Ed-role of Different Banks (a Comparison)

7/28/2019 Ed-role of Different Banks (a Comparison)

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ROLE OF DIFFERENT BANKS (A

COMPARISON) FOR MSME/SME AND

INSTITUTIONS SUPPORTING THEM

Role of Banks


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ROLE OF BANKS

Apart from specialized institutions which provides financialbase for setting up the entrepreneurship project, ourpublic and private banks also involved in thedevelopment of future businesses.

We are taking a outlook and comparison for the followingbanks:

IDBI-Industrial development bank of India.

SBI-State bank of India.

ICICI-Industrial credit and Investment corporation of India.HDFC-Housing development finance corporation.

BOB- Bank of Baroda.


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IDBI

IDBI Bank has been actively engaged in providing amajor thrust to financing of SMEs. With a view toimproving the credit delivery mechanism and shorten theTurn Around Time (TAT), IDBI Bank has developed a

special business model to serve the SMEs in India. TheBank has set up 24 City SME Centers (CSCs) acrossIndia in Mumbai, Delhi, Kolkata, Chennai, Bangalore,Hyderabad, Pune to name a few. These CSCs are theBank's hubs while dedicated SME desks have been set

up in several branches across these cities. Thesebranches serve as front offices for sales delivery andcustomer service


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DIFFERENT LOANS:TYPES

SME Finance Products: Sulabh Vyapar

Loan , Dealer FinanceFunding under

CGFMSE, Direct Credit Scheme SIDBI

Preferred customer scheme IDBI Bank /

SIDBI, Vendor financing (Pre Sale)

Vendor financing (Post Sale), Lending

Against the Security of Future Credit CardReceivables
http://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asp


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Continuing:

Working Capital Financing Software

Development Entities

Finance to Medical Practitioners

Loan to SRWTO-small road and watertransport operations.

Lending Against the Security of Future Credit

Card Receivables

SME Hosiery Special Current Account
http://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asphttp://www.idbi.com/idbi/sme_products.asp


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Common between different loans

Eligible Segments- Micro and Small Enterprise(manufacturing / services, Distribution chain partners)

Facility-Overdraft, Cash Credit, Term loan, BillsDiscounting

Purpose- Loan Amount-UP TO 500 LACS.

Tenor-may/may not be time bound.

Pricing- linked to govt. lending rates.

Security-PG of the proprietor / partners/ promoterdirectors

Processing charges- usually 1% fee.


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SBI-State bank of India.

term loans,

working capital and

equity fund finance

Rs 5 lakh, no margins are involved. For needsranging from Rs 5 lakh to Rs 20 lakh, the marginis set at 10 per cent. Term loans for acquisitionof fixed assets

Working capital loans financing current assets

Letter of credit for acquisition of machinery andpurchase of raw materials


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Continuing SBI.

Deferred payment guarantees for purchase of machineryon deferred payment basis.

Bill facility for purchase of raw materials and for sale offinished goods.

Composite loans (term loans plus working capital) up toRs 25 lakh.

Bank guarantee in lieu of security deposits to be madewith government department/other departments forexecution of orders.

Names of the loans;Transportation loans, cyber plus, dal mill, paryatan plus,

SSI Loans, SME Petro card, Retail trade etc.


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ICICI BANK

Working capital finance.

Vendor/Dealer finance.

Equipment finance. IMPORT/EXPORT FINANCE.

Other important facilities.


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HDFC Bank

Working capital finance

Health care project finance

Short term financing Bill discounting

Export credit

Infrastructure development facilities. Channel financing


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Bank of Baroda: SME Loan Factory

Baroda Vidyasthali Loan

Baroda Arogyadham Loan

Baroda Laghu Udhyami Credit Card

Baroda Artisans Credit Card (BACC)

Technology Up gradation Fund Scheme (Tuffs) For

Textile And Jute Industries

Credit Linked Capital Subsidy Scheme (Clcss) ForSsi Units

Composite Loans
http://bankofbaroda.com/bbs/vidyasthaliloan.asphttp://bankofbaroda.com/bbs/arogyadhamloan.asphttp://bankofbaroda.com/bbs/laghucredit.asphttp://bankofbaroda.com/bbs/bacc.asphttp://bankofbaroda.com/bbs/clcsstufs.asphttp://bankofbaroda.com/bbs/clcsstufs.asphttp://bankofbaroda.com/bbs/clcss.asphttp://bankofbaroda.com/bbs/clcss.asphttp://bankofbaroda.com/bbs/compositeloans.asphttp://bankofbaroda.com/bbs/compositeloans.asphttp://bankofbaroda.com/bbs/clcss.asphttp://bankofbaroda.com/bbs/clcss.asphttp://bankofbaroda.com/bbs/clcsstufs.asphttp://bankofbaroda.com/bbs/clcsstufs.asphttp://bankofbaroda.com/bbs/clcsstufs.asphttp://bankofbaroda.com/bbs/clcsstufs.asphttp://bankofbaroda.com/bbs/bacc.asphttp://bankofbaroda.com/bbs/laghucredit.asphttp://bankofbaroda.com/bbs/arogyadhamloan.asphttp://bankofbaroda.com/bbs/vidyasthaliloan.asp


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Bank of BarodaContinuing:

Collateral Free Loans Under Guarantee Scheme OfCredit Guarantee Fund Trust For Micro And SmallEnterprises

Loans under National Equity Fund (NEF) Scheme

SME Short Term Loans

SME Medium Term Loans

Baroda SME Gold CardScheme for Financing Energy Efficiency Projects

Margin Money Scheme under Rural Employment G
http://bankofbaroda.com/bbs/collateral.asphttp://bankofbaroda.com/bbs/collateral.asphttp://bankofbaroda.com/bbs/collateral.asphttp://bankofbaroda.com/bbs/nef.asphttp://bankofbaroda.com/bbs/smeshorttermloans.asphttp://bankofbaroda.com/bbs/smemedtermloans.asphttp://bankofbaroda.com/bbs/smegoldcard.asphttp://bankofbaroda.com/bbs/financeenergy.asphttp://bankofbaroda.com/bbs/mms.asphttp://bankofbaroda.com/bbs/mms.asphttp://bankofbaroda.com/bbs/financeenergy.asphttp://bankofbaroda.com/bbs/smegoldcard.asphttp://bankofbaroda.com/bbs/smemedtermloans.asphttp://bankofbaroda.com/bbs/smeshorttermloans.asphttp://bankofbaroda.com/bbs/nef.asphttp://bankofbaroda.com/bbs/collateral.asphttp://bankofbaroda.com/bbs/collateral.asphttp://bankofbaroda.com/bbs/collateral.asphttp://bankofbaroda.com/bbs/collateral.asp


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Ins t itut ions suppo rt ing smal l scale

Industr ies:

Central Level:

SSI Board- Small scale industries Board

KVIC- Khadi and Village industries commission.

SIDO- Small Industries Development organization.

NSIC- National small industries corporation Ltd.

NSTEDB-The science and technology entrepreneurshipdevelopment board.

NPC-National productivity council.

NISIET- National institute of small industry extension andtraining.

NIESBUD-National institute for entrepreneurship and smallbusiness development.

IIE-Indian Institute of Entrepreneurship.

EDI- Entrepreneurship development institute.


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Continuing:

State Level:

DIs- Directorate of industries DICs-District Industries centre

SFCs-state financial corporations

SIDCs/SIICs-state Industrial development

/Investment Corporation. SSIDCs-state small Industrial development

corporations.

Others:

Industry associations Non governmental organizations

R&D Laboratories.


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DETAIL-SSI BOARD

Central level institutions:

SSI Board-formed in 1954 having unionindustry minister as the chairman, devoted

to: Policies and programmes, development of

industries in a specific region such as

north east, credit facilities, taxation andmodernization, marketing

And sickness removing measures.


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KVIC

The KVIC is a statutory body created byan ac of parliament, to promote Khadi andother village industries in the rural India.

The other role of KVIC is building upreserve of raw material and supply forproducers, providing technical anddesigning information to the institutionswhich are working for the development ofthe rural area.


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SIDO-Small industrial development

organization.

SIDO functions under the ministry of SSI, established in1954. The important role includes tool training, traininginstitutions, training for entrepreneurs, technical andmanagerial consultancy, assistance for exports, pollutionand energy audits.

The DC-development commissioner SSI, is under the unionministry of industry. The role includes the monitoring,coordinating and arranging the necessities for thedevelopment of small scale industries.

Regional testing centers, central footwear training

institutes, key functions are:Entrepreneurial Development and management training,skill development, preparation of project files, plantmodernization studies, collection of data- for PrimeMinisters Rozgar yojna.


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NSIC

National small scale Industries corporation Ltd.-

formed in 1955, providing vital services for theSSIs. The major roles are:

Machinery and equipment hire purchase

Assistance for procurement of raw material Marketing assistance, Technology transfer

centre,

Financial assistance schemes,100% lease on

the purchase of the technology up gradation

and tax rebate on full year rentals.


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OTHERS

NABARD-National bank for agricultural and

rural development-loans to artisans, handicrafts,cottage etc.

HUDCO-Housing and urban development

corporation Ltd-social sector infrastructure,creation of hosing facility.

TCOs-Technical consultancy organization,

preparation of the project files, feasibility study,

marketing research, identify potentialentrepreneurs, management consultancy and

skill up gradation programme.


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NGOs/ASSOCIATIONS

NGOs/associations with financial aid from government.

Some are:

Karnataka small-scale industries association

Kerala state small-scale industries association

United cycle parts manufacturers association, Ludhiana

Vidharba industries association, Nagpur.

M.P Laghu udyog sangh, Bhopal.

Tamil Nadu small and tiny industries association, Chennai.Udyog vihar industries association, Gurgaon.

PHD chamber of commerce and industry, New-Delhi.

Maharashtra industrial development corporation, Nagpur.


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Smal l Indus tr ies Development Bank of Ind ia-

SIDBI.

Ed-role of Different Banks (a Comparison)

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