70% per annum + Additional tenor premium
- For information around tenor premium, please contact UBOI via means mentioned
below
- Non-fund based working capital facility: For more information around this, please contact UBOI via means mentioned below
- For more information, check under Interest Rates for MSMEs by clicking here
VI. Processing Fee
- Term loan: 1.30%
- Fund based & non-fund based working capital facility: 0.35%
- For more information, check under Schedule of Charges & Fees for Inland Rupee Advances by clicking here
VII. Margin Money Requirement
- 25%
VIII. Tenure, Repayments & Pre-Closures
- Tenure
- Term loan: upto 84 months including moratorium of up to 12 months
- Working capital facility: on demand
- Repayments: For more information around this, please contact UBOI via means mentioned below
- Pre-payment & Foreclosure Charges
- Term loan: Pre-payment is applicable where repayment period is beyond 36 months at 2% flat charge on the amount of term loan prepaid as on the date of closure of the account
- Working capital facility: Pre-payment is not applicable
- For more information around this and other charges, check under Schedule of Charges & Fees for Inland Rupee Advances by clicking here
IX. Turnaround Time
- 7 – 12 days
- Time limit starts from the date of receipt of completed loan application
- For more information, check under Timelines for Disposal of MSME Proposals by clicking here
Interested? Read ahead to check your eligibility….
I.
Are you likely to be below 70 years of age as on date of sanction of loan under this Scheme?
OR
Is the age of Partners, Promoters or Directors holding at least 51% in Partnership firm or LLP, Company likely to be less than 70 years as on date of sanction of loan under this Scheme?
II. Is your business a Micro or Small Enterprise with a valid Udyam Registration Number?
III. Can you confirm that your business in not engaged in Speculative Activities or Real Estate Activities or Gems & Jewelers Business?
IV. Can you confirm that your business unit has all the statutory approvals, NOCs from the respective departments, regulators, authorities etc., as applicable?
V. Are you aware that the loan under this Scheme will only be provided under Sole Banking arrangement with UBOI?
VI. Does your business have a CIBIL CMR Rank? [Note for the Reader: For more information around its aplicability, please contact UBOI via means mentioned below]
If your answers to the questions above are an emphatic YES, you are all set to avail loan under Union MSE Support Scheme!
So…how big is this Scheme and what has been done so far?
I. This information does not seem to be available in the public domain
II. However, UBOI had a loan outstanding of ₹130,437 Crores lent to MSMEs as on December 31, 2024
So, now, how should you go about it?
I. For submitting application:
- Please apply under MSME Loan on the website here
OR
- Please contact your nearest Union Bank MSME First Branch, the details of which you can scroll & find here
OR
- Please contact your nearest Union Bank MSME Focussed Branch, the details of which you can scroll & find here
OR
- Please contact your nearest Union Bank’s MSME Saral Centres, the details of which you can scroll & find here
OR
- Visit one of the 8,574 UBOI branches nearest to you
II. For information on
- Application form: Click on Loans Tab >> MSME Application Form Tab >> MSME Application Form here
- Documentation Required
- For loans upto ₹2 Crores, check here
- For loans above ₹2 Crores, check here
III. For any queries, please contact UBOI via
- Toll Free Number: 1800 22 22 44 | 1800 208 2244 | 1800 425 1515 | 1800 425 3555
OR
- Tolled Number: 080 61817110
OR
OR
- Please contact your nearest Union Bank MSME Focussed Branch, the details of which you can scroll & find here
OR
- Please contact your nearest Union Bank’s MSME Saral Centres, the details of which you can scroll & find here
OR
- Visit one of the 8,574 UBOI branches nearest to you
Go on then…and do spread the word!
Sources:
1. About Union MSE Support Scheme
2. UBOI’s Annual Report 2023-24
3. UBOI’s Latest Investor Presentation
