e-handout on SME ASSET PRODUCTStestkart.in/download.php?file=e_handout_on_sme... · e-handout on SME ASSET PRODUCTS (updated as on 30.04.2019) Prepared by ANV Subbarao Chief Manager

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e-handout onSME ASSET PRODUCTS

(updated as on 30.04.2019)

Prepared by ANV Subbarao

Chief Manager (Training)SBILD, Masulipatnam

Please note that wherever circular reference no(s) are given in this e-handout,please click there (hyper-link) to get the circular soft copy for ready reference.

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INDEXSL.NO. NAME OF PRODUCT/SCHEME PAGE NO (S)

1 SBI ASSET BACKED LOAN (ABL)7,8,92 SBI ASSET BACKED LOAN (CRE-CP)

3 SIMPLIFIED SMALL BUSINESS LOAN (SSBL) 10

4 SBI CORPORATE HOME LOAN 11

5 SME CREDIT CARD 12

6 SME SMART SCORE13, 147 SME CREDIT PLUS SCHEME

8 DAL MILL PLUS15, 169 COTTON GINNING PLUS

10 DOCTOR PLUS17, 1811 MEDICAL EQUIPMENT FINANCE SCHEME

12 LEASE RENTAL DISCOUNTING SCHEME 19, 20

13 SBI CONSTRUCTION EQUIPMENT LOAN21, 2214 SBI FLEET FINANCE SCHEME

15 ELECTRONIC DEALER FINANCE SCHEME (E-DFS) 23, 24, 25

16 MORTGAGE DEALER FINANCE SCHEME (M-DFS) 26, 27

17 DROP LINE OD FOR DEALERS UNDER E-DFS & M-DFS 28, 29

18 ELECTRONIC VENDOR FINANCING SCHEME (E-VFS) 30, 31, 32

19 E-SMART SME, E-COMMERCE LOANS (Flipkart, Shopclues) 33, 34

20 CORPORATE RETAIL TIE-UP for Financing Commercial Vehicle and Construction Equipment

35

21 TAXI AGGREGATOR SCHEME (OLA, UBER & ECORENTACAR) 36, 37

22 FRANCHISE FINANCING 38, 39, 40

23 OPEN TERM LOAN 41

24 FLEXI LOAN 42

25 FINANCING AGAINST WAREHOUSE RECEIPTS 43

26 LOANS TO BUSINESS CORRESPONDENTS (BCs) 44

27 SBI OD FOR BUSINESS CORRESPONDENTS (BCs) 45

28 WEAVERS CREDIT CARD (PMMY) 46

29 GENERAL CREDIT CARD 47

30 ARTISAN CREDIT CARD 48

31 LIBERALISED SCHEME 49

32 STAND BY LINE OF CREDIT FOR W/C REQUIREMENT 50, 51

33 FLEXI LOAN FOR TRADE & SERVICES SECTOR 52, 53

34 CONSULTANCY SERVICES CELL & PROJECT UPTECH 54, 55

35 CLUSTER SPECIFIC PACKAGE: CERAMIC CLUSTERS 56

36 CLUSTER SPECIFIC PACKAGE AUTO COMPONENTS CLUSTER 57

37 SME SBI TIE-UP CARD 58, 59

38 SBLC BACKED FINANCING FOR JAPANESE CORPORATES 60, 61

39 CAPEX FUNDING FOR DEALERS OF IOCL 62

40 ARTHIAS PLUS SCHEME : FOR FINANCING ARTHIAS/ COMMISSION AGENTS (Revised wef 12102018)

63

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INDEX SL.NO. NAME OF PRODUCT/SCHEME PAGE NO (S)

41 TIE UP WITH BHARATIYA YUVA SHAKTI TRUST (BYST) 64

42 SBI “SME e-Biz LOAN” 65

43 SME MARBLE PLUS 66

44 SME E SMART SCORE 67

45 SME E-RICKSHAW 68

46 ADVANCES AGAINST RAILWAYS LC 69

(GOVT. SPONSORED SCHEMES)SL.NO. NAME OF PRODUCT/SCHEME PAGE NO (S)

1 MUDRA (PMMY) 70

2 STAND UP INDIA 71

3 DRI 72

4 NULM 73, 74

5 NRLM 75, 76

6 PMEGP 77, 78

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S.No. IMPORTANT CIRCULARS/GUIDELINES & FORMATS

1 ADV – POLICY MATTERS, PRE-POST SANCTION, WC (PART 1) LOAN POLICY 2019-20 RBI -MSME

2 ADV – GEN. INSTRUCTIONS 1 – TERM LOAN, BG, LC, EXPORT CREDIT ETC (PART 2)

3 ADVANCES – GEN. INSTRUCTIONS 2– REPORTING, WRITE OFF ETC (PART - 3)

4 ADVANCES – LARGE CORPORATES (PART – 4) WILLFUL DEFAULTER INT. EXPOSURE NORMS

5 ADVANCES – SME (PART – 5) DISCONTINUATION OF LOC/LOU - 15032018

6 PROJECT VIVEK – MASTER CIR 31072017 7. CLARIFICATIONS & FAQS – 10112017 BELOW 25L 240518

8 PV - DCCO (DATE OF COMMENCEMENT OF COMMERCIAL OPERATIONS) GUIDELINES - 05122017

9 PV – INDUSTRY SPECIFIC BENCH MARK RATIOS – 18122017 DT 23012018 020418

10 PV- FINANCIAL POWERS 28082018 PV – DEVIATION HURDLE CUE RATING 26112018

11 BG >18 MONTHS 12. BG GEM 13. GOVT. BANKING – ISSUE OF BG & LC – DT 21092017 BG CLAIM PERIOD

14 BG INVOCATION 04012018 15. BILL FINANCING DISCOUNT 18122017 BG MARGIN 050918

16 SOP - INSURANCE – KRI - CIR DT 24082017 & ANNEX CGTMSE GSTIN - 15122017

17 TIR MASTER CIRCULAR 13132013 18 TIR SOP DATED 25092017 CLARIFICATIONS 09032018SUPPLEMENTARY TIR 090718 POSSESSION OF PROPERTY 090718 TIR FORMAT MODI. 121218

19 SERVICE CHARGES – ADVANCES (EXCEPT PER) WEF 01042019 - ANNEX -1 ANNEX – 2 ANNEX – 3 ANNEX – 4 MODIFICATION AUTHORITY CIR 13022019 20. SER. – CERSAI – 09082017

21 POST SANCTION CREDIT PROCESS - DASH BOARD CIR DT 30082017

22 FREQUENT AND LARGE ENHANCEMENTS IN LIMITS - 10082017

23 CRA 50 LACS CRA REGULAR MODELS CRA NBFC HFC 12042018 & 210119, CRA SIM MODELS CRA RRE

24 STOCK & RECEIVABLE AUDIT MS DT 07092018

25 ANALYSIS OF FINANCIAL STATEMENTS & RATIO ANALYSIS

26 WORKING CAPITAL METHODS - DT 09012017 27. DT 31032017 28. E-ABS DT 25092017

29 CERSAI SOP – 06122017 DISC POWERS INT RATES 100418 MOROTORIUM 200418

30 PERFECTION OF SECURITIES CHARGED - 10082017

31 LOS SME – LSM DESKTOP - CIR DT 24082017 LLMS – RED FLAGGED A/CS 020618

32 ONLINE CHECKLIST FOR LOANS OF RS. 1 CRORE & ABOVE - 02112017

33 OBTENTION OF AUDITED BALANCE SHEETS EXTENDED TIME - 25102017

34 VERIFICATION OF FINANCIALS OF BORROWING ENTITIES – 08122017

35 REVIEW OF STANDARD ASSETS CIR DT 26092017 NON COOPERATIVE BORROWERS SOP 170119

36 CIC REPORTS – CIR DATED 18122017 & CIR DATED 05012018 CIC DEFAULTERS LIST 070918 CIC SME 12072018

37 ECRA SEBI GUIDELINES – 21112017 ECRA 50 CRORES 11042018

38 PROJECT VIJAY/ VIJAYAPATH ROLE MANUAL DT 10102017

39 MONTHLY STTS SOD 26092017 – CALC. OF DP STOCK STT 15032018 SUNDRY CREDITORS 280618 DP CALCULATION 05092018, DP COMPUTATION 151218

40 ADOPTION OF INDAS STANDARDS CIR DT 22092017 LOAN SYSTEM BANK CREDIT 220119

41 FLEXIBLE STRUCTURING OF LONG TERM PROJECT LOANS – 22092017

42 TAKE OVER NORMS MASTER CIRCULAR DT 11052018

43 HOLDING ON OPERATIONS CIR DT 22092017 & CIR DT 18122017

44 STANDARDIZATION OF TEMPLETS IN CREDIT PROPOSALS CIR DT 25092017

45 DELEGATION OF FINANCIAL POWERS – ADVANCES – 31122018 COMPROMISE 260318 & 200219 CCCC 220219

46 POLICY -ENGAGING BUSINESS ASSOCIATES 47) INT.RATE STRUCTURE CIR & ANNX

47 REVAMPING OF CORPORATE CREDIT 010618 EXPORURE TO STATE AND CEN. ENTITIES 100518

48 CGS FLAG FOR CGFMU & CGSSI A/CS – 28062018

49 ROLE OF FUNCTIONARIES IN CREDIT - 06072018

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S.No. IMPORTANT CIRCULARS/GUIDELINES & FORMATS

50 VERIFICATION OF SOURCE OF EQUITY - 06072018

51 FORMAT FOR INVESTIGATION/ EXAMINING STAFF ACCOUNTABILITY – 090718

52 CREDIT FACILITIES TO MINORITIES - 16072018

53 INTEREST RATES -MODIFICATION IN AUTHORITY STRUCTURE TO PERMIT CONCESSIONS -180718

54 SERVICE CHARGES – MODI. IN AUTHORITY STRUCTURE TO PERMIT CONCESSIONS – 18072018

55 APPLICATION FOR LOANS UPTO RS.2 CRORES – CIR DT 31072018

56 COMPLIANCE CERTIFICATE FORMATS – CIR DT 20042015 CIR DT 02112017

57 CONSTRUCTION SECTOR FINANCING – MARGINS – 030818

58 CRA DYNAMIC REVIEW – 040818 INSURANCE COVER OF SECURITIES CHARGED 07092018

59 VALUATION REPORT FORMAT CIR DT 17012015 ECR 05092018 CRA HUDLE RATE 070918

60 POST SANCTION 07092018 LARGE BORROWERS 18082018 SME DELIVERY MODEL 140119

61 BUYERS CREDIT SBLC FOREIGN OFFICES 130818 TLs TENOR AVERAGE MATURITY 170918

62 SARFAESI PRIVATE TREATY 191018, CIR DT 151218, VALUATION OF NEW PROPERTY 01102018

63 NON-LC REIMBURSEMENT FINANCE 19102018 RAROC LEVEL DEVIATION 150119

64 LEGAL ENTITY IDENTIFIER FOR LARGE CORPORATES 250918 SARFAESI REVISED SALE NOTICES

65 INTERCHANGEABILITY FUND BASED AND NON-FUND BASED LIMITS

66 FINANICING GEMS & JEWELLERY INDUSTRY POLICY 22102018

67 CRA VALIDATION PROCESS 10102018 CUE LITE CIBIL CMR 10102018

68 DISCOUNTING OF BILLS 25102018 STANDARD COVENANTS REVIEW 19092018

69 WIL FULL DEFAULTERS CBS MENU 031018 WORKING CAPITAL LIMITS CONTINATION 051018

70 WORKING CAPITAL LIMITS RENEWAL 201018 WC LIMITS REVIEW RENEWAL 270918

71 ZED CERTIFICATION FOR MSMEs 190918 RESOUTION OF NPA AUC THROUHG NCLT 170119

72 BG SIGNING THROUH SFMS MESSAGE – 291018 BG MORE THAN 18 MONTHS PAC -021118

73 BG MORE THAN 18 MONTHS DEVIATIONS AUTHORITY 041218

74 CGTME MODIFICATIONS 011218 CGTMSE REG. MODIFICATIONS 011218

75 CIC DEFAULTERS LIST 01122018 TRADE FINANCE DUE DELIGENCE 011218

76 VALUERS STANDARD LETTER OF APPOINTMENT – 05112018

77 VALUATION REPORT REQUEST LETTER THROUGH LLMS 011218

78 OPINION REPORTS 291118 POLICY FOR FINANCING DIAMOND INDUSTRY

79 SME DOCUMENTATION FORMATS INSURANCE OF BANK OWN ASSETS 211218

80 CONTROL REPORTS SUBMISSION AND TAKING ON RECORD – 20122018

81 LLMS PRE & POST SANCTION 07012019 PRIORITY SECTOR GUIDELINES 21122018

82 LOANS STATUTORY AND OTHER RESTRICTIONS -121218 VERIFICATION OF FIN.DOCS 181218

83 LOAN APPRAISAL TERMS AND CONDITIONS 101218 RESTRUCTURING SCHEME FOR MSME 160119

84 INTERNAL AND EXTERNAL RATINGS MAPPING 291218 EARLY WARNING SYSTEM MODEL 040119

85 COLLATERAL SECURITY NORMS TRADE & SERVICES 21022019

86 CONSORTIUM LENDING SOP 29012019 - 02032019 250319 DISCOUNTING OF BILLS SOP 01022019

87 FACTORING PRODUCTS 30012019 PROJECT FINANCE APPROACH 20022019

88 REVAMPING CREDIT COMMITTEES 08022019 INTEREST RATE CONCESSIONS 18022019

89 RESTRUCTURING APPRAISAL FORMATS 10L-50L

90 CAPSA – REPORTING OF IRREGULARITIES 30032019

91 SME DELIVERY MODEL MODIFICATIONS 26032019

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S.No. IMPORTANT CIRCULARS/GUIDELINES & FORMATS

92 RECOVERY THROUGH COMPROMISE SETTELEMENTS SOP 300319

93 RECOVERY THROUGH LOK ADALATS SOP 300319

94 RECOVERY THROUGH DRT SOP 190319

95 RECOVERY THROUGH CIVIL COURTS SOP 080319

96 EXIT POLICY FOR STANDARD ASSETS IN STRESS 12032019

97 FILING OF CASES AGAINST DEFAULTERS SOP 30032019

98 APPROACH TOWARDS GROUP ACCOUNTS 28032019

99 INFRASTRUCTURE LENDING 25042019

100 INTEREST SUBVENTION TO MSME 07032019 & 22042019

101 NEW LENDING RATE SYSTEM RRLR 30032019 & 30042019

102 MSME PRODUCT CODES 16032019

103 RESTRUCTURING SCHEME FOR MSME UP TO RS.25 CRORES 160319

104 REVIEW OF NPAS AND AUCAS DT 30032019 & 16042019

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SBI ASSET BACKED LOAN – VARIANTS (1 & 2)SCHEME SBI ASSET BACKED LOAN SBI ASSET BACKED LOAN (CRE-CP)

TARGET GROUP

All Business Units i.e. manufacturing and services activities along with self-employed and professional individuals & wholesale/retail trade. i. Existing Customer already availing credit facilities from us.ii. New units with marketable assets to offer as security.iii. Takeover of existing units from other Banks/ FIs with satisfactory track record. (Credit information report to be obtained)

Proprietorship/Partnership/Company.Eligible Customers :Existing Customer already availing credit facilities from us. New units with marketable assets to offer as security Takeover of existing units from other Bank/FIs permitted withsatisfactory track record (Credit information report to be obtained).

PURPOSE For build-up of current assets and fixed assets needed for business purpose, capacity expansion, modernization, short term working capital (including shoring up of Net Working Capital, etc).

NFB facility can be given; however, LTV ratio has to be maintained for the aggregate limits (FB+NFB) @ 50% of the realizable value.

Creation/acquisition of real estate such as office buildings, retail space, industrial or warehouse space, multiplex, hotels,restaurants, gymnasium, amusement parks, cold storage etc. where the prospect for repayment would generally be lease or rental payment or sale of asset. For both working capital (including pre-operative expenses) and fixed asset.

FACILITY Fund Based (Drop-line Overdraft facility ) and Non Fund based

Fund Based (Drop-line Overdraft facility) & Non Fund Based.However, LTV ratio has to be maintainedfor the aggregate limits (FB+NFB) @ 50% of the realizable value.

ASSESSMENT OF LIMIT

Upto Rs. 5 crore : Upto Rs. 5 crore, working capital credit limit to becomputed at minimum 25% of projectedturnover, subject to cash flow being sufficient to repay the amount

Above Rs. 5.00 crores : Assessed Bank Finance (ABF).

NFB facility : Minimum 25% cash margin for NFB facility.

Working Capital- Based on projected cash flow of the project. Fixed asset – Based on the project cost after deducting various advances/deposit received/receivable from the project. Borrower will submit cash flow for the entire tenor of loan, at the time of initial sanction of limits and annually thereafter at the time of review of the limits. Cash flow should justify the reduction in drawing power (at each stage) in the account.

QUANTUM OF LOAN

Minimum loan amount: above Rs. 10 lacs Maximum loan amount: Rs. 20 Crores

Minimum loan amount: above Rs 10 lacs; Maximum loan amount:Tier I Branch: Rs 50 CroresTier II, III Branch: Rs 20 CroresTier IV,V, VI Branch: Rs 5 Crores

LTV/MARGIN

Immovable property: 60% of the realizable value

Immovable property: 50% of the realizable value. 25% margin both for working capital and fixed assets.

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SCHEME SBI ASSET BACKED LOAN SBI ASSET BACKED LOAN (CRE-CP)

SECURITY Collateral: • Immovable property (SARFAESI enabled)

Third party Guarantee : Personal Guarantee from the Promoters / Partners / Directors of the Unit. • Personal Guarantee of the owner of the Collateral Security offered for Mortgage.

Immovable property (compliant underSARFAESI Act) belonging to Unit, itsproprietor/partners/directors or theirnear relatives, in the name of Associate units with common partners/directors or their near relatives. Near relatives will cover Father, Mother, Spouse, SonDaughter, real Brother & real Sister.

INTEREST RATE

NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-CGTMSE/17/2017 – 18 dt. 05th July 2017 – CGTMSE Coverd Loans

Revised Interest Structure wef 01042018

Processing Charges Cir dt 11012019

MCLR - One year + 305 bps 25 bps concession for obtaining ECR(only to the unit having ECR of “BBB+and above”). Discretion for further reduction upto 100 bps (to be exercised judiciously by the sanctioning authority not below CCC-I/ MCC for all sanctions falling within circle power on case to casebasis) Cir dated 26.09.2017

PERIOD/REPAYMEN

Drop-line Overdraft: Limits can be sanctioned for periods ranging from 12 months to 240 months with repayment on EMI basis. • No over-drawings permitted.

From 12 months to 72 months, including the moratorium period, with either Equated Reduction in limit or customized reduction in limit, depending upon the cash accruals as per projections. Interest to be serviced monthly during the period of moratorium. No over-drawings.

STOCK STATEMENTS

Quarterly Operational Data cum status of working capital funds statement on Quarterly basis. (May/Aug/Nov/Feb). Drawing Power is not linked to Quarterly Operational Data However, current assets level as per quarterly operation data should be more than Limit.

Cash flow statement for Builderfinance on Quarterly basis. (May/Aug/Nov/Feb) Drawing Power is not linked to Quarterly Cash Flow statement. However, Cash flow statement is must to confirm the level of activity/status of the project.

REVIEW/ RENEWAL

No renewal of limit. Review has to be carried out annually and put up to sanctioning authority under whose powers total/aggregate exposure to the borrowing unit/entity falls.Restitution facility : The restitution / sanction will be subject to availabilityof adequate Cash Flow to service the repayment during the residual periodof the loan.Enhancement : Can be considered subject tothe following: � CRA of the borrowing unitis SB-8 or better and conduct of account is fully satisfactory

Review has to be carried out annuallyand put up to sanctioning authority under whose powers total/aggregateexposure to the borrowing unit/entityfalls. Enhancement : Can be considered subject to the following: CRA of the borrowing unit is SB-8 or better and conduct of account is fully satisfactory.

Rating should not be more than 18 months old from the balance sheet date.No enhancement will be considered for SMA-1 & SMA-2 accounts (Account should not have been classified SMA 1 & 2 in the last 12 months).

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SCHEME SBI ASSET BACKED LOAN SBI ASSET BACKED LOAN (CRE-CP)

CRA RATING

SB-10 and below is not eligible for finance In case, at the time of review, unit’s internal rating deteriorates to SB-10 and/or lower, interest rate will be increased by 200 bps from the date of last audited balance sheet, on the basis of which CRA has been done. These instructions will be applicable to all the accounts reviewed/ sanctioned subsequent to these instructions. Further, deterioration in CRA e.g. SB-10 & below, is a sign of stress, resultantly, affecting cash accruals, etc. As such, operating units may opt for reducing the exposure/ exercise exit option. The operating units will incorporate the same in the Arrangement Letter.

INSPECTION Half yearly inspection of property and unit/activity.

During inspection, the Cash FlowStatement as obtained from borrowershall be scrutinized to confirm thelevel of activity/status of the projectand end use of funds

REFERENCE NBG/SMEBU-SBI ABL/49/2013- 14 31.10.2013 Modifications SME Easy Loan NBG/SMEBU-SBI ABL/68/2013-14 21.01.2014 Amendments under the schemeNBG/SMEBU-SBI ABL/74/2013- 14 05.02.2014 Frequently Asked QuestionsNBG/SMEBU-SBI ABL/17/2014-15 23.06.2014 Removal of Primary Security Clause NBG/SMEBU-SBI ABL/22/2014- 15 28.06.2014 Obtention of External Credit Rating NBG/SMEBU-SBI ABL/30/2014-15 16.08.2014 Revised ABL & ABL-CRENBG/SMEBU-SBI ABL/34/2014-15 19.08.2014 Authorisation of branchesNBG/SMEBU-SBI ABL/63/2014-15 10.02.2015 Addition/modifications NBG/SMEBU-SBI ABL/67/2014-15 19.03.2015 Addition/modifications NBG/SMEBU-SBI ABL/44/2015-16 26.10.2015 Revision in product featuresNBG/SMEBU-SBI ABL/34/2016-17 16.07.2016 Removal of primary security NBG/SMEBU-SBI ABL/41/2016-17 19.08.2016 Revision in product featuresNBG/SMEBU-SBI ABL/46/2016- 01.09.2016 Revision in product featuresNBG/SMEBU-SBI ABL/68/2016 – 17 Friday,November 25,2016NBG/SMEBU-OPER/74/2016 – 17 dt. 14.12.2016 - Exit Policy for Standard Assets NBG/SMEBU-SBI ABL/8/2017-18 dated 18.05.2017 – ABL Product Features ModiNBG/SMEBU-SME EASY L/11/2017 - 18 dt. 30.05.2017 –Clarifications TEL & SEL Asset Backed Loan – SME Manual 2017 & Asset Backed Loan (CRE) – SME Manual 2017NBG/SMEBU-SBI ABL/40/2017– 18-26.09.2017- ABL CRE-CP (Modifications)NBG/RE,H^HD-HL/43/2017 – 18 Date: Mon 27 Nov 2017 – ABL (RH)NBG/SMEBU-SBI ABL/41/2018 – 19 Date: Fri 30 Nov 2018 – CC Product CodesSCHEME MODIFICATIONS CIR DT 22032019

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SIMPLIFIED SMALL BUSINESS LOAN TARGET GROUP

All Business units engaged in manufacturing, services activities along with self-employed and professional individuals, wholesale/retail trade.

PURPOSE General purpose loan for business such as for build-up of current assets and fixed assets needed for business purpose

FACILITY Drop-line Overdraft facility

ELIGIBILITY i. Existing business for at least 5 years in the same location/area.ii. Should be owner of the premises or should have valid tenant agreement with the owner of the shop, in case of rented premises the residual period to be minimum >3 years and minimum 1 year stay at the rented/leased premisesiii. Current account holder at any bank for at least 2 years (proprietorship, partnership & corporate concerns). iv. Minimum average monthly balance of more than Rs. 1 lac in last 12 months. v. Unit is situated within a radius of 5 km from the financing branch.vi. The borrower should also fulfil the eligibility criteria as per annexure-A cir dt 180718 (Go/No Go). If any of the parameters in annexure get response as ‘No’, the unit will not be considered eligible and no deviation to be permitted.

ASSESSMENT OF LIMIT

10 times of average monthly balance in current account in previous 12 months .A separate scoring model as per annexure-B in the Circular has been designed, cut off for the scheme is 50% of the scores, otherwise unit will not be considered eligible under the scheme.

QUANTUM • Minimum: Above Rs. 10 lacs • Maximum: Less than Rs. 25 lacs.LTV/MARGIN 10% which will be ensured through stocks and receivable statement

SECURITY Primary: First exclusive charge on current assets of the unit.Collateral: • Minimum collateral of 40% in the form of exclusive mortgage charge on Land & Building/cash equivalent like lien/charge on Fixed Deposit, Mutual Fund etc. • Property belonging to Third party to be discouraged (except near relatives).• Personal guarantee of all the directors/partners. However, personal guarantee of Professional director/Independent directors/Nominee directors will not be obtained.• Personal Guarantee of the owner of the Collateral Security offered for Mortgage/Pledge.

INTEREST RATE

NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017 NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 - Collateral Revised Interest Structure wef 01042018

PERIOD/REPAYMENT

from 12 months to 60 months (reducing DP) including moratorium of maximum three month. No over-drawings.

STOCK STATEMENTS

Quarterly

REVIEW/ RENEWAL

No renewal of limit. • Review has to be carried out annually and to be put up to sanctioning authority as per delegation of financial powers.

CRA Not applicable.

INSPECTION Quarterly

REFERENCE NBG/SMEBU-SSBL/12/2018 – 19 Date: Wed 18 Jul 2018 SME Manual 31.12.2017 Health Insurance & RD not mandatory cir dt 170119

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SBI CORPORATE HOME LOAN (Home Loans to Companies)

Cir dated 04042016, Product code Circular NBG/RE,H&HD-HL/4/2018 – 19 Date: Thu 19 Apr 2018 – HL M.Cir.

(NBG/RE,H&HD-HL/46/2018 – 19 Date: Mon 24 Dec 2018 – Now SMEBU )

1. Segment : SME/C&I

2. Purpose : (i) To provide Home Loans to Corporate Entities (Both Public & Pvt. Ltd. Companies) forconstruction/acquisition of Residential Units in the name of the Company for use by their Directors/Promoters and Employees, and (ii) For Take-over of Home Loans in the name of the Company from other Banks/HFCs, subject to compliance to our extant norms for Take-over of Home Loans. However, loans for only acquisition of residential plots will not be permitted under the proposed Scheme.

3. Eligibility Corporate Entities. Should be our existing borrower or a debt free Company, Should be in the line of business for at least 3 years, Should have earned uninterrupted Net Profit in last three years, Existing loan accounts of the Company, if any, should be Regular and Standard and also should not have been restructured during the last 3 years. Opinion Report from the existing Bankers, if any.ECR of BBB and better for units having total exposure of Rs.10 crores and above, CRA of SB-8 & better in respect of both existing SME/C&I customers and new customers.

4. Loan Amount : Minimum: Rs. 1 crore, & Maximum: No Cap. (Minimum loan amount of Rs. 1 crore stipulated under the Scheme is per Corporate borrower irrespective of the number of residential units proposed to be acquired). 5. Permissible loan amount : The maximum permissible Home Loan amount will be assessed on the basis of the lowest value arrived at from the undernoted eligibility criteria: Maximum permissible LTV Ratio, Minimum Gross DSCR of 1.25 (inclusive of EMIs of the proposed Home Loan), and Loan amount applied.

6. LTV Ratio : Maximum 75%

7. Nature of facility : Term Loan (Maxgain facility will not be permitted under the proposed Scheme).

8. Loan Tenor : 15 years (Maximum) including moratorium period.

9. Moratorium Period : Up to 3 months in case of purchase of ready-built house and maximum 36 months in case of under-construction house. However, interest should be serviced during the moratorium period.

10. Security : (i) Equitable mortgage of the property to be acquired/constructed with the help of Bank finance and registration of mortgage charge with Registrar of Companies and CERSAI within the stipulated time frame.(ii) Personal Guarantee of Promoter Directors,(iii) The Company will not be permitted to extend parripassu charge on Housing Property, mortgaged to the Bank for Home Loan, for securing any other loans/advances to the Company during currency of Home Loan.

11. Interest Rate : NBG/RE,H&HD-HL/66/2017 – 18 Date: Sat 31 Mar 2018

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SME CREDIT CARDTARGET GROUP

SSI units, tiny units, village industries, retail traders, professionals, self-employed.

PURPOSE To meet any kind of credit requirements including purchase of shop● Term loans can be sanctioned under SBCC for acquisition of shop under Small Business Enterprises.

FACILITY Cash Credit and/or Term Loan

ELIGIBILITY Customers of the following segments with a satisfactory track record for the last two years:- ● Small industrial units ● Small retail traders ● Professionals & self employed persons ● Small business enterprises ● Transport operators ● Units who do not enjoy credit limit with us / other banks at present with excellent performance and credentials may be considered

ASSESSMENT OF LIMIT

For professional and self employed: Assessment of credit at 50% of gross income shown in IT return. Rational: to meet their working capital requirement adequately.A scoring model has been designed and those units which score a minimum of 60% qualify under the Scheme for which the working capital assessment will be made as under:

NBG/SMEBU-WCDL/98/2016 – 17 Friday,March 31,2017 NBG/SMEBU-WCDL/98/2016 – 17 Friday,March 31,2017 – Digital Transactions

QUANTUM OF LOAN

Maximum Rs. 10 lacs

MARGIN Upto Rs.25000/- Nil Above Rs.25000/- 20%

SECURITY Primary : : Hypothecation of stock in trade, receivables, machinery, office equipment- Collateral : SSI – No collateral is to be insisted upon (To be covered under CGTMSE) SBF—For loans more than Rs.25000/- charge over movable /immovable property/third party guarantee. All loans that are eligible for guarantee cover under credit guarantee scheme of CGTMSE.

R.O.I. NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018

PERIOD/REPAYMENT

The working capital component should be reviewed every year provided the credit summation is not less than 50% of the projected turnover. If the credit summation is less than 50%, then a repayment schedule should be fixed for the outstandings in suitable monthly instalments. The Term Loan component should be repayable in a maximum of 5 years in suitable instalments.

STOCK STATEMENTS

To be obtained annually as on 28th February.

REVIEW/ RENEWAL

Limit valid for 3 years subject to annual review. A major portion of the sales turnover should have been routed through the a/c as revealed by the credit summations.

CRA RATING Not applicable

INSPECTION Quarterly/Halfyearly

DOCUMENTATION

As applicable to SME advances

REFERENCE SME Manual 31.12.2017

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SBI SMART SCORE & SME CREDIT PLUS

SCHEME SME SMART SCORE SME CREDIT PLUS

TARGET GROUP

Individually managed proprietary/partnership firm or closely held public/privatelimited companies in the Small and medium industrial and trading sectorunder C&I and SIB segments.

Generally, it is for meeting unforeseen expenditure of SSI units related totheir working capital requirements, such as repairs of machinery, tax payments,additional expenditure on account of increased level of activity or unexpected bulk orders for which the existing sanctioned W/C limits are not adequate.

PURPOSE Working Capital needs & Acquisition of fixed assets

FACILITY Dropline Overdraft / Cash Credit / TermLoan OR Combination of these facilities (depending upon customer’s need)

Loan under this facility will be by way of clean cash credit. A separate accountis to be opened for each borrower. No drawing power would be assigned to thisaccount. No drawal shall be allowed in the account directly to the borrower.The borrower will advise the branchto transfer funds from this account to the operative cash credit account fromwhere money can be withdrawn

ELIGIBILITY The chief promoter /chief executive should be 18 to 65 years of age

The applicant must obtain a minimum overall score of 60% with a minimum of50% under each sub-head like Personal details, Business details and collateral details (except in cases where collateral should be asked as per Bank’s norms, where the minimum marks will be nil).

i. The customers should be of high standing and integrity. ii. ‘SME Credit Plus’ facility shall be applicable strictly for accounts which are Standard Assets as on 31st March for past 2 years. New accounts or accounts having less than 2 years banking relationship with us shall not be accorded ‘SME Credit Plus’.iii. For new/existing units requiring/ enjoying fund-based working capital credit limit of Rs.25 lacs and over, the minimum rating under the CRA system should be SB-9.

ASSESSMENT OF LIMIT

MANUFACTURING UNITS (25% of annual turnover for WC loan and 67% of project cost for TL)

TRADE & SERVICES: (15% of annual turnover for WC and 67% of project cost for TL.)

Once the regular fund-based working capital (FBWC) limits are assessed,additional limit @ 20% of the total FBWC credit limits can be sanctioned together with the sanction of the regular FBWC credit limits or subsequently depending on the borrower’s need.

QUANTUM OF LOAN

Manufacturing, Trade & Services Units:Minimum: > Rs. 10 lacsMaximum: < Rs. 50 lacs

Maximum of Rs.25 lacs.

The additional limit can be used twelve times in a year but there should be gap of at least 15 days between total repayment of funds drawn under the facility and its next utilisation.

Page 14

SCHEME SME SMART SCORE SME CREDIT PLUS

LTV/MARGIN

20% for working capital component and 33% for TL component.

As applicable to working capital advances.

SECURITY Hypothecation of stocks and assets financed by Bank As per Bank's extant norms for WC and Tls. Collateral Security not be insisted as the loans are to be covered under CGTMSE. However, if the borrower is not willing to bear the guarantee fee & premium for CGTMSE, then collateral security as per Bank’s norms need to be obtained

The Bank’s charge on security, both primary and collateral, available for theregular credit limits should be extended to cover this facility. Branches mayexplore and obtain additional collateral security, if available, but need notinsist upon this.

INTEREST RATE

NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018

PERIOD/REPAYMENT

WC loan to be renewed every two years with annual review of performance.TL/Drop Line OD- not more than 7 years excluding moratorium not exceeding 6 months

Amount once drawn under the facility will have to be liquidated within twomonths

STOCK STATEMENTS

To be submitted monthly As applicable to working capital advances.

REVIEW/ RENEWAL

Working Capital loans can be renewed if credit score is 35 and aboveout of 60 under business score

This additional facility has to be renewed once in a year along with the otherFBWC credit limits. It can be reduced or enhanced if there is revision in WC limits

CRA RATING

CRA exercise has been done away withfor loans below Rs. 50 lacs. (ScoringModel will serve as eligibility Criteria.).

As applicable to working capital advances.

INSPECTION Half Yearly for standard accounts.Monthly for SMA 0/1/2 accounts till theaccount turns standard

Monthly

DOCUMENTATION

As per simplified SME documentation Document should be obtained for aggregate credit facilities inclusive of SME Credit Plus and available securities are to be extended to cover additionalSME Credit Plus facility

REFERENCE NBG/SMEBU-SME SMART/36/2009 -10 Thursday,September 10,2009 M.Cir.NBG/SMEBU-SME SMART/46/2007 - 08 Saturday,March 29,2008NBG/SMEBU-SME SMART/23/2007 - 08Wednesday,December 12,2007NBG/SMEBU-SME SMART/25/2018 - 19Date: Tue 25 Sep 2018

SME Manual 2017

NBG/SMEBU-SME ADVANC/47/2018 - 19Date: Fri 21 Dec 2018 (Modifications)

Page 15

DALL MILL PLUS & COTTON GINNING PLUSSCHEME DALL MILL PLUS COTTON GINNING PLUS

TARGET GROUP

DALL MILL Units COTTON GINNING MILL Units

PURPOSE a) Working capital needsb) Acquisition of machinery/factory building for modernisation/ Expansion

FACILITY Term Loan, Working capital, Non fund limit, Cash Credit, Lcs, BGs, SME Credit Plus.

ELIGIBILITY a) Profit making existing units with CRA rating of SB- 9 and above as per normal Credit Risk Assessment(CRA new). b) Take-over of good units, subject to observance of takeover norms c) Newly proposed / Newly established Cotton Ginning units with CRA/CUE of SB-7/ CUE-7 and better. d) Scoring model will be applicable only for units with exposures upto Rs.50 lakhs and minimum score of 50 to be obtained.

ASSESSMENT OF LIMIT

Term Loan based on project cost, no upper ceiling. For working capital limits upto Rs. 5 crores- Nayak committee method wouldbe applicable @ a minimum of 25% projected annual turnover. Being a seasonal industry peak level and non peak level limits can be fixed depending on the actual need. A higher limit can be considered selectively on projected balance sheet method.Enhancements in existing units with CRA/CUE rating of upto SB-5/CUE-5 only to be considered. For units with CRA/CUE rating of SB-6 to 9 / CUE-6 to 9, enhancements to be considered against 100% Collateral and with prior approval of GM Network of the Circle.

QUANTUM OF LOAN

Need Based as per Assessment

LTV/MARGIN

Term Loan: 15% - 25%Working capital:Stocks 15% - 20%Book debts: 25% - 40%

Term Loan: 25%Working capital:Stocks: 25%Book debts: 40%

SECURITY a) Primary: Hypothecation of Assets financed by the Bank.

b) Collateral: With CGFMU / CGTMSE Cover: i. Loans to Micro units with exposure upto Rs.10 lakhs (PMMY-MUDRA loans) shall be mandatorily covered under Credit Guarantee Fund for Micro Units (CGFMU).ii. Accounts with exposure above Rs.10 lakhs upto Rs. 1 Cr. could be covered under CGTMSE, as per the willingness of the borrower unit, as they have to bear theAnnual Guarantee Fee (AGF) of CGTMSE.

Without CGFMU / CGTMSE Cover:Equitable mortgage of property / tangiblesecurity belonging to borrower / guarantorvalued not less than 75% of the loan amount.

a) Primary: Hypothecation of Assets financed by the Bank.

b) Collateral: With CGFMU / CGTMSE Cover: i. Loans to Micro units with exposure upto Rs.10 lakhs (PMMY-MUDRA loans) shall be mandatorily covered under Credit Guarantee Fund for Micro Units (CGFMU).ii. Accounts with exposure above Rs.10 lakhs upto Rs. 1 Cr. could be covered under CGTMSE, as per the willingness of the borrower unit, as they have to bear theAnnual Guarantee Fee (AGF) of CGTMSE.

Without CGFMU / CGTMSE Cover:Equitable mortgage of property / tangiblesecurity belonging to borrower / guarantorvalued not less than 75% of the loan amount.

Page 16

SCHEME DALL MILL PLUS COTTON GINNING PLUS

INTEREST NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018 SMEBU-SME ADVANC /37 / 2017-18 dated 22.09.2017 & NBG/SMEBU-COTTON/GIN/19/2018 – 19 dt 08.08.2018

PERIOD/REPAYMENT

Term Loan: 5 to 7 years excluding the gestation period of maximum 12months. Working Capital: Repayable on demand

STOCK STATEMENTS

Monthly Monthly Drawing Power on Receivables to be restricted to 40% of the Working Capital limit

REVIEW/ RENEWAL

Yearly Yearly

CRA RATING i. For initial two financial years: As applicable for food & agrobasedprocessing units, based on CRA ratingii. Subsequently – as per Scoring Model under “Dal Mill Plus” Scheme.

NA. Separate Scoring model given in the Circular dt 09.05.2015

INSPECTION Quarterly Quarterly

DOCUMENTATION

As applicable to SME units As applicable to SME units

REFERENCE NBG/SMEBU-DALLMILLPL/8/2018 - 19Date: Thu 24 May 2018

NBG/SMEBU-COTTON GIN/15/2015 – 16 Saturday,May 09,2015

NBG/SMEBU-COTTON/GIN/19/2018 - 19Date: Wed 8 Aug 2018

NBG/SMEBU-COTTON GIN/28/2018 - 19Date: Sat 6 Oct 2018 – Product Codes

Page 17

DOCTOR PLUS & MEDICAL EQUIPMENT FINANCE SCHEME

SCHEME DOCTOR PLUS Medical Equipment Finance Scheme

TARGET GROUP

Medical practitioners of Allopathicdiscipline, promoters of Allopathichospitals and nursing homes,pathological clinics, polyclinic, X-raylabs; any activity of allopathicdiscipline.

Nursing Homes• Diagnostic Centers and Pathology Laboratories• Eye Centers, ENT Centers, Small and Medium size specialty clients like skin clinics, dental clinics, dialysis centers,endoscopy centers, IVF centers etc.• Medical Practitioners

PURPOSE To finance qualified medical practitionersFor buying equipments (For dentists, the loan also covers dental implants besides equipments; For orthopaedists, the loan also covers various replacements/ implants for hip/ knee/ shoulder/spine etc.)Setting up clinic, nursing home, pathology labs, drug store, ambulance, computers, vehicles, etc.Expansion/ renovation/ modernization of existing premises

For purchase of equipment & funding of ancillary equipment.Equipment Covered :All Medical Equipments includingancillary equipments may be coveredunder the product.

FACILITY Medium Term Loan & Cash Credit Term Loan

ELIGIBILITY � Individuals/ Partnerships/ Corporates/Trusts (with powersto borrow)� Promoters should be registeredpractitioners and should possessminimum qualification to practice inAllopathic discipline such as MBBS,BDS, etc.

• Individuals, Partnerships, Corporate, Trust & Societies• ITR is mandatory in all cases• Applicant should have minimum 3 years of operations of the diagnostic center, pathological lab, hospital, nursing home, etc. irrespective of constitution.• Should have the required approvals/registrations from thestatutory/regulatory authority.• Should have tie-up with/employed qualified doctors

ASSESSMENT OF LIMIT

&QUANTUM OF LOAN

In Metro/Urban/other centers:For Corporate/Partnerships/Individuals: From Rs. 10 lacs to Rs. 5 crores.The proposals falling under the purview of StandUp India Scheme (SUI) and PradhanMantri Mudra Yojana (PMMY) will be processed as per the applicable norms under these schemes. Such proposals willnot be covered under DoctorPlus Scheme.

Minimum: Above Rs. 10 lakhsMaximum: Up to Rs. 20 crores

RCCC or higher committee has the power to enhance this limit.

It must be ensured that ancillary equipment is only used for purposesconnected with the main activity and cost should not be more than 10% of main equipment (for which financing is done).

Page 18

SCHEME DOCTOR PLUS Medical Equipment Finance Scheme

LTV/MARGIN

Margin at 15% uniformly Margin @ 15% uniformly.

SECURITY Primary : Hypothecation of Assets fin.Collateral : No tangible collateral securityfor loan amounts upto Rs. 2crores: They are to be coveredunder CGTMSE. 50% of CGTMSEfees will be borne by the borrower.For loans above Rs. 2 crore and uptoRs. 5 crores: Minimum 25% tangiblecollateral security and Personal guarantee of promoters.

Primary :Hypothecation of the assets fin.

Collateral Security : Nil collateral. To be covered under CGTMSE. Fee to be borne by borrower. However, If the borrower is not willing to pay the guarantee fee or not willing to cover the exposure under CGTMSE, then Min. 25% collateral security needs to be obtained.

• For loans above Rs 2 crore and upto Rs. 20 crores:Minimum 25% tangible collateral and personal guarantee of promoters.For individual/ proprietary concerns, other than doctors, third party guarantee is mandatory.

INTEREST RATE

NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

PERIOD/REPAYMENT

Minimum DSCR 1.5:1Maximum period of 7 yearsincluding moratorium period.Maximum moratorium 12months

• Term Loan: Loan is repayable in 3-7 years (including moratorium period of 6 months)

REVIEW/ RENEWAL

As applicable to Normal Term Loans As applicable to Normal Term Loans

CRA RATING Units with CRA rating of SB9 and abovewill only be considered

Applicable. Minimum CRA rating SB 9.

INSPECTION Half-yearly inspection Half-yearly inspection

DOCs As per SME documentation As per SME documentation

REFERENCE NBG/SMEBU-DOCTORPLUS/85/2016- 17 Monday,February 06,2017

NBG/SMEBU-DOCTORPLUS/75/2010 – 11 Saturday,December 11,2010.

NBG/SMEBU-SBI MEDICA/84/2016 -17 Monday,February 06,2017

NBG/SMEBU-SBIMEDICA/17/2015-16 dtd. 27.05.2015

NBG/SMEBU-SBI MEDICA/37/2018- 19 Date: Tue 13 Nov 2018 - Modifications

SME Manual 31.12.2017

Page 19

LEASE RENTAL DISCOUNTING (LRD)SCHEME(Circular No. : CCO/CPPD-ADV/152/2016 – 17 Monday,March 06,2017)(CCO/CPPD-ADV/6/2017 – 18 Monday,April 10,2017 – CRA Threshold)

PurposeTo meet borrower’s liquidity mismatch (Proceeds of loan amount not to be used for any speculative purposes, whatsoever, including speculation on real estate and equity shares). A Certificate regarding the end use of funds should be obtained stating that the funds will be utilised for the purposes required in the usual course of business and not utilised for speculative, real estate purposes.

Eligible customersi. Owners of residential buildings and commercial properties, which are to be rented or already rented to MNCs / Banks/ Large & Medium size Corporates / Government Offices (both Central and State)/reputed Public bodies such as Municipal Corporations etc. However, the properties should not be or have been leased to Social Infrastructure projects such as Schools, Colleges, Orphanages, Hospitals, Old age homes, Nursing homes etc.ii. KYC of lessees and information by enquiries to be obtained before taking exposure.iii. If the lessee is an Associate Concern of the lessor, Loan should not be sanctioned. No relaxation is to be permitted in this regard.iv. The extant instructions on threshold limits prescribed by CRMD for new connections(presently SB-08 and better) /enhancements (presently SB-10 and better) for Commercial RealEstate will apply to Loans under this scheme. ECR of the borrower is not mandatory.

Nature and location of propertyi. SARFAESI compliant properties located in Metro / Urban / Semi-Urban centres only. However,the properties should not be or have been leased to Social Infrastructure projects such as Schools, colleges, orphanages, hospitals, old age homes, Nursing homes etc.ii. Plan approval, completion certificate/occupancy certificate/building use permission or equivalent certificates, other related permissions for the property from appropriate authority need to be in place.iii. The property should not be land locked and should have a proper approach.

Appraisal & Assessment Form S / Form DDS as applicable to be used for appraisal.Upto Rs.50 cr: Eligible loan amount may be determined considering the residual lease period including the period covered under one renewal as per Registered Lease Deed or loan tenor, whichever is less, in any case, not exceeding 10 years. Above Rs.50 cr:Eligible loan amount may be determined considering the lease rentals for the residual lease periodincluding the period covered under the renewal clause as per Regd. Lease Dead or loan tenor, whichever is less, in any case, not exceeding 12 years. Maximum period of 15 years may bepermitted in select cases. Normally step up rental should not be considered. However, in select cases,the sanctioning authority may permit considering step up rental on merits.

Loan amount Minimum MaximumNBG Branches Rs.10.00 Lacs. Rs.50.00crores.MCG Branches Above Rs.50.00 crores. Rs.500.00 crores.

Tenor of loan Upto Rs.50 crore: Maximum 10 years or residual lease period considered for assessment of the loan, whichever is less. The residual lease period should not be less than 2 years.Above Rs.50 crore: Maximum 12 years or residual lease period considered for assessmentof the loan, whichever is less. The residual lease period should, however, not be less than 2 years.Maximum 15 years in select cases may be permitted where 15 years lease period is considered in assessment of loan.

Page 20

LRD Scheme (Contd...)Scale of financei.Lowest of: a. 95 % of Net Present Value (NPV) of net rent receivables. NPV to be calculated on one year MCLR.ORb. 70% of realizable value of the property mortgaged (as per latest valuation report of the Bank’s approved valuer).Lowest value amongst the two valuation reports (wherever applicable) to be considered.ORc. Upto Rs.50 crore:70% of net rent receivable for the residual lease period including the period covered under one renewal or loan tenor, whichever is less in respect of other properties and 50% of net rent receivable for the residual lease period including the period covered under one renewal or loan tenor, whichever is less in respect of malls, in any case, not exceeding 10 years. Above Rs.50 crore:75% of net rent receivable for the residual lease period including period covered under renewal clause or loan tenor, whichever is less in respect of other properties and 60% of net rent receivable for the residual lease period including period covered under renewal clause or loan tenor, whichever is less in respect of malls, in any case, not exceeding 12 years.

DSCRUpto Rs.50 crores: Minimum 1.20 for the Loan (Project DSCR) should be insisted upon.Above Rs.50 crores: Minimum 1.10 for the Loan (Project DSCR) should be insisted upon.

Nature of facility Term Loan

Rate of interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018Primary Securityi. Assignment of rent receivables. Registered Power of Attorney with the lessee must be obtained in states where registration is mandatory. In other cases, notarized POA to be obtained. Tripartite Agreement may be obtained wherever possible.

Collateral Securityi. Equitable Mortgage on building against the rentals of which the loan would be sanctioned orany other acceptable property of similar value. The realizable value of property to be mortgaged should be at least 143% of the loan amount.ii. No relaxation should be permitted in this regard.

Guaranteei. In case of Partnership Firm /Unlisted Company, personal guarantee of the Partners / Directors to be obtained. Personal guarantee of Promoters not required for BBB- and better rated borrowers and for listed Public Limited Companies. However, Escrow account (TRA) should be maintained with the Bank.

Inspection Quarterly.

Review Annual.

CRA thresholds for ICRE & OCRE as per CRMD guidelines will apply to this scheme. ECR of the borrower is not mandatory.

Page 21

SBI CONSTRUCTION EQUIPMENT LOAN & FLEET FINANCE SCHEMESCHEME SBI Construction Equipment Loan SBI FLEET FINANCE SCHEME

TARGET GROUP

Existing Construction Equipment Owners & Contractors� Other Captive users: Mine owner, port operatorIndividual/Proprietor/ Firms/Companies/Trust/Societies

Existing Fleet Operators& Captive Users, Business Enterprises,contractors, Mine owners.

ExistingIndividuals/firms/companies/trusts/Institutions/Associations

PURPOSE Term Loan for purchase of new Construction Equipments.(Mining, Material Handling, Earth Moving, etc.)

To finance new vehicles (Small, Light, Medium, Heavy CommercialVehicles, Passenger Vehicle). E.g. trucks/tankers/ trailers/ tippers/buses/luxury buses and passenger vehicles etc.

FACILITY Term Loan� Dropline Overdraft facility

Term Loan

ELIGIBILITY Minimum 3 years of experience in business.� Income Tax assessee (Personal & Business).� Satisfactory track record and has never been in NPA /SMA2 category.� CRA of SB 9 and above.� Unit should have recorded profit during the last FY.� Gross DSCR for last year is above 1.25 %, in case of existing units.� Retail CIR score of each of the promoters is above 680.� Multiple Banking arrangement permitted, subject to compliance with the norms applicable to MBA.� Average of Sales/Revenue growth for last 3 years is positive.� Percentage of default in Current Balance over Total Current Balance reflected in commercial CIR is below 10%.� The customer will not be eligible, if more than 2 instances of 30 days past due in last 12 months appear in the CIBIL-CIR. (Not applicable, if Commercial CIR is not appearing in CIBIL records).

Minimum 3 years of experience intransport industry and other businesses• Fleet operator having existing fleet of minimum 10 vehicles• Requirement of minimum 10 new vehicles or minimum loan amountRs.50 Lacs• Transport operators holding national/ state route permit and othernecessary permits/license/approval.• Satisfactory track record with existing banks/FIs• Income Tax Assesse (personal & Business)• Average Gross DSCR: minimum 1.50.

• Borrower has to get min 50% score under scoring model to be eligiblefor SBI Fleet Finance Scheme.

ASSESSMENT OF LIMIT

Term loan as per the requirement.

Disbursements to be made withinthe 6 months from the date ofsanction.

Form S-2 (for Rs.25 lacs to Rs.1Cr) and form DDS (for Rs.1 crand above) Cir No. NBG/SMEBU-SBI FLEET/61/2013 - 14Tuesday,December 10,2013

QUANTUM OF LOAN

Minimum : above Rs.10 lacsMaximum: up to Rs.10 cr

Minimum Rs.50 lacsMaximum Generally upto Rs 10 Crores.

Page 22

SCHEME SBI Construction Equipment Loan SBI FLEET FINANCE SCHEME

LTV/MARGIN

Margin- Minimum 10%, wherecollateral is available.Margin- Minimum 15%, where nocollateral is available (i.e.CGTMSE/CGSSI covered loans)

Margins are linked to the scores under Scoring model.Scores between 50% to 60% Above 60%For cost of Chassis 5% 0%For cost of Body 45% 40%For fully built model 10% 5%Other expenses Min 50% Min 50%(Road Tax + Insurance + Registration)

SECURITY Primary Security• Hypothecation of the Equipment (s) financed by the Bank. Collateral Security• Minimum 25% collateral.(tangible collateral may include tangible collateral and unencumbered existing construction equipments) (current resale value to be taken)Guarantor• For individual/proprietors, third party guarantees to be insisted upon.• In other cases: Personal Guarantee from the Promoters/Partners /Directors of the Unit will be mandatory.

Primary SecurityHypothecation of the vehicles financed.Collateral SecurityUp to Rs. 1 Cr: No collateral security. Loans will be covered under CGTMSE.Above Rs 1 Cr: Min 20% tangible collateral including unencumbered vehicles in the existing fleet (current resale value to be taken)Guarantor : For loans up to Rs.1 Cr covered under CGTMSE: No Third Party Guarantee. In other cases: Personal Guarantee from the promoters/ Partners/Directors of the Unit will be mandatory. For proprietary concerns, third party guarantee is mandatory.

INTEREST NBG/SMEBU-SBI-CEL/17/2018 - 19 dt 07.08.2018PERIOD/REPAYMENT

Tenor of the loan should not be more than 5 years and no deviation in this regard to beentertained • Repayment in EMI basis.

Scores between 50% to less than 60%: Max 60 months. Scores 60% and above: Max 66 months Repayment in EMI basis.

CRA RATING Pricing is not linked to CRA but pricing matrix as per Circular as Annexure-I

Interest rate is not linked to CRA.The ‘Credit Scoring Matrix’ Annexure A.

INSPECTION Half Yearly. In case of irregularity, inspection frequency may be increased.

Quarterly (in case of irregularity frequency should be increased)

REFERENCE NBG/SMEBU-CONSTEQUIP/58/2014 – 15 Friday,December 26,2014

NBG/SMEBU-SBI-CEL/9/2017 - 18Date : Tuesday 23rd May 2017 – Product Revised guidelines

NBG/SMEBU-SBI-CEL/17/2018 - 19 Date: Tue 7 Aug 2018 - Modifications

NBG/SMEBU-SBI-CEL/56/2018 - 19 Date: Thu 17 Jan 2019 – Auth. Scale IV above

NBG/SMEBU-SBI FLEET/61/2013 - 14Tuesday,December 10,2013NBG/SMEBU-SBI FLEET/71/2013 – 14 Tuesday,January 28,2014 – ClarificationNBG/SMEBU-SBI FLEET/79/2013 - 14dt 13.02.2014 - ModificationsNBG/SMEBU-SBI FLEET/44/2014 - 15dt 07.11.2014 - ModificationsSOP for Fleet Fiance SchemeFLEET FINANCE SCHEME – TIE-UPDisc Powers Cir dt 28062017Tie Up Coca Cola 150119

Page 23

E-DFS (ELECTRONIC DEALER FINANCE SCHEME)(NBG/SME/SCFU-e/101/2016 – 17 Saturday,December 31,2016)

(NBG/SMEBU-E/62/2010 – 11 Wednesday,November 10,2010) (SOP)NBG/SME/SCFU-e-DFS/35/2017 – 18 Date : Tuesday - 01st August 2017 & 44 dt 05.08.2017

Product Review Cir dt 11122018 EDFS – SOP 16022019

A scheme for financing the purchases of the Dealers from the Industry Majors (IMs) has been developed and named as Electronic Dealer Financing Scheme (e-DFS). The scheme is in line with market requirements, backed by a strong web based platform which ensures automatic remittance of funds to the Industry Majors account from the e-DFS Cash Credit account of the dealer, exclusively available to the Industry Major for the supplies made to the dealer i.e. Inventory Funding to the dealer. This system facilitates monitoring the end use of funds and follow up and monitoring of the account by the branches, by providing MIS to the branches.

The Bank has formed two verticals, namely Supply Chain FinanceUnit(SCFU) under SME BU, Corporate Centre and Transaction Banking Unit(TBU) under Corporate Banking Group, Corporate Centre to focus on financing the supply chain of the Corporates.

Role of SCFU:� Marketing of the schemes to reputed Industry Majors� Coordination with Relationship Managers in CAG, MCG, NBG and officials of CINB for various related activities � Handling IT and Operational issues

Role of TBU� Identification of potential Industry Major from CAG/MCG and advising to SCFU

No. Steps Primary responsibility 1 Tie-up process between SBI & Industry Major SCFU team, Corporate Centre 2 Leads sharing with Circles SCFU team, Corporate Centre 3 Mapping of Leads with Branch / SMEC / RMSE /

RMME Nodal Officer, LHO

4 Uploading of Leads on Vijay Path Project Vijay Team, CC 5 Processing and Submission of Proposals for sanction Branch / SMEC / RMSE / RMME 6 Dealer addition & IM mapping on the INB platform SCFU Branch 7 Transaction (Pull and Push Model) IM, Dealer 8 Monitoring and review SMEBU LHO & Corporate Centre

Team Tie-up process between SBI and Industry Major (Work Flow)

1.SBI SCFU Team at Corporate Centre (Vertical Headed by Deputy General Manager) meets Industry Major (IM) for understanding the business of IM and explains the e-DFS scheme including the IT requirement involved 2. Terms and Conditions for the tie-up, e-DFS agreement and format of Comfort Letter is shared with IM, customized as per their requirement (Credit Period/Grace period and Push/Pull model differs as per the requirement of the company) 3.After acceptance of terms and conditions, SCFU Team at Corporate Centre takes approval from MD (NBG) for entering into a tie-up 4.Post approval, e-DFS agreement is executed between SBI and IM at Corporate Level. Subsequently, e- circular is issued on intranet for information of all the Administrative office and Branches pan India.

Pricing : NBG/SME/SCFU-SCF/65/2017-18 dated 22.09.2017 NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018Mandatory Mapping of Dealers cir 25022019

Page 24

e-DFS (Contd....)\

Page 25

Account opening and other instructions to the Branches under (e-DFS)An e-DFS Cash Credit Account will be opened after completing the post sanction formalities. This account will be available for operations to the Industry Major for supplying the Inventories to the dealers in the case where the IM uploads the invoice details as per the process flow (PULL MODE) or the dealer to remit the funds to the Industry Major for the value of the indent placed with the IM (PUSH MODE). No cheque book should be issued to this account. No transaction should be originated in this account by the branches. Tie-ups with Industry Majors (IMS)

Arvind Ltd HNGFGL Ashok Ley Amar Raja Bajaj Auto Pvt Ltd Beri Udyog Ltd

Century Ply Boards Coca Cola CEAT Tyres Dell Int DFPCL Daimler Exide Escorts Maruthi

Chevrolet SCJPPL Colgate Palmolive FCA Fiat Jyothi Strips Godrej & Boyce

Greenply Industries Honda Hyundai(CE) HPCL (Lubricants) ITC Ltd

JCB India JK Paper Jindal Pipes Ltd NFL Jindal Stainless Ltd Jindal Steel & Power

Cummins India Ltd Lava International Ltd LG Elec. Renault Maharashtra Seamless

Nissan Intex MCEB Philips Sintex Larsen T Rallis India Ltd PIIL RIL RIL (Petroleum)

Reymond Ltd GSFCL Samsung 211117 220419 Senco Gold ADANI Solar Industries

Sony 040718 180718 Syntex Industries Tata Bluescope Steel L Tata Chemicals Ltd

Tata Motors PV Opal Tata Steels Ltd HPL Tata International Ltd Titan Titan Watches

TVS 030318 060318 150419 Well Known Polysters Wipro Ltd Force motor Swal Corp Ltd 120517

UPL Ltd – 1205 & 2509 HPCL(Petroleum)170717 Patanjali Ayurved 180517 IOC Ltd (LPG) 220517

HUL Relaxo Hindalco IOCL (PD) SAIL 1 SAIL2 Tata Motors CV Mahindra BCPL TVS200317 AIG

Wonder Cement APL HCEIPL ISUZU Syskaled JISL TCL IOCL IOCL HPCL BPCL 1407

Nilkamal BPCL cenco Gail IFB Suguna Ford Senco TSL Essar Yamaha FCA IT Voltas

Whirlpool BPCL (Lub) MDFVPL RRKL SHELL Samsung MDDS Marico Emami Emami Agro

Suziki Deepak Ferti Daikin Kajaria PCJL ANMOL VGAURD DENIM Tata Steel

Palmolive Adani GSL Toyoto JCB Wockhardt SaintGobain Pepsico Tata Int PMFL

Brahmaputra Chambal Godrej Animal Crop TBSL Xiomi VST Tractors Volvo Tata Motors (CV)

PLIPL PANASONIC Mahindra (Automotive) ACEL AEPL BPCL JYOTHI STRIPS PIAGGIO

LAVA Kirloskar HPLC (LPG ) Eureka OIL IFBIL IOCL CFCL RELAXO SMART CHEM

Cummins Bajaj Elec. Ajax KEIIL SYSKA BPCL (LPG) CGPISL BIRLA CERA IFB

VOLTAS TVS SR KONNECT ICHAKRA DFL FINOLEX GULF RELIANCE CEMENT

Polymer PC Jewellers IOCL HONDA Bajaj Auto HPCL P-Dealers Valvoline JKLCL IPL

VISHAL JSW Steel Everest PVPL Larsen&Turbo RELIANCE PETROLEUM SYNTEX BERGER PAINTS

Dhanuka Canon HSIL Ashirwad p ipes Voltbek

Hindustan sanitary HUL WPL SIEPL SGFIL

Daimler Sri Lalitha TAFE LTD 01 0 2 I 2 I 4

INT. TRACTORSSAVEX MINDA

HPCL Fin Pathanjali Samsung 2 Polycab RENAULT SML ISUZU PHILIPS Health Care

Nayara Energy VECV TATA MOTORS RUCO MG Motor L&T Valves KIA Motors JSPL

GCFFML APL APOLLO BOSCH BHUSHAN BERI Century Textiles Anytime Fitness AGIL

Letter of comfort - March 23,2017 NPA Tracking Revised Guidelines - Dec 31,2016

Concessions in pricing - March 20,2017 Collateral for Limits 20 Cr above – 27032018

Realignment with PMMY - January 21,2017 Review/Renewal Guidelines - March 27,2017

Rate of Interest Circular - January 24,2017 Dealer ship verification with IM - 26.12.2018

TMTL 1 2 UNIVERSAL CABLES HML 1 HML 2 SURYA ROSHINI 1 2 KADAM INDIA

Page 26

M-DFS (MORTGAGE DEALER FINANCE SCHEME)(NBG/SME/SCFU-SCF/44/2012 – 13 Thursday,January 31,2013 – Scheme Circular)

(NBG/SME/SCFU-SCF/45/2012 – 13 Friday,February 08,2013- Assessment of Facility)(NBG/SME/SCFU-SCF/41/2013 – 14 Thursday,October 31,2013 – Modification in Facility) NBG/SME/SCFU-SCF/25/2017 – 18 Date : Saturday 01st July 2017 – Scheme modifications

Purpose : To provide hassle free finance to authorized exclusive Dealers/stockiest/distributors/franchisees (hereinafter called “dealers”) of Industry Majors (IMs) for purchase of Inventory who are willing to furnish Collateral Security of adequate value.

Eligibility All Authorized dealers (Tie-up not necessary)

Amount of facility : Minimum Rs. 0.50 Cr Max: Rs. 5Cr. Discretion to increase the Max. Limit to Rs. 10 Cr will be with Circle CGM

Type of facility Cash Credit

Assessment of Facility : A. Projected Average monthly purchasesB. Projected Level of SundryCreditors (Days)C. Credit Period required by the DealerAssessment of Limit: A x B OR A x C (whichever is lower)*(Maximum level of Sundry Creditors or Credit Period required is 90 days)

*(Rate of interest will be charged on the projected level of sundry creditors or credit period required by the dealer i.e. B or C, whichever is taken into consideration for assessment of limit and it has to beincorporated in the Input Sheet)

Margin 10%

Security : Primary: 100% Hypothecation of stocks financed and receivables. Collateral: Minimum 75% Tangible Collateral Security (realizable value) in the form of Land &

Building / Cash Collateral / Bank’s Approved securities (Realisable value of the property will be decided on the basis of the valuation report, which is not more than three months old, of at least two approved empanelled valuer) (In case the collateral security is owned by a third party, the guarantee of the owner of the security has to be obtained)

Guarantee: Personal guarantee of the directors / partners / promoters to be obtained.

Rate of Interest : Dealer (with Multiple IMs) who is our customer for e-DFS for one IM at least, withsatisfactory conduct of account. - MCLR Tenor 1 Year + 1.00%Dealer for MDFS scheme only - MCLR Tenor 1 Year + 1.60% Revised Interest Structure wef 01042018

Penal Interest : After the Credit Period, till the account becomes active. 4 %

Disbursement For m-DFS account disbursement can be made only to IM account, which will be pre-mapped through CINB.

Page 27

MDFS (Contd...)Repayment The dealer has to make repayment within the agreed credit period. In case the dealer fails to repay within the credit period alert will go to the dealer through SMS. MIS will be sent through e-mail to all the concerned officials. Account of the dealer will be inactivated after agreed period or 90 days from the date of debit, if unpaid. Circles to arrange for visit to the dealers for ensuring level of activity, availability of stocks etc. Status of the account can be converted into active subject to recommendation of Controller / SMEBU Head incorporating comments on last inspection held, availability of adequate primary security to cover the exposure and conduct of account. Dealers will have the option to repay the outstanding invoices using Multiple Channel Remittance mode of Cash/Cheque/RTGS/Funds Transfer.

Documentation With Dealers � Standard SME documents as applicable � An agreement to map the IM account and operating the loan account through CINB will be executed by the Dealer

Stock Statement : Quarterly. However stock statement for the month of February or March compulsory. As soon as account becomes inactive, stock statement to be taken monthly till it becomes active.

Inspection Quarterly inspection. However, immediate inspection to be carried out on account becoming inactive and monthly till account becomes active.

Renewal/Review : Sanction valid for 12 months, to be renewed thereafter.

Operation of the account� m-DFS account will be opened in CBS under product code of e-DFS.� Dealer input sheet will be sent to SCFU operation for mapping the dealer in the CINB.� After mapping of account, the dealer can operate the m-DFS: Jan’13m-DFS account and remit money to IMs (pre-mapped) account for purchase of goods.� System will track each debit for the due date and if repayments are not there, it will start sending alerts about the overdue.� All repayment will be settled on FIFO basis.� Alerts on due date for repayment with reference number and amount to be repaid will be send through SMS. E-mail will be sent to all the concerned 15 days in advance and will continue till the repayment is effected.� If any invoice becomes overdue, immediately the branch will be advised by email and sms including the controller for initiating follow up action.� Dealer and the branch will be provided interface in INB to track all the remittances made on a regular basis.

Others � Credit Rating Assessment to be done for the Dealers. But, pricing will be as per the scheme.� Take over norms as applicable to e-DFS accounts� Credit Information Report (CIR) should be obtained on IBA format for satisfactory conduct of the account from the existing Banker.� The m-DFS account would be a dedicated account for this purpose only. No Cheque Book will be issued in this account. For day-to-day operations a separateCurrent account will be maintained by the borrower.� 4 PDC to be obtained (to be used in default or otherwise)� Advances would be sanctioned subject to the condition that the applicant would be eligible for finance under the Bank’s extant instructions.� NPA classification and follow-up will be as per Bank’s extant policy.Stock Audit - As per the Master Circular CCO/CPPD-STOCK AUDIT/42/2017 -18 Date : Friday - 14th July 2017.. Periodicity- Yearly

Page 28

DROP LINE OVER DRAFT FACILITY FOR DEALERSCOVERED UNDER E-DFS & M-DFS

(NBG/SME/SCFU-SCF/42/2013 – 14 Thursday,October 31,2013)

Presently, we are providing working capital facility for the dealers to procure inventory from Industry Majors (IM) under e-DFS & m-DFS. The loan account under both the scheme is pre-mapped to IM account and we do not issue cheque book facility to the e-DFS account. Therefore, the dealers can utilise this account only for procuring inventory from Industry Major (IM) and the amount is to be settled within the agreed credit period.However, apart from procuring inventory, the dealers need funds for expenses like spares, demo cars, body shop claim from Insuranceftp://10.10.63.63/SBLC AURANGABAD TRAINING MATERIAL 2017-18/SME ASSET PRODUCTS/EDFS OVERDRAFT FACILITY 31102013.pdf companies, consumables, payment of salary / taxes and other incidental expenses related to dealership business, which is presently being met through cash credit account with SBI / Other Banks. As such, entire need of the dealer is not covered under e-DFS / m-DFS scheme and many of the existing dealers on board are availing cash credit from other Banks.To cater to the above needs of the dealers under e-DFS & m-DFS as also toincrease customer stickiness, a new product named drop line overdraft to the tune of 25% of the existing e-DFS / m-DFS limit, subject to a maximum of Rs.5.00 Cr, repayable in a maximum of 36 months has been approved by the competent authority.

The salient features of the Scheme are as under:

Target group : Existing & new e-DFS and m-DFS customers

Eligibility Dealers who availed of a limit of Rs.100 lakhs and above under e-DFS & m-DFSPurpose For purposes other than covered under e-DFS like spares, demo cars, consumables, payment of salary / taxes, body shop claim from Insurance companies, improvement in ambience of showroom and other incidental expenses related to dealership business.

Type of Facility Drop line Overdraft

Nature of Facility Fund Based

Loan Amount 25% of the existing e-DFS/m-DFS limit subject to a maximum of Rs.5 Cr

Repayment Maximum of 36 months

Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018Security : Primary: (for both e-DFS & m-DFS accounts) Hypothecation of assets created out of this facility, wherever applicable.• Self certified statement of assets created / expenses made out of this loan is to besubmitted quarterly. The Relationship Manager is to peruse the statement and satisfy thegenuineness of the details mentioned in the statement.

Collateral: For e-DFS accounts • Minimum 25% of the loan amount.• The collateral can be by way of land & building property• The property should be SARFAESI compliant • If the security owned by third party, guaranteefrom the owner of the property is compulsory And• Personal guarantee of the promoters/Partners / Directors

Page 29

OD for m-DFS & e-DFS accounts (contd..)Security : For m-DFS accounts• No additional collateral is necessary, provided the existing collateral for the m-DFS account is150% or more • If the collateral is less than 150%, additional collateral security to that extent is to be provided. • The collateral can be by way of land & building property.• The property should be SARFAESI compliant• If the security owned by third party, guarantee from the owner of the property is compulsoryAnd • Personal guarantee of the promoters/Partners / Directors Valuation of property As per Bank’s extant instructions. Fresh valuation of property is to be carried out every 3 years and any shortfall to be topped with.

Inspection Quarterly. However, immediately on the account becoming Irregular.

Sanctioning authority As per delegation of powers for sanction of advances.Total indebtedness is to be reckoned for arriving at the sanctioning power.

Documentation Arrangement letter, DP Note, DP Note Take Delivery letter and SME documents as applicable

Review Annual review during renewal of e-DFS limit. During the review restitution of the eligible/original limit can be made, subject to satisfactory conduct of the account.

Operation The account will be opened as overdraft account Cheque book will be issued. The DP will be reduced on monthly periodicity The dealer can operate within the DP. Pre-closure permitted without any penalty.

The original/ eligible limit can be restored during the renewal of the e-DFS / m-DFS limits.Cash pick-up facility Upto Rs. 2 lakhs per day is free. However this facility should be offered to CAG/MCG customers with prior consultation with CMP.

Other features:POS / INSTA DEPOSITCARD Free. To be offered by the branch at the time of opening of the account. Cash deposit in home Branch Unlimited, free, No chargeCash deposit in Non-home Branch Free upto a Max limit: Rs.2,00,000/- per day, uptoRs.5,00,000/- for Mahindra & Mahindra dealers .Draft / Bankers’ cheque Free Outstation cheque collection 25% of the normal chargesMulti city cheque facility Issue charges – Free, Corporate Internet Banking AvailableStanding Instructions Free Issue of Duplicate statement FreeIssue of cheque books (other than multicity cheques) FreeCar loan Pre approved car loans for promoters

Page 30

E-VFS (ELECTRONIC VENDOR FINANCING SCHEME)NBG/SME/SCFU-SCF/20/2017 – 18 Date : Monday 12th June 2017 – Scheme Modifications

(NBG/SMEBU-EVFS/21/2008 – 09 Thursday,September 11,2008 – Scheme Circular)(NBG/SME/SCFU-SCF/4/2015 – 16 Saturday,April 25,2015 – Notional Limit)

Electronic Vendor Finance Scheme (eVFS) – Financing against receivables of the vendor.The Bank has developed a scheme for financing the receivables of vendors of reputed Industry Majors (IMs) and the scheme is in line with market requirements, backed by strong IT to speeden the process of financing the vendors. It has been decided to rename the existing Express Vendor Discounting Scheme (EVDS) as Electronic Vendor Financing Scheme (eVFS).

It has further been decided to make a dedicated Supply Chain Financing Unit (SCFU) under the control of SME BU at corporate centre Mumbai. The SCFU will broadly look into the key areas of Operations and Marketing. The operation wing of SCFU i.e. SCFU (Operations) will be located at Shivsagar Branch Worli, Mumbai (Branch Code No 11689) while the marketing wing of SCFU (Marketing) will be located at SME BU corporate centre Mumbai. Both these wings will be under DGM SCFU. The task of identification of new IMs and tying-up with them to finance their vendors will be the role of CAG/MCG. In this process SCFU (Marketing) coordinate with CAG/MCG.

Role of SCFU:The SCFU is located in SME BU corporate centre, Mumbai. The role of SCFU will be divided mainly into two parts- Operations and marketing. Both these wings will be under DGM SCFU.

Process Flow for E-VFS (Vendor Exposure): Sanction of limits to Vendors at Branches/SMECCCs:

1. SCFU will provide a list of vendors to the Nodal Officers posted at concerned LHOs along with check list of documents required from the vendors.2. Vendors must be having Current Account or availing credit facilities from SBI.3. Due diligence/KYC verification of vendors will be done by the RM (ME)/ RM (SE) /SMECs / Branches (non BPR Centre).4. If the vendors are having no relationship with the Bank then Current Accounts of them will be opened at the Branches of their choice.5. Check list for sanctioning of e-VFS limit will be provided to the vendors.6. Sanction proposal will be processed as per standardized simplified Appraisal Format as applicable for e-VFS.7. Sanction proposal will be put up to the Sanctioning Committee as per delegation of financial powers and Control thereof will be put up to the next higher Sanctioning Committee as applicable.8. After sanction, Sanction letter will be shared with the Vendor for execution of documents.9. Simplified documentation applicable for e-VFS will be done at the Branches/SMECs. The documents to be taken:a) e-VFS application Form (format enclosed), Account opening forms as per KYC norms etc.b) DP note take delivery Letter.c) Bi- Partite Agreement (format enclosed)d) Duly accepted sanction letter (format enclosed)10.E-VFS account Cash Credit (Clean) facility under e-VFS product Code will be opened at the Branches/SMECCCs.11.Duly filled in Vendor Input Sheet will be emailed/Faxed by the Branches/SMECs to SCFU Operation Branch, Andheri (East), Mumbai (Code- 11689)12.Maintenance of details of Notional limit sanctioned to IM and cumulative limits sanctioned to vendors will be done at SCFU.

Page 31

e-VFS (Contd..)

A) Vendor Exposure variant: Broad Guidelines for Eligibility for IM for e-VFS Tie up :

Existing borrowers of Bank with continuously making profit for the last three years Minimum Turnover Size for IM: Rs. 500 Cr and above. External Rating: A and above / Internal Rating SB-7 and above (If SBI customer) Industry Scenario to be considered / RMD guidelines will be referred Any deviation in above parameters to be approved by MD (NBG)/MD (CBG). Moderately Negative / Negative industry outlook for Industry Major (IM) to

be considered, as deviations, which may be approved by MD (NBG)/MD (CBG). IMs total vendor base at least 50 Outstanding Sundry Creditors not to exceed three months purchase Satisfactory conduct of account Good track record of payments suppliers/vendors

Nature of facility : Cash Credit (clean)

Nature of exposure : Notional exposure is taken on the IM. However the actual exposureis on the vendors by way of ‘recourse’.

Sanction of notional limit to IM : Aggregate notional limit on the IM is taken by CAG/MCG/NBG from respective sanctioning committee. Now the sanction of notional limit is vested with respective MD (NBG)/ MD (CBG)/ DMD & GE (Mid Corporate) as the case may be, vide Circular No.: NBG/SME/SCFU-SCF/4/2015- 16, dated 25.04.2015

Quantum of limit : Aggregate limits (Notional Limit) on all the vendors of IM will be sanctioned by the respective authority. Notional limit is arrived at on the basis of annual credit purchases made from the vendors to be covered under e-VFS and also the agreed credit period.

Sanction of limits to vendors : As majority of the e-VFS proposals individually fall within the discretionary powers of CCC-II & CCC-I as laid down in Delegation of Financial Powers, It is approved to decentralize the sanctioning process of e-VFS limits to the respective Credit committees as e-VFS is a risk mitigated and well established product. It is approved to cover the sanction process of e-VFS under LOS/LLMS module.

Credit Rating of vendors : External Rating and CRA of the IM is considered for the purpose where the vendors are unrated.

Recovery of interest : Interest could be paid by IM/vendor/by both IM and Vendors on sharing basis as per the tie up.

Security : This is an unsecured advance

Repayment : Primarily - IM will agree to pay each receivable on due date.In case IM fails to repay on due date, Bank will have recourse to vendor.

Limit Processing fee : Above Rs. 10 crs Rs. 50,000, Above Rs. 5 crs to upto Rs. 10 cr Rs. 35,000Above Rs. 1 crs to upto Rs. 5 cr Rs. 25,000, Above Rs. 50 lacs to Rs.1cr Rs. 15,000, Upto 50 lacs -10,000

Page 32

e-VFS (Contd..)B) I M Exposure variant: Broad Guidelines for Eligibility for IM for e-VFS Tie up :

Existing customers with acceptable financials/performance indicators. These limits will be separate from the Working Capital Finance This is additional exposure outside ABF Minimum Turnover Size: Rs.500 Cr and above. Internal Rating SB-7 and above (If SBI customer) Industry Scenario to be considered / RMD guidelines will be referred Any deviation in above parameters to be approved by MD (NBG)/MD (CBG). Moderately Negative / Negative industry outlook for Industry Major (IM) to be considered, as

deviations, which may be approved by MD (NBG)/MD (CBG). External Rating of A or above by CRISIL or equivalent ratings from other approved credit rating

agencies. (If not an SBI Customer)

Nature of facility : Cash Credit (Clean/Secured) Nature of exposure : Against IM Quantum of limit: Limit is sanctioned as per Credit Rating ECR and CRA of the IM are considered before deciding exposure.Recovery of interest: By IM only Security: Either on clean basis or on obtention of security (extension of charge) on best effort basis depending on tie up with the IMRepayment IM to pay each receivable on due date.Processing charges As per card rate for working capital finance

Interest Rates to both variants :NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

Margin Nil

Irregularity Reports: Bank’s instructions issued vide Circular No.: NBG/SMEBU-SME ADVANCES / 3/2017-18 dated 06.04.2017 to be followed.

A flow chart explaining the eVFS scheme is furnished as under:

Step 1 Bill/Challan prepared by vendor and dispathced with goods to the IM

Step 2 Goods accepted by IM and bill approved for payment by the IM

Step 3 IM uploads details of bill on the eVFS software and electronically inform SCFU (Operations) to credit vendor's account.

Step 4 SBI-SCFU (Operations) on receipt of information, instantaneiously credits vendor's a/c and recovers charges.

Step 5 3 days before IM is due for thepayment, the IM is informed about the same by the SCFU (Operations).

Step 6 On due date, the IM's a/c is debited & the bank's accounting entries are reversed.

Page 33

SBI "e-SMART SME" e-COMMERCE LOAN (Flipkart, Shopclues) SME Manual 31.12.2017

Purpose To provide financial assistance to registered sellers engaged in selling products through online portal of e-tailer platforms

Facility Cash Credit

Amount of Facility

Minimum: Rs 1.00 Lac Maximum: Rs. 25.00 Lacs

Banking Arrangement

Sole Banking (Lending facility for purpose of and to the extent of selling products through e-tailer platforms) 1. Lending facility for business with designated e-tailer should only be through SBI 2. Designated Cash Credit account of seller to be maintained with SBI for all payments by respective e-tailer platform

Eligible Sellers

Sellers registered on e-tailer portal for selling products online with at least 6 months track record Credit Risk model to be applied for arriving at eligibility of the borrower for the limits up to Rs. 25.00 Lacs. Loans upto the limit of Rs. 10.00 Lacs would be eligible for coverage under MUDRA.

Loan Sanction

Loan to be sanctioned centrally from Corporate Center. SME Center/Branches to validate the Sanction upon verification of documents submitted by sellers

Loan Limit: 2 to 3 times of (average net sales of last three months on designated e-tailer platform)

Drawing Power (DP)

• DP will be initially equivalent to loan limit • DP to be updated quarterly as advised by Corporate Centre. (2 to 3 times of average of last 6 months net sales)

Margin Nil

Limit & D.P. Loan Limit & Drawing Power would be same at the time of loan sanction. The amount shall continue to be assessed by the credit model. Quarterly Revision in Drawing Power (Sept, Dec, Mar & June) based on average net sales of last 6 months on e-tailer platform.

Affidavit An Affidavit should be obtained from the borrower instead of an NoC. It includes: Declaration regarding his other borrowings Undertaking to the effect that separate stocks would be made available against our facility.

Scoring Model

A Scoring Model has been introduced to serve as a minimum eligible criterion for the sellers. This exercise would be done by Corporate Center while sanctioning the loan.

Page 34

"e-SMART SME" (contd..)

Stand By Line of Credit (SLC) facility

To cater to the festive season requirement of the sellers, it has been decided to introduce SLC facility. (To be provided only when sanctioned by Corporate Center) Quantum: 25% of the limit under e-Smart SME loans. (Total exposure of the borrower including SLC should be below Rs. 25 Lacs) Sanction: To be Sanctioned centrally by Corporate Center. Pricing: 1% over the regular limit. Penal interest as applicable to be charged if not repaid within stipulated period Period: SLC can be availed for a maximum of 2 months at a time; Can be availed a maximum of 4 times in a year Eligible Sellers: New & existing customers (whose main account is regular at the time of availment) would be eligible for this facility.

References NBG/SMEBU-CAMPAIGN/56/2016 - 17 Thursday, October 06, 2016 –M.Cir.SOP

NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017 - InterestTie-up with Snap Deal Discontinued - NBG/SMEBU-TIEUPS/21/2017 - 18. Date : Thursday - 13th July 2017

Delivery model cum SOP

Page 35

CORPORATE RETAIL TIE-UPfor Financing Commercial Vehicles and Construction Equipments

(NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017 – Interest)

SBI has entered into corporate retail tie ups with the following Industry Majors for easy processing of credit facilities to customers.

Target group : To finance transport operators, borrowers engaged in passenger transport service and who are purchasing Vehicles/Buses/Construction Equipments being manufactured by the Industry Majors.

Purpose : To finance Vehicless/Busess/Constructions Equipments being manufactured by the Industry Majors.

Special Officers : Incentive to IM on sanctioned loans, after disbursement) will be paid on the business sourced to the Industry Major (IM) instead of being paid to the dealers as they don’t have the dealer network.

All other terms and conditions applicable to loans / advances, KYC, DSCR, inspections, documentation, registration of Bank’s charge with RTO, etc as per the Bank’s extant instructions.

M/s AMW MOTORS LIMITEDNBG/SME/SCFU-SCF/29/2015 - 16

Monday,June 22,2015.

ASHOK LEYLAND LIMITED (ALL) NBG/SME/SCFU-TIEUP/140/2018 - 19

Date: Thu 27 Dec 2018

BAJAJ AUTO LIMITEDNBG/SME/SCFU-SCF/48/2015 - 16

Wednesday,August 19,2015

ESCORTS LIMITED (CONSTRUCTION EQUIPMENT DIVISION)

NBG/SME/SCFU-TIEUP/115/2017–18/08022018

FORCE MOTORS LIMITEDNBG/SME/SCFU-TIEUP/141/2018 - 19

Date: Thu 27 Dec 2018

HYUNDAI CONSTRUCTIONEQUIPMENT INDIA PVT. LTD (HCEIPL)

NBG/SME/SCFU-TIEUP/121/2016 – 17 dated 20.02.2017

HYUNDAI MOTOR INDIA LIMITED (HMIL)NBG/SME/SCFU-SCF/119/2015 - 16

Tuesday,February 16,2016

MAHINDRA AND MAHINDRA LIMITED (Mahindra Truck and Bus division)

(Automotive Sector) NBG/SME/SCFU-TIEUP/116/2017-18/08022018

PIAGGIO VEHICLES PRIVATE LIMITEDNBG/SME/SCFU-TIEUP/26/2017 - 18

Date : Wednesday 05th July 2017

SML ISUZU Ltd. (erstwhile SWARAJ MAZDA Ltd.)

NBG/SME/SCFU-SCF/40/2015 – 16 dt. 21.07.15

TATA MOTORS LIMITEDNBG/SME/SCFU-SCF/38/2015 – 16

dated 17.07.15

TOYOTA KIRLOSKAR MOTOR PVT. LTD (TKML) NBG/SME/SCFU-SCF/88/2015 dt 07.11.15

TVS MOTOR COMPANY LIMITED (TVSM)NBG/SME/SCFU-SCF/117/2015 - 16

Wednesday,February 10,2016.

VOLVO BUSES INDIA PRIVATE LIMITED (VBIL)

NBG/SME/SCFU-SCF/11/2016 – 17 dt.17.05.16

VOLVO EICHER COMMERCIAL VEHICLESNBG/SME/SCFU-SCF/44/2015 – 16 29.07.15

GATI ASSOCIATES – GATI VAAHANNBG/SMEBU-COMM VEHIC/35/2015 02.09.15

M/s ISUZU MOTORS INDIA dt 151217 M/s BULL MACHINES LTD Cir dt 18012018

M/S. VOLVO EICHER COMM. Dt 120318 MARUTI Dt 28032018

RM WISE - CORPORATE RETAIL TIE UPS AJAX 190718 TVS Motors 200718 DAIMLER 22022019

NBG/SME/SCFU-SCF/157/2018 – 19 – DT 14.03.2019 - Proceeds of Retail Finance To Be Credited to Respective EDFS Account

Page 36

TAXI AGGREGATOR SCHEME (TIE-UPs WITH OLA, UBER & ECORENTACAR)

SCHEME OLA UBER ECORENTACAR

Target group

Operators identified by OLA CABS. Initial KYC will be done by OLACABS

Driver-partners identified by UBER/ECORENTACAR for Financing Facilities. Initial KYC will be conducted by UBER/ECORENTACAR for and on behalf of UBER/ECORENTACAR only.

Eligibility& Margin

10% - Borrower-driver should have a valid Driving License since last3 years and permanent residence proof at centre from where the loan is being availed.

15% - Borrower-driver should have a valid Driving License since last 1 year and permanent residence proof. In case, the borrower himself is not the driver himself but has atleast one commercial vehicle engaged in the same line of activity with permanent residence proof at the centre of availing loan, flat 10% margin may be obtained. The margin will be on on-road price.

Driver20% - Borrower-driver should have a valid Driving License since last 3 years and local residence proof at the centre of availing loan.25% - Borrower-driver should have a valid Driving License since last 1 year and local residence proof at the centre of availing loan.Non-Driver20% - If the Borrower himself/herself is not the driver but has at least one commercial vehicle engaged in the same line of activity with local residence proof at the centre of availing loan.25% - If the Borrower himself/herself is not the driver but has a local residence proof at the centre of availing loan, and does not own a commercial vehicle� The margin will be on on-road price (including RTO registration fee, road-tax, 3-year or 1-year insurance premium, cost of Immobilizer, GPS, AMC, CNG kit and extended warranty) depending upon the customer profile.Accessories like flashy lights, seat covers, mud-flap, mats, stereo(externally fitted) will not be financed

Purpose To finance purchase of new vehicles by the operators (drivers /owners) identified by OLA CAB/UBER/ECORENTACAR

Quantum ofFinance

Minimum: Need basedMaximum: Rs. 50 lacs� Loans will be covered under CGTMSE.

Minimum: Need basedMaximum: Rs. 10 lacs� All loans will be covered under CGTMSE.

Minimum: Need basedMaximum: Rs. 50 lakh*� All loans to be covered under CGTMSE;� Loans up to Rs 10 Lakhs will be categorized under MUDRA scheme* On-road price of individual car to be limited to Rs 20 Lakh

Nature of facility

Term Loan Term Loan Term Loan

Interest NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

Page 37

SCHEME OLA UBER ECORENTACAR

Repayment

36 - 60 months. Payments will commence from the very next month of disbursement.

Upto 60 months. Payments will commence after giving upto 3 months (maximum) of moratorium period

Upto 48 months Payments will commence after giving maximum 3 months of moratorium period

Assessment

Assessment will be done as in the case of SRTOs under SBF. ITR will not be apre-requisite

Security Primary Security Hypothecation in favour of SBI of the vehicles financed

Collateral NIL (as loans will be covered under CGTMSE, fee to be borne by borrower).

Additional SecurityCollecting 12 post-dated cheques upfront from drivers as means of security

Comfort letter from Uber/Ola/Ecorentacar to be provided

Other features

� Savings Bank account / Current Account (with ATM cum Debit cards) to be opened for all the drivers.� Customer/Borrower’s vehicles financed by SBI will be mandatorily fitted with GPS and factored into the vehicle cost.� Cars to be fitted with Immobiliser via factory fitted option, if found feasible by the respective Industry Major� OLA/UBER Ecorentacar to share the weekly report on the performance and earnings of the drivers with SBI

CIBIL Score

CIBIL Score more than 600 is required.CIBIL Score of Minus one (-1) and CRIF Score of Zero (0) is also acceptable.

Reference NBG/SMEBU-COMM VEHIC/4/2015 - 16Saturday,April 04,2015.

NBG/SMEBU-TIEUPS/27/2016 - 17Tuesday,July 05,2016

NBG/SMEBU-TIEUPS/39/2016 - 17Wednesday,August 10,2016.

Page 38

FRANCHISE FINANCING(NBG/SMEBU-FRANCHIESE/17/2016 – 17 Monday,May 30,2016)

Looking at the prevailing opportunity in franchise ecosystem, SBI has designed franchise financing product to address the Capex requirement and/or Working Capital requirement of franchise business. For this, a formal agreement is signed between SBI, Corporate Centre & Franchisor which is followed by intimation to the SBI branches through uploading respective circulars.

The steps are detailed below:1 Lead Sourcing and Initial Document Submission:• Franchisor to forward the franchisee lead information to corporate centre designee (dedicated appointment for each franchisor) in specified excel format file along with scans of initial document set• Initial documents contains comfort letter/introduction e-mail, projected financial statements and other data of the franchisee depending on the arrangement with each Franchisor (Potential list of documents that can be sent directly by Franchisor are listed in Annexure III in the Circular)

2 Initial Document Check (1 day):• Corporate centre designee to check that all the documents as per the pre-defined checklist have been submitted by the Franchisor and that the documents are in order. In case certain documents are not submitted, corporate centre designee to raise e-mail request to Franchisor to submit the documents at the earliest to initiate loan processing.• Corporate centre designee to validate that the projected financials of the franchisee are in line with the pre-defined projections shared by the Franchisor. Corporate centre designee to also ensure that the Balance Sheet and P&L statements shared by the Franchisor, wherever applicable, are prepared in specified format that can be uploaded directly to the LOS (CMA format).• Corporate centre designee to map the lead to the concerned Nodal officer and forward the initial document set through e-mail. TAT for Nodal Officer to be tracked from the date of mapping of the lead.

3 Lead Mapping (1 day):• The Nodal Officer maps the franchisee to the respective SME Centre(Schematic Lending Centre)/RMSE/RMME depending on ticket size of loan and geography of the franchisee (as per current process) • Nodal officer is responsible for tracking the lead by coordinating with SME Centre/RMSE/RMME and updating the status with corporate center.

4 CIBIL Check and Document Collection (7-8 days)• Pre-collection of initial documents from Franchisor minimizes documents to be collected from the franchisee, thereby reducing processing time• In cases where the franchisee is rejected in CIBIL or CRIF High Mark screening (score lesser than or equal to 6001), corporate centre designee to communicate the same to Franchisor by e-mail• Remaining documents as listed in Annexure III and any other requisite documents to be collected from the franchisee directly by SME Centre/RMSE/RMME.

5 Proposal writing and appraisal (1-4 days)Steps to be followed as per current process. However, processing time is expected to be reduced on proposal writing and appraisal by SME Centre/RMSE/RMME due to the following activities:- Initial document set to contain specified format of financial statements that can be uploaded directly to LOS reducing time taken to manually input financials in LOS by SME Centre/RMSE/RMME- Pre-validation of projected financials statements by the corporate centre designee to reduce appraisal time taken by SME Centre/RMSE/RMME in reviewing projections- Submission of project report for capex by Franchisor to assist SME Centre/RMSE/RMME in validating project cost and other details. Cases of reimbursement where capital expenditure has already been incurred shall not be considered for funding under this operating manual.

Page 39

FRANCHISE FINANCING (CONTD...)

6 Risk Rating and Conformity Check (1 day) - As per current process

7 Sanctioning (3-6 day) - As per current process

8 Post-sanction documentation and collateral check (1 day) - As per current process

9 Document execution and disbursement (1-2 days)

9.1 Account creation:• SME Centre/RMSE/RMME to (As per current process) -o fix a suitable date with franchisee for document execution and account creationo verify the original copies of the documents submitted by the franchiseeo conduct franking, document execution and create loan accounto ensure that the account created is under the Franchisor product code for the tie-upo communicate the created accounts to corporate centre and nodal officer• As per terms of the tie-up with the Franchisor, the SME Centre/RMSE/RMME to open an Escrow facility of the franchisee with SBI (if applicable)• As part of the loan agreement with franchisee, SME Centre/RMSE/RMME to obtain and furnish to the Franchisor, a consentcumauthorization letter from the franchisee authorizing the Franchisor to –o credit the monthly commission due to the franchisee under their franchise arrangement to the Escrowaccount held with SBI (if applicable)o permit the Bank to recover full or part of its dues from the security deposit of franchisee lying with Franchisor after adjustment of Franchisor’s dues, in the event of a default in repayment of EMIs (if applicable)• The consentcumauthorization to be sent to the corporate centre for forwarding it to the Franchisor, marking the concerned Nodal officer (format attached as per Annexure IV)• As per terms of the tie-up with the Franchisor, the SME Centre/RMSE/RMME will ensure that a Point-ofsale (“PoS”) machine that is linked to the franchisees SBI account is supplied and installed by the Bank at the franchise outlet (if applicable)• Corporate centre designee to maintain list of database (franchisee loan and current account, escrow account etc.) to monitor loan performance

9.2 Account Mapping:• Corporate centre designee to communicate the list of franchisees who have availed finance from the Bank along with the respective details (current account, Escrow facility, POS details etc.) to Franchisor for mapping of accounts• Franchisee to confirm with Franchisor the account details including Escrow facility, so that all future transactions with the Franchisor will happen through this account (as per sole banking clause if applicable)• Franchisor to map the SBI current and/or escrow account as the primary account for all future transactions with the franchisee of sale, purchase, commission etc.• Franchisor will not change account mapping until a No Objection Certificate (NOC) is received from SBI

9.3 Loan Disbursal: - As per current process• Disbursement of loan for capital expenditure financing shall be made directly to vendors/contractors only against invoices raised.10 Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

Page 40

FRANCHISE FINANCING (CONTD...)

Reference Circulars related to Agreements with the following FranchisorsFranchisor Circular Reference

ADITYA BIRLA FASHION AND RETAIL LIMITED (ABFRL)(BRAND NAME: ALLEN SOLLY, LOUIE PHILIP, VAN

HEUSEN, PLANET FASHION, PETER ENGLAND)

NBG/SMEBU-FRANCHIESE/6/2017 - 18Saturday,May 06,2017

HOUSE OF FITNESS PVT LTD (HFPL)(BRAND NAME :ANYTIME FITNESS)

NBG/SMEBU-TIEUPS/41/2017 – 18 Date: Fri 29 Sep 2017

EUROKIDS INTERNATIONAL PVT LTD (EIPL)(BRAND NAME: EUROKIDS)

NBG/SMEBU-FRANCHIESE /42 / 2017 – 18 dt. 9 Oct 2017

LAKME LEVER PRIVATE LTD (LLPL)

NBG/SME/SCFU-SCF/56/2015 – 16 Friday,August 28,2015.

LENSKART SOLUTIONS PVT LTD (LSPL)(BRAND NAME: “LENSKART”)

NBG/SMEBU-TIEUPS/37/2016 – 17 Thursday,August 04,2016.

SSIPL LIFESTYLE PRIVATE LIMITED(BRAND NAME “LOTTO” & “SPORTS STATION”)

NBG/SME/SCFU-SCF/15/2016 – 17 Wednesday,May 25,2016

MAHINDRA RETAIL PRIVATE LIMITED (MRPL)(BRAND NAME “BABYOYE BY

MAHINDRA” FORMERLY KNOWN AS “MoM & Me”)

NBG/SME/SCFU-SCF/16/2016 – 17 Wednesday,May 25,2016

OPTIVAL HEALTH SOLUTIONS PVT LTD (OHSP) UNDER (BRAND NAME ‘MEDPLUS’)

NBG/SMEBU-FRANCHIESE/ 63 / 2017 – 18 Date: 23.01.2018

PHILIPS INDIA LTD (PIL) (BRAND NAME “PHILIPS LIGHT LOUNGES"(PLL)

NBG/SME/SCFU-SCF/133/2015 – 16 Monday,March 28,2016

BLOOMWELL HEALTH & WELLNESS LTD (BHWL) (BRAND NAME: STUDIO 11)

NBG/SME/SCFU-SCF/109/2015 – 16 Saturday,January 16,2016

TITAN COMPANY LIMITED (TCL)(BRAND NAME: “TITAN EYEPLUS”)

NBG/SMEBU-FRANCHIESE/ 55/2016 – 17 30.09.2016

NILKAMAL LIMITED (NKL) NBG/SMEBU-TIEUPS/40/2016 – 17 Thursday,August 11,2016.

TITAN COMPANY LIMITED (TCL)(BRAND NAME: “WORLD OF TITAN”)

NBG/SMEBU-FRANCHIESE/ 54/2016 – 17 30.09.2016.

TIE-UP WITH TRENT LTD(BRAND NAME :WESTSIDE)

NBG/SMEBU-TIEUPS/19/2016 – 17 Wednesday,June 15,2016

TIE-UP WITH M/s. Bloomwell Health & Wellness Ltd (BHWL) NBG/SMEBU-TIEUPS/39/2017 – 18 Date: Tue 26 Sep 2017

SCHEME FOR CAPITAL EXPENDITURE & WORKING CAPITAL FUNDING OF

FRANCHISEES OF GREAVES COTTON LIMITED (GCL)

NBG/SMEBU-FRANCHIESE/ 55/ 2017 – 18 Date: 30.11.2017

GROOM INDIA SALON AND SPA PVT LTD. (GISSPL) NBG/SMEBU-FRANCHIESE/ 65/2017 – 18 30.01.2018

Page 41

OPEN TERM LOAN(Circular No. : NBG/SMEBU-OPTL/29/2018 – 19 Date: Sat 6 Oct 2018)

Nature of Product : Pre-approved term loan facility with option of multiple disbursements formultiple purposes.

Target Group : All units under manufacturing sector and;• Under Service Sector: Healthcare Industry (Hospitals, Doctors, Pathological Labs and Nursing Home), Hospitality Industry (Hotels, Restaurants , etc), and Transport operators withminimum 25 vehicles

Eligibility Criteria : The product will be extended upto CRA rating of SB-6/CUE 6 or ECR of BBB and above. However, in respect of customers banking with us for more than 5 years and having satisfactory track record i.e. the account has not slipped to Category SMA – 1 and below in the previous 12 months (irregular for 31 to 60 days) will also be eligible for finance under Open Term Loan subjected to:i) CRA rating of SB8/CUE 8 & above, or ii) ECR of BB & above• Non customers shall not be eligible Purpose Any genuine commercial purposes in the same line of activity, with regular business, of the customer. These would include:• Expansion and modernization • Substitution of high cost debts/high cost term debts of otherbanks/FIs • Design and introduction of new-layouts in the factory to enhance productivity• Up gradation of technology & energy conservation schemes/machinery• Acquisition of software, hardware, consumable tools, jigs, fixtures, vehicles, equipment, furniture upholstery, etc. • Acquisitions of ISO & other similar certifications • Visits abroad for acquiring technology, finalizing business deals, participating in exhibitions/fairs for market promotion, etc.

Quantum of loan (Min/Max) : • Both manufacturing and services enterprises: 20% of total limitsanctioned with a maximum of Rs. 8 crores• For expansion, modernization, technology up-gradation purposes:i) For the purpose of creation of tangible assets: 20% of total limit sanctioned with a maximum of Rs,.8 Crores ii) For business development expenditure incurred for creation of intangible assets applicable to both manufacturing and services sector: 20% of total limit sanctioned with a maximum of Rs. 2 crores

Rate of Interest : (Circular No. : NBG/SMEBU-OPTL/29/2018 – 19 Date: Sat 6 Oct 2018)

Margin : Margin at 25% uniformlySecurity : Primary : Hypothecation/pledge of the assets proposed to be purchased out ofterm loan Collateral: • Extension of charge over current assets, fixed assets, and other existing collateral if any • Obtaining additional tangible security such as immovable property, bank deposits, etc., is to be explored wherever possible.Additional collateral should be obtained to maintain the collateral coverage (%) at the existing level.• In all cases personal guarantees of proprietors/partners/promoters to be invariably obtained• In case of corporate, obtaining pledge of promoter’s equity should be examined

Repayment Period : Repayment period generally not to exceed 5 years. Sanctioningauthority may selectively consider repayment period up to 7 years where considered necessary.

Page 42

FLEXI LOAN SCHEMESME Manual 31.12.2017

Purpose : The loan can be considered for any general purpose like:- Holding of stocks/book debts - Acquisition of land and building- Building construction/upgradation and renovation of offices, show rooms, godowns, etc.- Purchase of equipment, furniture and vehicles, etc.- Substitution of high cost debt. - Shoring of networking capital - Computerisation expenditure

Eligible Customers Traders in goods, commodities and services, Business Enterprises, Professionalsand Self-Employed persons and Transport Operators covered under SBF segment, are eligible to avail of the facilities offered under the scheme.The business unit should have earned pre-tax profits in each of the immediately preceding 3 years. The scheme is extended only to established traders with proven record of profitability.

Quantum of Finance Minimum: Rs.5 lacs Maximum: Rs.1 cr.

Margin : 20%

Facility : Term Loan

Repayment : The loan may be repaid in 3 to 5 year’s time in monthly /quarterly instalments,depending upon the production cycle and/or cash generation.

Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

Security : Primary : (i) Extension of hypothecation charge over the current assets and fixed assets.(ii) Wherever the finance is extended for acquisition of land and building, building construction, upgradation and renovation of offices, showrooms, godowns, etc. equitable mortgage of the relative fixed assets will be obtained.Collateral : (i) a) Tangible collateral security equivalent of at least 35% of advance in respect of borrowers with a satisfactory tack record of 3 years.b) 50% in respect of others(ii) Personal guarantees of proprietor/partners/promoters will be invariably obtained. Further an undertaking will be obtained from the borrower that they shall not raise any further loans without Bank’s written consent. (However, all loans that are eligible for guarantee cover under creditguarantee scheme of CGTMSE should be invariably covered under the scheme.)

Statement of Stocks / Book debtsThe stock statements of assets hypothecated to the Bank will be obtained periodically.Appraisal and Assessment : The loan will be extended only as a term loan with a repaymentschedule. - The quantum of loan amount should be based on repayment capacity.- Projected profitability for the next 3 to 5 years should be calculated and evaluated on the basis of the track record and trends in turnover. - Minimum gross DSCR should be 1.5.- TOL/TNW should not ordinarily exceed 4. - Total Long Term Liabilities to Equity should not exceed 2:1.– Current ratio should not to be less than 1. Loans, deposits etc. from family members may be treated as

quasi-equity to arrive at TNW/own.– Inspection : Inspection will be conducted at half-yearly intervals.

Page 43

COMMODITY BACKED WAREHOUSE RECEIPT (WHR) FINANCE(Circular No. : NBG/SMEBUWAREHOUSE/89/2016 – 17 Monday,February 13,2017)

(NBG/SMEBU-WAREHOUSE/92/2016 – 17 Tuesday,February 28,2017 – Demand Loan – DP Note)( NBG/SMEBU-WAREHOUSE/12/2017 – 18 Date : Saturday 03rd June 2017- Amendments & SOP)

NBG/SMEBU-WAREHOUSE/50/2017 – 18 Date: Fri 27 Oct 2017 – ModificationsNBG/SMEBU-WAREHOUSE/58/2017 – 18 Date: Sat 16 Dec 2017 – Comprehensive Circular EDELWEISS AGRI VALUE CHAIN LIMITED – Collateral Manager Cir Dt. 03122018 & 28.122018

NBG/SMEBU-CBWRF/6/2019 – 20 Date: Tue 30 Apr 2019Purpose : To finance traders/owners of goods / manufacturers for own processing against Warehouse receipts of warehouses managed by Banks Approved Collateral Management Company by way of Demand loan / Cash Credit / RDL.

Margin : WCDL/ RDL (under tie-up): 25% of Market PriceWCDL / RDL (CWC / SWC): 30% of Market PriceFor CC (under tie-up / CWC / SWC) 35% of Market Price

Repayment WCDL: The loan should be liquidated as and when the produce is sold during the interim period not exceeding 12 months.Cash Credit: Repayable on demand. To be brought to credit balance and DP made Nil / reduced when the quality certificate expires.RDL: All the DLs under RDL should be liquidated as and when the produce is sold within the validity of WHR or 12 month period, whichever is earlier.

Security : Primary – Pledge / Hypothecation of underlying stocks for which WHR has been issued by the Collateral Manager /CWC / SWC, with lien marked in favour of Bank.Collateral – Personal Guarantee of partners / directors, wherever applicable.

Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018Processing Fees : Unified charges for CC / WCDL:Upto Rs. 1 crore: 0.35% p.a. (Max. of Rs. 25,000/-)>Rs. 1 cr. to Rs. 5 cr.: 0.25% p.a. (Max. of Rs.75,000/-)More than Rs. 5 cr.: 0.15% p.a. (Max. of Rs.100,000/-)More than Rs. 10 cr.: 0.10% p.a. (Max. of Rs. 3 lacs)However, discretion of upto 50% is vested with the sanctioning authority not lower than ZCC, to reduce the unified charges, on a case to case basis.Commitment charges 0.25% p.a. on entire unutilised portion on quarterly basis. It is clarified that Commitment charges to be levied only for CC limits and not for WCDL / RDL. Further, branchessanctioning WHR limits under CC facility can fix off-season and peak-season limits so that levy of commitment charges can be avoided. Utilization of less than 75% of sanctioned limit each quarter will attract levy of commitment charges.Inspection : For individual Warehouse receipts of Quarterly. However, if the conduct of the account is not satisfactory / irregular / SMA category, inspection should be done at monthly intervals. MIS should be obtained from Collateral Manager every fortnight based on which price movement to be monitored and margin calls to be made.Stock Audit : Stock Audit is not proposed for those accounts where WHR is issued by Collateral Managers having tie-up with the Bank. However, in cases where loans are against WHRs issued by CWC / SWC, Stock Audit should be done as per Bank’s extant instructions Master Circular CCO/CPPD-STOCK AUDIT/42/2017 -18 Date : Friday - 14th July 2017.FFR – I / II : Waived. However, if the unit also enjoys regular WC limits more than Rs. 5 cr. (other than WHR) from the Bank, the same will be applicable.CRA : to be done for loan amount of above Rs. 25 lacs. However, CRA will not be linked with pricing.

Page 44

LOANS TO BUSINESS CORRESPONDENTS( Circular No. : NBG/SMEBU-SME ADVANC/72/2016- 17 Tuesday,December 13,2016)

SME Manual 31.12.2017NBG/FIMF-SMEADV/1/2017 – 18 Date : Friday - 11th August 2017

Target Group : Individual Business Correspondents (BCs) / Kiosk operators /Customer Service Providers (CSPs) engaged on contract basis by the Bank (one person per outlet).

Eligibility : All the individual BCs / Kiosk operators / CSPs between the age of 18-60 years who have valid agreement with the Bank for the purpose of providing Banking Services under Financial Inclusion and should be residing in his / her area of operations for more than 3 years. Further, the BC should be attached with Bank for atleast 01 year.Purpose : To meet all kinds of Credit requirements relating to business (General purpose)Type of facilities : Overdraft / Demand Loan / Term Loan Quantum of Finance : Minimum – Rs. 25,000/- Maximum – Rs. 250,000/-. Amount Limit to be fixed at 6 times of the average commission earned during the last 12 months or max. of Rs. 2.50 lacs, whichever is lower. Further, MUDRA scoring model will not be applicable to these loans.Margin : NILSecurity : Primary: DL / TL - Hypothecation of assets purchased out of Bank’s financeOD - Assignment of commissionCollateral: No collateral Security (CGFMU cover to be obtained).Rate of Interest : One Year MCLR + 275 bps (as per loans under PMMY) 1. NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017 2. Revised Interest Structure wef 01042018 Repayment : OVERDRAFT: 12 months and to be reviewed every yearDEMAND LOAN: Maximum 36 EMIs with 1 month moratoriumTERM LOAN: Maximum 60 EMIs with 1 month moratorium

Processing fee : Loan upto Rs. 50,000/- is NIL Loan amount >50,000 = 0.50%Inspection : As per Bank’s extant instructions; end-use of funds to be ensured.Documentation : As per Bank’s extant instructions

Other conditions : All accounts to be covered under CGFMU. Applicant should be residing in the area of his / her operations for more than 3 years. Applicant must comply with KYC norms. All the information provided by the applicant should be

properly verified / cross checked. All documents must be properly scrutinised and also compared with the originals. Noting of having verified with the originals should be made on relative documents and report kept on record. Further, the branch should comply with instructions as per e-circularno. RABG/RB-AC-AC/15/2016 – 17 dated 08.11.2016 issued by Rural Business (Alternate Channels)regarding engagement of BCs / CSPs. The loans will be repayable on demand in case the BC/CSP winds up/discontinues the business All remuneration / commission to be paid by the Bank should be credited to the Operative account of

BC with the Bank and subsequently credited into the Loan account(s) through Standing Instructions for DL / TL. A letter of undertaking (as per ANNEXURE-III of e-Circular NBG/SMEBU-SME ADVANCE/72/2016-17 dated December 13, 2016) to that effect to be obtained from the Individual Business Correspondent / CSP. In case OD facility is sanctioned, the commissionshould be credited to OD account. In case, BC/CSP winds up/discontinues the business, the loans will be payable on demand and the

entire credit balance in the settlement account should be transferred to the loan account for setting-off. In case of requirement of more funds to settle the loan account, BC/CSP will have to arrange for the remaining funds to settle the entire loan accounts. The link branch has to monitor day to day transactions processed by BC/CSP and ensure that no

transaction other than FI transactions is allowed in the settlement account to ensure end-use of funds.

Page 45

SBI OD PRODUCT FOR BUSINESS CORRESPONDENTS (BCs)(Circular No. : NBG/SMEBU-BUSI. CORR/64/2016 – 17 Wednesday,November 09,2016)

SME Manual 31.12.2017

Target Group All National/State level Business Correspondents having valid agreement with SBI.

Nature of Product Running Account OD facility

Purpose The scheme proposes to grant National/State level Business Correspondents (BCs) of SBI, overdraft facility for meeting their working capital requirements which will enhance their ability toservice more customers in an uninterrupted manner and thereby further the cause of Financial Inclusion.

Eligibility Criteria All National/State level Business Correspondents having valid agreement with SBI and having satisfactory business relationship with SBI for at least two years.

Quantum of loan (Min/Max) Loan assistance of up to a maximum 70% of 2 times the average monthly commission received by the BC during the last six months with an upper cap of Rs. 5.00 Cr and a minimum assistance of Rs. 0.25 Cr. BCs whose eligible loan amount is less than Rs. 25 lacs asper the above criteria are not eligible for the OD facility under this product.

Reference All eligible loan applications received, will have to be referred to Rural Banking Unit (RBU), Corporate Centre for National level BCs and Outreach Department at concerned LHOs for Statelevel BCs before sanction of this facility.

Pricing : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018

Operation The OD limit will be sanctioned in the settlement account of the BC, however, no cheque book will be issued for the OD account.

Collateral Security • Assignment of commission to be received by the BC • 20% cash collateral, wherever collateral security is offered. • Personal guarantee of the promoter directors.

Repayment Running account facility, to be renewed every, year subject to satisfactory conduct of account.

Processing Charges 1% of the loan amount

Documentation i. Sanction Letter ii. DP Note, iii. DP Note delivery letter, iv. Deed of Assignment(as per Annexure II)

Default In case of default in servicing of interest by the BC, the collateral (cash), if any, will be appropriated in the account after due notice has been served on the BC and further legal action for recovery of the Bank’s dues will be explored/initiated.

Page 46

WEAVER CREDIT CARDSME Manual 31.12.2017

Target Group Weavers and ancillary workers involved in weaving activities in the handloom sector.

Eligibility All weavers and ancillary workers involved in weaving activities (including new borrowers who are otherwise eligible for credit facilities for carrying out the proposed activities under any of the existing Bank Schemes). Thrust to be given in financing weavers and ancillary workers who have joined to form society/ Self Help Groups (SHGs)/ Joint Liability Groups (JLJs) etc.All existing weaver borrowers of the Bank enjoying credit facilities and having satisfactory dealings will also be eligible to avail credit facilities under the scheme. Possession of Photo ID Card issued by the Development Commissioner (Handlooms) or the State Government is a necessary pre-condition for availment of the facility under this scheme.

Purpose For working capital requirements as well as purchase of tools and equipment required for carrying out weaving activity.Type of facility Term loan and cash credit

Quantum of Finance Maximum Rs.2 Lacs.

Assessment of Limit : The credit limit will be fixed based on assessment of working capital depending on the operating cycle, nature and type of yarn used for weaving etc. as well as cost of tools and equipments required for carrying out weaving activity. The borrower should score minimum 60% marks under the simplified scoring model as per the format enclosed with the scheme.

Margin Upto Rs.25000/- NIL Over Rs.25000/- and upto Rs.2 lacs 20%

Validity/Renewal of Limit : The credit card would be valid for 3 years subject to an annual review by the Bank. No need of financial statement for purpose of annual review of limit. Review may be made based on assessment of performance during inspection by field staff.

Rate of interest :NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

Security : Primary Hypothecation of Assets financed by the BankCollateral : Nil. The account will be covered under guarantee scheme of CGTMSE.

Processing fees : WaivedRepayment : Term loan repayable in 3 years.Cash credit limit to be renewed in 3 years with annual review subject to satisfactory conduct of account.Documentation : As per simplified SME documentation.

Government support to Handloom WeaversThe Government has identified 550 handloom clusters containing 300- 500 weavers for nurturing under Integrated Handloom Development Scheme (IHDS).The Government is issuing photo identity cards to Handloom Weavers on ongoing basis and this could serve as identity document.Margin money assistance @20% of the project cost subject to a maximum of Rs.10,000/- per weaver will be provided for the loans given on or after 27th September 2013 (Refer e-Circular no. NBG/SMEBU-WEAVER CRE/85/2013-14 dated 13.03.2014

Page 47

GENERAL CREDIT CARDSME Manual 31.12.2017

(NBG/SMEBU-GEN. CREDI/46/2014 - 15 Wednesday,November 12,2014)

Target Group: Individual entrepreneurs involved in productive activities covered under Priority Sector guidelines

Objective: The objective of the scheme is to increase flow of credit to individuals for entrepreneurial activity in the non-farm sector

Eligibility: All non-farm entrepreneurial credit extended to “Individuals”, which is eligible for classification Under Priority Sector guidelines .

Nature of facility: Working Capital as well as Term Loan according to the requirement of entrepreneur. GCC, preferably, will be issued as a Smart Card /Debit Card viz. Biometric Smart Card compatible for use in the ATMs / Hand held Swipe Machines and capable of storing adequate information on entrepreneur’s identity, assets and credit profile etc. For the time being, a pass book containing the name, address, photograph of the holder, particulars of borrowing limit, validity period etc. may be issued. The pass book will serve both as an identity card as well as facilitate recording of the transactions on an ongoing basis.

Quantum of Finance: Maximum Rs.5.00 lacs (However, RBI has stipulated no ceiling on the loan amount as long as the loan is for the purpose of non-farm entrepreneurial activity and is otherwise eligible for classification as priority sector. To start with, we are proposing a ceiling of Rs.5.00 lacs). Applications for higher loan amount may be processed under Bank’s other SchematicLending / Regular Schemes etc.

Assessment of Limit: Assessment of loan is to be done as per SME Credit Card Scheme as detailed hereunder: For professional and self employed: 50% of gross income shown in IT return.For SSI / Traders etc.: 25% of Projected Annual Turnover

Margin: 20 %

Security : Primary: Hypothecation of stock in trade, receivables, machinery, office equipment etc.Collateral: As per extant instructions for SME loans. (For Manufacturing & Service Sector – No collateral is to be obtained if otherwise eligible for cover under CGTMSE)

Renewal of limit: The working capital limit will be valid for 3 years subject to annual review

Rate of interest :NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018Repayment : Term Loan to be repaid in maximum 60 monthly installments

Documentation : As per SME documents

Follow up & Inspection : As per the extant instructions for SME loans

Page 48

ARTISAN CREDIT CARDSME Manual 31.12.2017

Target Group : Artisans in the handicrafts sector and not covered by the government sponsored loan schemes.

Eligibility : ● Minimum score of 60% under the simplified scoring model● Preference to be given to artisans registered with the Development Commissioner (Handicrafts)● Thrust to be to finance in clusters and preferably those supported by a Self Help Group (SHG)● Existing borrowers with limits upto Rs.2 lacs and satisfactory track record are also eligible.

Purpose : For working capital requirements as well as cost of tools and equipment required for carrying out the manufacturing process.

Type of facilities : A cash credit limit supported by a photo card which indicates the limit and validity and a passbook

Quantum of Finance : Maximum of Rs.2 lacs. Assessment to be made under Nayak Committee norms and will be based on the simplified. Scoring Model. The minimum score to be obtained for beingeligible for finance is 60%

Margin : Upto Rs.25000/- NIL Over Rs.25000/- and upto Rs.2 lacs 20%

Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018

Security : - Primary : Hypothecation of assets financed by the Bank– Collateral : NIL (Loans should be covered under CGTMSE Scheme)–

Processing fees : As applicable to SSI segment but no fees to be charged for review/renewal.

Repayment : The portion of limit used for purchase of tools, etc. may be made repayable in 3 years. The rest of the limit will be a revolving cash credit limit to be reviewed every year but valid for 3 years subject to satisfactory conduct of account.

Documentation : As per simplified SME documentation

Special features : ● New units can also be financed. ● Beneficiaries registered with the DevelopmentCommissioner (Handicrafts) will be eligible for insurance cover under group guarantee scheme forwhich the premium will be paid by the government and the beneficiaries in the ratio 60:40

Product Highlights: This scheme aims at providing adequate and timely assistance to the artisansto meet their credit requirements both for investments as well as for working capital in a flexible manner and at reasonable rate of interest. The facility will be extended by way of a revolving cash credit and the limit will be fixed based on the assessment made as per Nayak Committee norms.The assessment of the credit limit should include the cost of tools and equipment required. A photo ID card and a passbook will be issued and the limit will be valid for 3 years subject to annual review.

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LIBERALISED SCHEME( NBG/SMEBU-LIBERSCH/10/2015 – 16 )

SME Manual 31.12.2017PurposeThe concept of need-based credit facilities has been instrumental in enlarging the Bank’s financial assistance to small scale industrial units. Under the need based approach, the quantum of advance is not linked to the security or collateral offered by the unit, but is based on the genuine requirements of the unit for carrying on its activity profitably.

Extent of assistance Need-based working capital advances and term loans may be granted under the scheme without any ceiling. In the case of SSI units, there would be no consortium finance for working capital advances. Where a unit has been granted term loans by the State Financial Corporation and working capital by the Bank, the Bank may sanction additional term loan, where it is not possible for the State Financial Corporation to increase its commitment.

Security Primary Security: As per the Guidelines for MSME units as detailed in Para 5 of Chapter I of Manual on Loans and Advances – Part 5. Collateral : Loans upto Rs 50 lacs: Loans eligible under CGTMSE should be mandatorily covered under CGTMSE.For loans of Rs 50 lacs – Rs 1 cr: Loans eligible under CGTMSE to be covered under CGTMSE only if the guarantee fee is borne by the borrower as per the bank’s extant guidelines.Loans not covered under CGTMSE: Collateral as per the existing guidelines under the scheme to be obtained as per the Guidelines for MSME units as detailed in Para 5 of Chapter I of Manual on Loans and Advances – Part 5.

Margins As per the Guidelines for MSME units as detailed in Para 4 of Chapter I of Manual on Loans and Advances – Part 5. However, the following concession in margin is permitted in respect of applicants trained in Entrepreneurial Development Programmes conducted by the Bank.Above Rs. 25000 but up to Rs. 2 lacs 5%Above Rs. 2 lacs but up to Rs. 5 lacs 10%Above Rs. 5 lacs 15%

Interest rate: NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018Conduct of advancesOnly one operative account should be maintained for working capital per borrower. All debits and credits should be routed through this account. Drawings should be regulated based on the drawing power (DP) available on various facilities. A combined drawing power register should be maintained for each unit. For arriving at the combined DP, limits for various facilities in force should be considered as the maximum amounts, even when the advance value of the relative assets is in excess thereof. Where only a part of the facilities is guaranteed by third parties or when packing credit facility has been granted, separate accounts will be maintained.

Repayment a. Term loan should normally be repaid in 3 to 7 years. Repayment period may be extended beyond 7 years in exceptional cases, with the approval of an authority one stage higher than the sanctioning authority. b. Generally, working capital advance is a running account and need not be repaid like a term loan, except where the advance is for seasonal activity, like rice milling etc., or when the sanctioning authority considers the repayment necessary. Limits should be renewed every year except where a repayment programme has been fixed. c. Periodical interest should be paid promptly.

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STAND BY LINE OF CREDIT FOR WORKING CAPITAL REQUIREMENTSME Manual 31.12.2017

Eligibilityi. All borrowers including non Corporate under CAG/MCG/SME segments with CRArating of SB-10 & above and above ECR of ‘D’ by the External Rating Agencies.ii External Credit Rating (ECR) is mandatory for total exposure of Rs. 10 crore and above.

PurposeTo meet emergent and unforeseen needs of SSI and C&I borrowers while carrying out their operations

Quantum of finance1 15% of the working capital facilities (Fund Based + Non Fund Based) Maximum Rs.20 cr. In case of consortium advance, only our share of credit limits is to be reckoned for the purpose.2 The facility may be made available as Fund Based and/or Non Fund Based Limits ensuring that aggregate exposure does not exceed the overall SLC limit.

Sanction of the limit1 The sanction should be by an authority having financial powers to sanction the aggregate of the regular credit limits and the SLC as per the Delegation of Financial Powers (The authority should have the power to sanction both, fund based limits + SLC and non-fund based limits + SLC as well as the total indebtedness inclusive of SLC).2 Where the unit enjoys separate peak and non peak limits, SLC should be arrived separately as a percentage of peak and non peak limits.3 SLC limits, being contingent in nature, will be outside the consortium arrangement, if any.4 Being a general dispensation extended to all eligible units, no separate assessment/special justification is required for SLC.5 Sanction of the SLC limits should be obtained along with sanction of regular fund/ non fund working capital finance for all eligible borrowers who will specifically request for the facility.

Documentation1 Where we are the sole bankers or where the facility is under Multiple Banking Arrangement, documents should be obtained for the aggregate credit facilities extended by us, inclusive of SLC and the charge on available securities to be extended to cover SLC also.2 In the case of consortium advances where consortium documents have been obtained, SLC to be covered by separate working capital documents, creating charge on residual value of the security. 3 Where applicable, charge to be registered with ROC.4 The terms and conditions letter should specify that the SLC would be released at the sole discretion of the Bank.

Release of the Limit1 The release of SLC is to be approved by the head of the branch.2 SLC may be made available at the specific request of the borrower as stock limit, bills/receivable limit, letters of credit, bank guarantees limit for domestic operations/exports, depending on the need, after being satisfied about the requirement.3 Where the borrower has domestic operations and exports, the release for each of the activities should be within the overall SLC limit sanctioned.4 Fund based SLC should invariably be covered by eligible drawing power.5 Opening of LCs / issue of BGs from SLC are to be governed by the prescribed margin requirement.6 If the conduct of the SLC is not satisfactory, further draw down of the facility may not be permitted by the Branch Head.7 In case of SME units, SLC is not to be released where the unit has utilised SME Credit Plus Facility.

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Period1 For a maximum period of 3 months extendable upto another 3 months at any one instance.2 Where SLC remains outstanding for more than the stipulated period, it should be treated as irregular drawings and reported accordingly. Gaps of less than 15 days to be neglected for calculating the period during which SLC has remained outstanding for such reporting.3 There will be no restriction as to the number of occasions SLC can be made available in a calendar year.

Interest1 Additional interest of 1% over the regular working capital facilities will be applicable on fund-based credit facility under SLC2 Penal Interest as applicable will be charged , if not repaid within stipulated period.3 SLC availed as non fund based facility shall attract normal rates of commission.4 Controller of the branch will have the discretion to reduce/waive the additional interest component on business considerations.NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018 Reporting of the release of SLC1 Releasewise reporting of SLC is not required.2 Reporting shall be made along with the annual renewal of limits by way of utilisation report.

Others1 Proposals for renewal/enhancement of credit limits should contain the information on utilisation of SLCs, such as number of occasions, quantum, total period, non regularisation in time, if any, etc.2 No processing charge is to be recovered for SLC each time as processing fee is recovered as part of total.

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FLEXI LOAN FOR TRADE & SERVICES SECTORSME Manual 31.12.2017

‘Flexi-Loan’, a term loan facility for a period of three to five years, is designed taking into account the special requirements/characteristics of the Trade & Services sector. A list of activities under the T&S sector eligible for the flexiloan is given in Annexure to Flexi Loan in SME Manual 2017. The scheme will be operative only in branches categorised as SMGS IV & above incumbency and other branches specifically authorised for the purpose by the Circle. The detailed operative guidelines of the scheme are as under:

1 Purpose of the loan: The loan can be considered for any general purpose like:● Holding of stocks/book-debts, ● Acquisition of land and building,● Building construction/ Up-gradation and renovation of offices, show , godowns etc.● Purchase of equipment, furniture and vehicles etc., ● Shoring up net working Capital,● Payment of long term deposits/advances to suppliers, ● General trade purposes.

2 Nature of facility: Term Loan. It is clarified that this product is an additional window for existing units to meet their unforeseen requirements besides availing already sanctioned working capital/term loan limits

3 Eligibility criteria: Borrowers with CRA ratings of SB10 and above and should have earned pre-tax profits in each of the immediately preceding 3 years and net profit in the past year. Initially, the scheme will be extended only to established traders with proven record of profitability.

4 Appraisal and Assessment:● Standard appraisal formats for working capital/term loans as the case may be used as per the purpose of the funds requirement. However, loans will be extended only as a term loan with a repayment schedule based on the repayment capacity.● Projected profitability for the period of term loan should be evaluated on the basis of track record and trends in turnover. The project should have a minimum acceptable gross DSCR of 1.50 and TOL/TNW not ordinarily exceeding 4.● The total long term liabilities to equity should not exceed 2:1 and the Current Ratio not to be less than 1.● In addition to business income, other sources of personal income of proprietor/partners, which are more or less assured, may also be reckoned for DSCR. In case of borrowers other than proprietary and partnership firms, personal income is not to be taken into account for purpose of working out DSCR. Minimum Gross DSCR to be 1.50.● A limit of upto 15% of assessed working capital limit may also be considered for meeting contingencies like higher stocking during festivals, seasonal character of availability of goods etc. The additional limit will be available subject to eligible drawing power.

5 Credit risk assessment: CRA waived if the total indebtedness including proposed sanction do not exceed Rs.25 lacs. “CRA-Trade and CRA - Services model” should be used for credit risk assessment. Instructions regarding minimum scores, hurdle rates cut off for simplified/detailed models, etc. as contained in Chapter-3 will apply to such Credit Risk Assessment.

6 Quantum of finance: A minimum of Rs.5 lacs and a maximum of Rs 100 lacs.

7 Margin: Minimum margin 25%. In other words, the quantum of the loan shall be restricted to 75% of the project expenditure. Loans, deposits etc. from family members may be treated as quasi-equity to arrive at TNW/own funds. Evidence of sub-ordination is to be supported by undertaking from the relatives.

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8 Sanctioning powers: The sanctioning powers shall be as per the Scheme of Delegation of Financial Powers for term loans.

9 Repayment: 3 to 5 years. Sanctioning authority may extend the repayment period upto 8 years in deserving cases. The loan shall be repaid in monthly/ quarterly instalments depending on the normal cash generation cycle. There will not be any penalty for pre-payment of the flexi-loans. However, the loan is to be recalled if classified as NPA as per Bank’s extant instructions.

10 Rate of Interest: The interest rate is to be linked to MCLR as per applicable CRA rating. If total indebtedness is less than Rs.25 lacs, the pricing as applicable to SSI/SBF units shall apply.NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 0104201811 Security:i) Primary Security: Hypothecation charge over the current assets. Wherever the finance is extended for acquisition of land and building, building construction, up-gradation and renovation of offices, showrooms, godowns, etc., equitable mortgage of the property & hypothecation of fixed assetswill be the primary security.

ii) Collateral Security:● Loans for holding of stocks/book debts, shoring up net working Capital, payment of long term deposits/ advances to suppliers and for general trade purposes shall be collaterally secured by tangible security such as immovable property, bank deposits etc. To the extent of a minimum of 35% of the limits sanctioned in respect of borrowers with satisfactory track record of 3 years. In other cases, a minimum of 50% tangible collateral security should be obtained.● For the purpose of financing of current assets as well as fixed assets, personal guarantees of proprietor/ partners/promoters are to be invariably obtained.● Personal guarantees of family members of proprietor/partners/ promoters are to be explored.● An undertaking to be obtained from the borrower(s) that he (they) shall not raise any further loan without the Bank’s written consent.

12 Documentation: Suitable loan document should be obtained from the borrower and the guarantor respectively.

13 Monitoring: The loan is to be disbursed for the approved purpose.● The borrower should submit, at quarterly intervals for information purposes, statement of stock/book debts in respect of flexi loan sanctioned for WC purposes by way of term loan only.● If the loan is for financing fixed assets, suitable monitoring of project expenditure and end-use of funds is to be ensured.● Inspection of the unit is to be carried out at quarterly intervals.

14 Others:● Balance Sheet: Audited statements as per the format.● Review: As applicable to term loans; Irregular TL’s to be reviewed Half yearly.● Insurance: To cover all assets charged to the Bank.● Exposures under multiple banking arrangements may be taken up selectively as this will facilitate take-over of good accounts in due course; subject to complying with Bank’s takeover norms.● Exit Route : In the event, the borrowal unit fails to pay principal/interest due in one month, the account be treated as SMA and appropriate measures as applicable thereof will follow.● The term loan to be disbursed in line with the approved purpose.● Loans, deposits etc. from family members may be treated as quasi-equity to arrive at TNW/own funds evidence of sub-ordination to be supported by undertaking from the depositors.

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CONSULTANCY SERVICES CELL & PROJECT UPTECHSME Manual 31.12.2017

1. Purpose : With a view to providing technical support to the operating staff and reducing their dependence on outside agencies like SISI for obtention of technical reports and advice on other technical matters, and extending technical advice and consultancy to the clients in addition to finance, Consultancy Services Cells were established at all the LHO centres. The cells are manned by Technical Officers and officers of general cadre with Engineering/ Management/ Science background.

2. Technical Consultancy : With the shift in emphasis from Technical Consultancy to Management Consultancy, the Bank undertakes, in selected areas, basic training of borrowers, both existing and prospective, either in our own training centres or in association with established institutions and agencies.

3. Functions of the CellThe Cell at present undertakes the following types of activities:● Appraisal of new proposals above a cut-off level as well as proposals for assistance for expansion and modernisation covering production process, fund requirement, marketability etc.● Advice to the operating functionaries regarding production process, appropriateness of the plant and machinery and their cost.● Diagnostic study of sick units and drawing up of nursing plan and rehabilitation package.● Verification and valuation of stocks and machines. ● Preparation of Industry Dossiers.● Counselling and guidance to entrepreneurs in the preparation of projects especially those entrepreneurs availing loans under the Bank’s ‘Entrepreneur Scheme’ or ‘Equity Fund Scheme’ so that the concerned borrowers benefit from proper counselling right from the initial stage.● Conducting training programmes for the operating functionaries/ field staff for development of risk-appraisal skills.● Conducting training programmes for entrepreneurs, both existing and prospective.

4. References to the Consultancy Cell and outside consultantsWith a view to increasing the effectiveness and reducing avoidable references to the Cell, the following guidelines should be followed:A. References to the Cell should be made more for obtaining advice on specific issues rather than for getting techno-economic feasibility reports. Specific issues such as production process, cost of machinery and their capacities, costing of the products, marketing, inter-industry data, pros pects of the industry, etc., on which the operating functionaries have doubt or need clarification may be referred to the Cell. In the case of proposals under the SBI SMILE Scheme, such reference may be made for assessing the technical competence of the promoters, market for the products, adequacy and costof machinery and productivity.

B. A standard format designed for the purpose of obtaining approval of the authority empowered to make reference to Consultancy Cell is furnished in Annexure – CELL / 1.

C. References to the Bank’s Consultancy Cell should be authorised by officials not below the rank of Deputy General Manager.

D. Minimum cut-off level of loans/ advances for making references to Cell is Rs.5 lacs except when a report on machinery for sanctioning a term loan exceeding Rs.2 lacs is necessary. It needs to be mentioned here that obtention of such reports is NOT a must for taking credit decision where our field staff is acquainted with the working of such machinery and do not consider such reports necessary.E. As far as rehabilitation proposals are concerned, proposals involving the following issues may be referred to the Cell:

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● diversification is contemplated ● balancing equipment is to be purchased● there is a doubt regarding the usefulness of the existing machinery● fresh assessment is necessary regarding marketability of the finished goods, or ● costing of the products is required.F. Engagement of outside consultant may be considered only if the Cell is not in a position to resolve the issue. The Consultancy Cell should act as the nodal point for reference to outside consultants. Before making such a reference, cost should be ascertained beforehand by the Cell.

5. PROJECT UPTECH5.1 As an extension of the Bank’s management consultancy services, since 1988 consultancy services diversified to support technology upgradation endeavours of clients with a view to improving quality and productivity and countering competition thereby getting a grater share in the domestic / global market. These consultancy and modernisation programme activities are now covered under the name ‘PROJECT UPTECH’. The principal objective of Project Uptech has been to catalyse technology upgradation in selected industry. For this, the following tasks are undertaken:● enhance technology awareness among industrialists● cause a step-up in quality, productivity and cost effectiveness – thereby enhance the industry’s market competitiveness, both local and global ● disseminate technological/market information● bring to the line executives / credit managers, a sharper focus on the technological areas of industries, thereby introducing a vibrant dimension to credit analysis within the Bank.

5.2 Cluster ApproachThe modernisation programmes for small and medium enterprises are limited to a location and are industry-specific (cluster approach). The cluster approach helps ● Optimised utilisation of human resources ● Coverage of a large number of firms ● Spread effectA cluster is chosen on the basis of the availability of (i) a large number of units with similar products/process in close proximity (ii) potential for quick technological upgradation and (iii) the Bank’s presence in the area i.e., its supportive branch network, market share and availability of personnel. Each cluster programme is for a duration of about three to four years, and covers about 30-40 firms; this plus the spread effect, leads to a good impact on the cluster as a whole.The methodology of cluster approach at the industry level involves process like: ● adding to the data base through surveys, systems studies● identifying better practices/equipment observed in similar clusterselsewhere/available in the market / R & D institutions to help the programme cluster.● increasing awareness and skills of the cluster entrepreneurs through a series of seminars/workshops- covering technology, market, systems; several such workshops are held in each cluster● launching R & D work for evolving better product design (where there is a common product in the cluster e.g. pumpsets in Coimbatore), key process component (pollution control equipment for foundries in Agra, better furnace designs in Ferozabad, spread of the Divided Blast Cu- pola)● training of shop floor personnel and supervisors in contemporary manufacturing practices.For each Project Uptech programme, a dedicated Project Uptech office is established at the cluster itself with a Task force comprising the Bank’s consultancy cell officials and industry experts. Close liaison is established with the local promotional / R & D institutions, trade associations.The Task Force makes a thorough study of the techno-managerial aspects of individual firms covering human resources, organisation, product characteristics, market, delivery systems, production process, quality control, productivity, etc. It suggests, as an integrated strategic business plan for a firm, firmspecific technology upgradation plans keeping in view individual firm’s need, its capability (financial, managerial, economic feasibility) and the en- trepreneur’s own assimilating and implementing capability. The Task Force provides backup support through close linkage with the firms and continu- ous work with the chosen cluster.

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CLUSTER SPECIFIC PACKAGE: CERAMIC CLUSTERSSME Manual 31.12.2017

Target group : Existing/ new ceramic manufacturing units located in Ceramic Industry Cluster

Purpose : Cluster Financing Eligibility for the Package• Individuals/Partnership Firms/Private Limited Companies & Corporate constituents• Eligibility is linked to the scores obtained under ‘Pricing Matrix’• Borrower has to get min 25 marks(out of 50) under Pricing Matrix to be eligible for package

Facility : • Term Loan • Working Capital • Non Fund based limits

Loan Amount : All proposal handled by NBG branches in the cluster

Margin for Non Fund based business :Scores / Marks between 25 -35): 20% marginScores / Marks above 35): 15% marginCCC-I will have the discretion to reduce the margin further by 500 bps for all sanctions within their powers.

Interest rate :Scores (Marks) Applicable Interest Rates (linked to BR)>45 out of 50 marks (excluding 45) MCLR + 175 bps>35 marks & less than 45 marks (Excluding 35 & including 45) MCLR + 200 bps>30 marks & less than 35 (Excluding 30 & including 35) MCLR + 275 bps(#)>25 marks & < 30 marks (Including 25 & 30) MCLR + 375 bps<25 marks (Excluding 25) No financingAll other parameters like term premia will be applicable as per Banks extant instructions.# With discretionary power to CCC-I to reduce the interest rate by 25 bpsNBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018Repayment : Term Loan: Max. 8 years Working Capital: Up to 1 year

Loan Processing : Fee To be recovered as per the extant instructions applicable to different facilities

Pre-Payment Fee : 2.00% p.a. of the outstanding amount in case of Term Loan. (Not applicable if repaid from own sources)

Security : Primary Security : Hypothecation/ Mortgage of assets financed.Collateral Security : • Up to Rs.50 lacs: No collateral security. Loans will be mandatorily coveredunder CGTMSE. • Other than CGTMSE covered account: Min 40% tangible collateral.• In respect of units with ECR of below BB-, risk mitigation to be clearly defined i.e., obtention of SARFASI compliant collateral security/ financial assets to the extent of 125% should be mandatory.Guarantor : Personal Guarantee from the Proprietors/Partners/Directors of the Unit is mandatory. For proprietary concerns, third party guarantee is to be obtained in case it is not covered under CGTMSE.

All other parameters will remain same as per Bank’s Extant Instructions.

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CLUSTER SPECIFIC PACKAGE AUTO COMPONENTS CLUSTERSME Manual 31.12.2017

Target group : Existing/ new manufacturing units located in Auto Components Cluster

Purpose : Cluster Financing

Eligibility : Individuals/Partnership Firms/Private Limited Companies & Corporate constituentsEligibility is linked to the scores obtained under ‘‘Auto Components Cluster Eligibility Cum Pricing Matrix” mentioned in ‘Annexure I’ above. Borrower has to get min 40% score under scoring model to be eligible for package

Facility : Term Loan , Working Capital, Non Fund based limits

Loan Amount : All proposal handled by NBG branches in the cluster

Margin forFund / Non-Fund based business :Scores above 75%:15% marginScores below 75% :20% marginCCC-I and above will have the discretion to reduce the margin further by 500 bps.

Repayment : Term Loan: Max. 7 years Working Capital: Up to 1 year

Interest Rate : Interest rates will not be linked with CRA. Interest rates are linked with score obtained in ‘‘Auto Components Cluster Eligibility Cum Pricing Matrix”Scores (Marks) Applicable Interest Rates (linked to MCLR)>90% (67.5/75 marks) MCLR + 175 bps>75% but <90% (Including 75% but excluding 90%) (56.25/75 marks) MCLR + 200 bps>65% but <75% (including 65% but excluding 75%) (48.75 / 75 marks) MCLR + 225 bps>55% but <65% (including 55% but excluding 65%) (41.25 / 75 marks) MCLR + 270 bps>45% but <55% (including 45% but excluding 55%) (33.75 / 75 marks) MCLR + 325 bps>40% but <45% (including 40% but excluding 45%) (30 / 75 marks) MCLR + 375 bps< 40% No FinancingCCC-I and above will have the discretion to extend 50bps concession.Revised Interest Structure wef 01042018Processing Fee 0.50% of loan amount

Pre-Payment Fee: In case of pre-payment through internal accrual – NilIn all other case- 2.00% p.a. of the outstanding amount in case of Term Loan.

Security : Primary Security : Hypothecation of assets financed.Collateral Security : Up to Rs. 1 Cr: No collateral security. Loans will be covered under CGTMSE.Above Rs 1 Cr: Min 20% tangible collateralGuarantor : For loans up to Rs.1 Cr covered under CGTMSE: No Third Party Guarantee.In other cases: Personal Guarantee from the Promoters/Partners/Directors of the Unit will be mandatory. For proprietary concerns, third party guarantee is mandatory.

All other parameters will remain same as per Banks Extant Instructions

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SME SBI TIE-UP CARDSME Manual 31.12.2017

1 Purpose : To provide Letter of Comfort [LOC] facility to promoters / Partners / Directors of SME units having borrowing arrangements with the Bank for availing SME SBI TieupCard from SBI CARDS AND PAYMENT SERVICES PRIVATE LIMITED [SBICPSL]

2 Target : Group yyThe Credit Card Facility will be extended to the promoters / partners / Directors of SME units

3 Nature of Facility : This facility will be extended in the form of a Letter of Comfort against the authorization letter from the company to debit its account and pay to SBICPSL, in case of default by the card holders; no limit will be sanctioned for the purpose.

4 Eligibility : a) Promoters / Partners / Directors of all SME units under Manufacturing or Trade & Services sector, enjoying aggregate Fund Based Working Capital limit of above Rs. 50.00 lacsfrom the Bank.b) The CRA of the unit should be between SB-1 and SB-9.c) The unit has banking relationship with SBI of 3 years and above.d) Partners/Directors availing SME SBI Tie-up Card should be a guarantor for the existing credit facilities.e) The unit’s account(s) should not have slipped to SMA category in the previous 12 monthsf) Age of promoter / partner / director of the SME shall be more than 18 years and less than 70 yearsg) For individual promoter/partner/director of SME, SBI shall do a CIBIL check; SBICPSL shall not do a separate CIBIL pull and shall rely upon the information provided by SBI, in this regardh) In the event the individual promoter / partner / director of SME is an existing SBICPSL cardholder, the conduct of the existing SBICPSL credit card should be satisfactory.

5 Authorized Branches : Branches catering to SME clients through RMSEs/ RMMEs will extend the scheme.

6 Eligible limit for card holders : 2% of the aggregate fund based working capital facility enjoyed by the unit with a minimum of Rs. 1 lac and maximum of Rs.10 lacs per unit, with a minimum of Rs. 1 lac and maximum of Rs.2 lacs per Promoter / Partner / Director.

7 Sanctioning authority : By the branch Manager, on the recommendations of RMSE /RMME. The control report in such cases will be put up to Controllers of the branch within 7 working days.

8 Processing Fee : Rs.1000/- + Service Tax as applicable, per application.

9 Consideration : a) The amount of consideration shall be agreed between SBICPSL & SBI from time to time, by way of an exchange of letter/email and all such letters and emails shall form valid and integral part of this Agreement. b) Consideration shall be made subject to the relevant provisions of the Income Tax Act where ever applicable. c) SBICPSL will assume the responsibility of distributing the consideration as per the agreed periodicity.

10 Repayment of Credit Card Dues : a) Payment of credit card dues will be done by the card holders as per the terms of SBICPSL.b) The Letter of Comfort will be invoked only on non-payment of credit card dues beyond a period of seventy-five (75) days and SBI shall make the payment within seven (7) days from the date of invocation

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of the Letter of Comfort.c) Once the LOC is invoked fully or partially, the credit card issued to the promoters/all the partners/all the directors will be blocked and no further withdrawal against the card will bepermitted against these cards.d) If the SME account is classified as NPA/SMA-2 in SBI books, all the cards will be blocked within 48 hours by SBICPSL on receipt of written request from the Branch/Bank.e) In case of death of the proprietor/ partner/ director, retirement of partner/director, dissolution of the partnership/ liquidation of the company, the card(s) issued to such person will be blocked within 48 hours by SBICPSL on receipt of written request from the Branch/Bank.f) All the cards issued under the scheme will be blocked by SBICPSL within 48 hours on receipt of written request from the branch/bank in the event of slippage of CRA of the borrowalunit worse than SB-9 (i.e. SB-10 and worse).g) Notwithstanding the clauses mentioned against item 10 (d) to 10 (f) above, the SBICPSL will block the card/all the cards issued under the scheme within 48 hours of any written request from the branch/bank.

11 Security/Documentation :I. Authorization letter (enclosed as Annexure-B) from the SME unit to debit its loan account to recover the SME SBI Tie-up Card dues in case of default in payment of SME SBI Tie-up Card dues by the card holders / invocation of Letter of Comfort by SBICPSL.II. In addition to that the following documents will be obtained /executed:a) SBICPSL Application form, from the promoters/partner/director of the SME borrowerb) KYC of the promoter/partner/director of the SME or a KYC declaration from SBI for promoter / partner / director of the SME.c) Branch recommendation letter, confirming the following details of the loan / other facility, availed from the Home Branch:1 Name of the SME2 Constitution of the SME3 Account and CIF number of the loan/other facility4 Approved Limit and breakup of loan/other facility5 Conduct of the SME account in last 6 months6 Whether the conduct of SME account is satisfactory.7 Name of the Promoters/Directors8 Promoters/Directors CIF No. and Account No. of Guarantors/Promoters9 Branch manager name, SS No. Branch Coded) Long and Short enquiry of the SME CIF;e) Authorization/Written Consent to SBI from authorized signatory of the SME unit to share the bank account information with SBICPSL, for issuance of Credit Card to the proprietor/ partner(s)/ director(s);

12 Applicants restricted under this facility : This facility should not be extended in cases where:a) The SME units are weak or have turned SMAs / NPAs or likely to become NPAs.b) The relations between branches & promoter (s) are soured.c) Wherever it is proposed to initiate legal action against the unit/ promoters

13 Review : The Scheme will be reviewed after 6 months of execution of MOU with SBICPSL

14 Card Name : i) SBI Elite Card Cards Features are enclosed as annexure-1

15 Misc : KYC related regulatory norms contained in RBI’s Master Direction – Know Your Customer (KYC) Director, 2016 dated February 25, 2016 should be meticulously followed.

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SBLC BACKED FINANCING FOR JAPANESE CORPORATESFOR THEIR INDIAN Jvs/SUBSIDIARIES

SME Manual 31.12.2017

Target Group : JVs / Subsidiaries floated by Japanese Corporates/ Companies, who want to avail credit facility for manufacturing / trading & services activities in India.

Purpose : For build-up of current assets and fixed assets needed for business purpose, capacity expansion, modernization, short term working capital, etc.

Nature of facility & Assessment of credit limits : Fund Based and or Non Fund Based The need based assessment for the requirement of credit limits has to be done.

o Upto Rs. 5 Crore, working capital credit limit to be computed at 25% of projected turnover (as per Nayak Committee Method).o Above Rs.5 Crore, Assessed Bank Finance as per regular assessment system.o In case of Fixed Asset- based on the actual expenditure proposed. o Aggregate of total exposure (FB+NFB) should be collaterally secured by SBILD of minimum 125% (to factor for exchange risk).

Type of Loan : Cash Credit / Term Loan & NFB depending upon the requirement

Eligible Customers : i. New & existing units set up in India by the Japanese Corporatesii. Takeover of existing units from other Banks/FIs with satisfactory track record, which has been taken over by the Japanese Corporates (Credit Information report to be obtained)

Takeover Criteria : Credit Information Reports from CICs/CIBIL Report should be satisfactory and Credit Opinion Report from other Banks to be obtained.

Bank statements of all accounts of the constituent with other banks for last 12 months are to be mandatory obtained and perused. The name of the promoters /directors/guarantors should not be appearing in the list of defaulters/ wilful defaulters/ CRILC/ Caution lists, etc. Accounts restructured under CDR, JLF mechanism, MSME restructuring Scheme, etc., and accounts under rehabilitation or under OTS should not be taken over. Takeover of loans from our associates / subsidiaries companies are not permitted. NPAs / SMA should not be taken over iProbe should also be verified. Bank’s other takeover norms will not be applicable under this scheme

SBILD (%) : i. Total proposed exposure (FB+NFB) will be covered by minimum 125% of SBILD to be issued by FO.ii. As the SBILD issued by our FO would be in foreign currencies, forex movements should be monitored closely and if there is any variation beyond 10%, either hedging should be stipulated or drawing power should be adjusted accordingly, so that 20% margin is available at all times (in case of negative movement). In any case, the branch should monitor the adequacy of stipulated margin at quarterly interval without fail.

Loan Amount : Minimum Loan Amount: > Rs. 50 lacs, Maximum Loan Amount: Rs. 50 crores

Hurdle and CRA Rating : CRA to be done as per the extant instructions; however, CRA will notbe linked with pricing.

Unit with CRA of SB-10 and below is not eligible for finance under the scheme. Deviation, if any, may be approved as per Bank’s extant instructions.

Sanctioning authority : As per delegation of financial powers

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Interest rate : MCLR one (floating) + 150 bps Additional 25 bps concession for obtaining ECR (only to the unit having ECR of ‘BBB+ and above”. Discretion for further reduction upto 100 bps (to be exercised judiciously by the sanctioning authority

not below ZCC for all sanctions falling within Circles power on case to case basis)Revised Interest Structure wef 01042018Margin : Minimum 25% against current assets/fixed assets created out of bank finance.

Minimum 25% cash margin for NFB facility. Cash flow to be examined at the time of opening LCs in order to ensure honouring bills on due date

Security : Primary Security: Cash Credit: Exclusive 1st hypothecation charge over current assets of the unit/company. Term Loan: Exclusive 1st hypothecation/mortgage charge over the fixed assets created out of Bank finance Collateral Security:

SBILD issued by Foreign Offices of the Bank. (The value of SBILD should be minimum 125% of the total exposure sanctioned to the unit). 1st charge on unencumbered fixed assets of the domestic entity. i) No second charge or pari-passu will be extended for other Bank/FIs (both for primary security as well as collateral security) ii) All the charges should be duly registered with ROC/CERSAI, etc., wherever applicable, well within the stipulated time. Personal/Third Party Guarantee :

Personal Guarantee of India based Promoters/Partners/Directors of the unit. Personal guarantee/Corporate guarantee of JVs/Subsidiaries floated by Japanese Corporates

/promoters to be obtained, wherever feasible.

Repayment: Cash Credit: Repayable on demand, However, limit will be sanctioned for one year and subject to renewal every year thereafter. Term Loan: Limits can be sanctioned for period ranging from 36 months to 84 months with either equated or customized monthly installments, depending upon the cash accruals. Moratorium should not be more than 18 months based on activity. Interest to be serviced monthly during the period of moratorium also.

The above repayment schedule will be subject to validity of SBILD issued by our Foreign Offices. The validity of SBILD will be 3 months more than our repayment schedule.

In case of working capital limit facility, all the transactions should be routed through the account. Interest / instalments should be serviced regularly as and when applied. No over-drawings permitted.

Penal interest : As per the standard instructions of the Bank under normal credit dispensation. Any adverse features in the account should be brought to the notice of

the concerned Foreign Office, which has issued the SBILD.

Processing charges /upfront fee : As per the standard instructions of the bank under normal creditdispensation. Discretion for further reduction upto 50% (to be exercised judiciouslyby the sanctioning authority not below ZCC for all sanctions falling within Circles power on case to case basis)

Documentation : SME documentation as applicable.Renewal / Review: Cash Credit: Annually, the limits may be renewed at the existing level or with enhancement or at reduced level subject to satisfactory conduct of account and satisfying the eligibility criteria of the scheme. Term Loan: Review has to be carried out annually and put to sanctioning authority under whose power total exposure falls.

Inspection : Quarterly inspection of unit / activity / property.

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CAPEX FUNDING FOR DEALELRS OF INDIAL OIL CORP. LTD (IOCL)(Cir No.NBG/SME/SCFU-TIEUP/73/2017 – 18 Date : Thursday - 12th October 2017)

Purpose : For setting up of infrastructure facility like Canopy, Driveway, DG Set / Invertor, Combined Items etc for the Petrol pump outlet and Purchase of Tank Truck for transportation of MS/HSD.

Nature of Facility : Term Loan Amount of facility : Upto Rs 50 lacs

Eligibility : Existing Corporate/Non-Corporate/Partnership /Proprietorships having valid Dealership Agreement with IOCL.

Eligible amount of finance : 90% of the total project cost. Margin : 10%

Rate of Interest : Dealers availing e-DFS facility from SBI: Rate equivalent to e-DFS, presently MCLR + 1.00% p.a. Dealers availing Cash Credit limit from SBI: MCLR + 1.50% p.a.Dealers availing limits from other Banks: MCLR + 2.00% p.a.Revised Interest Structure wef 01042018Repayment : Upto Rs. 20.00 lacs : Repayment in 3 - 5 years based on cash flow including moratorium period of 3 months. Above 20 lacs to 50 lacs : Repayment in 5-7 years based on cash flow including moratorium period of 3 months

Security : Primary Security : Hypothecation of assets created out of Bank finance

Collateral Security : Upto Rs. 10.00 lacs (For all): Covered under MUDRA. Guarantee Fee to be borne by the dealers. Above Rs 10.00 lacs to 50 lacs (SC /ST / Women) : Covered under Stand up India (For Greenfield enterprise only). Guarantee Fee to be borne by the dealers. Above Rs. 10.00 lacs to 50 lacs (For dealers availing e-DFS / CC limits from SBI excluding SC/ST/Women): Extension of charge of Collateral Security provided under e-DFS / CC limit Others: 25% Collateral Security in the in the form of Land & Building / Cash Collateral / Bank’s Approved securities.

Guarantee : Personal guarantee of the proprietor / partners / promoters of the unit.

Upfront fee : 1.00% of the term loan subject to minimum of Rs. 5000/-

Repayment : For SBI Customers: Standing Instruction for repayment to be linked to the account through which payment is made to IOCL / Current account. Others: PDC for at least 12 months to be obtained in advance.

Comfort from IOCL : Recommendation from IOCL through Corporate Opinion Letter. IOCL will support the Bank for recovery of dues on best effort basis. IOCL will certify the work completion certificate without any obligation and responsibility for quality of work. Subsidy to be deposited by IOCL in Term Loan account of the dealer.

Documentation With IOCL : MoU for financing dealers With Dealers :SME simplified documentation. Other documents as per banks extant norms.

Inspection : Inspection as per schedule of TL disbursement. Annually after commencement of business and immediately in case of default /delay in repayment of EMIs.

Review : Annual review of TL

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ARTHIAS PLUS SCHEME : FOR FINANCING ARTHIAS / COMMISSION AGENTS

(Cir No. NBG/SMEBU-SME ADVANC/32/2018 – 19 Date: Fri 12 Oct 2018)

1 Target Group : Commission Agents/ Arthias engaged in Retail Trade

2 Eligibility : Commission Agents/ Arthias (functioning in markets/ mandies) also engaged in Retail trade activities and enjoying good reputation in the market with sufficient experience in the line of their business for the past 3 years. They should be registered with the Market Committee and possess a valid license issued by the Authorized government agencies.

3 Purpose : To meet the Working Capital requirements of Commission Agents/Arthias engaged in trading activity

4 Type of facility : Cash Credit

5 Period of Loan/Limit One Year. To be renewed annually as per norms

6 Assessment of Limit : Limit to be assessed separately based on Sales and Commission Income, asunder. Final limit to be arrived by adding both the limits. (i) Where Sales are booked by Arthias:Limit would be assessed 20% of the projected sales (ii) For Commission Income: Limit would be assessed as 20% of Sales. Sales value will be computed as under:-Actual Commission * 100/Rate of Commission

7 Quantum of Loan : Minimum: Above Rs. 10 lacs Maximum: Rs. 500 Lacs

8 Statement of Stocks & Receivables : Monthly

9 Margin : Stocks – 30%, Govt Receivables ( up to 6 months) & Non-Govt Receivables (up to 3 m) - 40%

10 Inspection : Primary Security on quarterly basis. Property mortgaged (if any) on yearly basis.

11 CRA/CUE : To be done as per extant guidelines for loans of Rs. 25 lacs and above

12 Rate of Interest : Above Rs. 10 lacs to below Rs. 25 lacs: MCLR + 2.20% Rs. 25 lacs & above and upto Rs. 500 lacs: as per CRA/CUE ratingNote: -CRA/CUE Hurdle Rate for New Connections: SB 8/CUE 8 -CRA/CUE Hurdle Rate for Takeover: SB 7/CUE 7-No enhancement for units rated SB 9/CUE 9 and belowNBG/SMEBU-SME ADVANC/32/2018 – 19 Date: Fri 12 Oct 2018) 13 Primary Security : Hypothecation of stocks and receivables and other current assets.

14 Collateral Security : Above Rs. 10 lacs to Rs. 500 lacs:a) Existing Accounts (for renewal at existing level): e-SBP Accounts: 100% of advance value SBI & other e-ABs Accounts: 200% of advance value b) Enhancement in existing accounts/ New Connections/ Takeover: 200% of advance value for all accounts

15 Credit Information Report viz. (CIBIL) etc. : Two Credit information reports (one of these essentially from CIBIL) (Minimum Cutoff score for individual CIBIL should be 650 with no major default/delinquency. Individuals with No CIBIL history would also be eligible)

16 Scheme Code : FS09018

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TIE UP WITH BHARATIYA YUVA SHAKTI TRUST (BYST)( NBG/SMEBU-TIEUP/56/2017 – 18 Date: Mon 4 Dec 2017 )

Bharatiya Yuva Shakti Trust (BYST) is a not-for-profit organization that assists Indian youth in transforming new business ideas into viable projects. BYST supports young entrepreneurs by supplementing financing of average Rs.5 lakhs and upper limit of Rs.100 lakhs based on the actual assessment. BYST also provide assistance in business related activities such as training, business plans development, monitoring, mentoring and networking. Our Bank has now entered into an MoU with BYST for sourcing of loans for young entrepreneurs, pan India. Following benefits will accrue to the Bank under the said tieup :- a. BYST will screen and provide the leads with all the necessary documents (as per the check-list provided by the Bank) to the Bank. Bank shall complete the due diligence of the borrower as per the extant instructions. b. BYST will mentor the entrepreneurs for a period of two years and also assist SBI in recovery in case of default. c. BYST will also provide periodic (quarterly) performance report of the entrepreneurs and program progress reports on the project. d. All eligible loans sanctioned under the tie-up will also be covered under Pradhan Mantri Mudra Yojana (PMMY) or Stand Up India (SUI) as the case may be.

BYST’s Role SBI’s Role

1. BYST will screen the trained entrepreneurs and selected entrepreneurs/BYST will submit the proposal as per the checklist provided by the Bank, to nearby branch / convenient branch for further processing.2. Assignment of mentors, within 7 working days of the communication of sanction from SBI to BYST.3. BYST shall arrange for mentoring of all cases for a period of two years. BYST shall assist SBI in recovery, in case default by the entrepreneurs. 4. BYST will provide SBI with periodic (quarterly) business performance report of the entrepreneurs and program progress reports on the project.5. BYST will provide support to SBI in its recovery efforts.

1. SBI will consider the loan proposals of BYST trained candidates as per the SBI rules, schemes and eligibility criteria. The proposals of BYST entrepreneurs will be submitted at branch as per the convenience of the borrower. The proposals will be processed and sanctioned by the branch / respective Small and Medium Enterprises Centre (SMEC)as the case may be.2. Branch/SMECC will scrutinize the application and, if found, suitable for finance will be sanctioned and remaining will be either rejected or asked for resubmission with required documents. Processing of proposals received from eligible candidates and sanction of loan will be at the discretion of SBI and also as per SBI's scheme & eligibility criteria.

1. Target Group : Young entrepreneurs trained by BYST2. Purpose : To extend finance to viable projects of the entrepreneurs trained by BYST3. Nature of Facility : CC/TL4. Quantum of Finance : Min- Need based Max- Rs.100 Lakhs5. Margin : As per applicable schemes 6. Interest Rates : As per applicable schemes (linked to MCLR) Revised Interest Structure wef 010420187. Repayment Period : 5-7 years including holiday period of upto 24 months8. Security : Primary : Stocks and fixed assets created out of SBI loan along with the existing business assets will be the primary security. Collateral : NIL (Covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)/Credit Guarantee Scheme for Stand-up India (CGSSI)/ Credit Guarantee Fund for Micro Units (CGFMU) as the case may be.)9. Upfront fee/Processing fee : As per Bank’s extant instructions.

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SBI “SME e-Biz LOAN”(NBG/SMEBU-SME ADVANC/57/2017 – 18 Date: Fri 15 Dec 2017 )

( NBG/SMEBU-SME ADVANC/64/2017 – 18 Date: Tue 23 Jan 2018 – Renaming)

NEW E-COMMERCE PRODUCT: PRODUCT FOR HIGH VALUE SELLERS ON E-COMMERCE PORTAL FOR CATERING TO OVERALL FINANCIAL NEED OF SELLERS FOR LOAN AMOUNT OF ABOVE RS. 50 LAKH TO RS. 500 LAKH

Product Name SBI “SME e-Biz LOAN”

Purpose To provide financial assistance to registered sellers of e-Commerce portal engaged in selling products through online portal of e-Commerce companies.

Nature of facility Cash Credit Amount of Facility Minimum: Above Rs 50.00 Lakh Maximum: Upto Rs. 500.00 Lakh

Eligible Sellers• Sellers registered on e-Commerce portal for selling products online with at least 6 months track record on any of the following major e-Commerce player i.e. Flipkart, Amazon, Snapdeal, Paytm, Shopclues, Myntra, Jabong • Minimum contribution of online sale must be 1/3rd of the total turnover in the immediate last 12 months. Post disbursement, this condition to be checked quarterly. In case of non-fulfillment of the condition, DP to be adjusted in the proportion to make the condition applicable.

Processing FeeFirst year: 1.00% of limit sanctioned + applicable taxes Second year Onwards: 0.35% + applicable taxes

Security Primary Security: Hypothecation of stocks & assignment of receivablesCollateral Security: Min 35% collateral (in the form of SARFAESI compliant land/building, & liquid securities in the form of Bank Deposits, LIC, NSC, KVP pledged/assigned to the Bank.)Guarantee: Personal guarantee of all the Directors/Partners/Promoters of unit Pricing Collateral 100% and above : MCLR + 1.00 %Collateral between 65% & less than 100%: MCLR+ 2.50%Collateral between 35% & less than 65%:MCLR+ 3.50 %Revised Interest Structure wef 01042018CRA CRA to be conducted and hurdle will be SB10. However pricing and collateral will not be linked to CRA.Limit assessment 25% of the turnover done in the immediate previous 12 monthsthrough all accounts maintained by the unit

Margin Min 20%

Other Conditions• All the sales proceeds online as well as offline to be routed through this account• Apart from the above-specified terms, Bank’s extant instructions would be applicable as per Loan Policy GuidelinesValidity of the facility to the Seller • One year • Renewable at the end of each yearProduct Code 6540-1418 Scheme Code 09099 E-CommerceActivity Code 052501 Retail trade via Mail

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SME MARBLE PLUS(Cir. NBG/SMEBU-SMEMP/27/2018 – 19 Date: Thu 4 Oct 2018)

1 Target Group : All SME units engaged in Marble and other stone activity such as manufacturing, processing, carving, polishing, mining and also trading. Mining License/ other regulatory approvals to be place for units to be eligible under the product

2 Eligibility : a. Existing and new units with credit rating SB-9 /CUE-9 and better. b. Takeover of good units- Hurdle Rate for takeover of the account will be SB-7/ CUE-7 subject to adherence of take over norms as per Bank’s Loan Policy.

3 Purpose of loan : To provide hassle free finance to the Marble, Flespar, Quartz and other Stone Units for financing their multiple requirements including normal working capital/ capital expansion (capex) requirements/ other requirements related to their business activity.

4 CRA/CUE Hurdle Rate : New Connections/ Enhancement: SB-9 /CUE-9 Takeover: SB-7/ CUE-7

5 Type of facility : Cash Credit / Term Loan / Dropline Overdraft & Non Fund Based Limits

6 Quantum of Loan : Minimum: > Rs. 10 lacs, Maximum: Rs. 10 crores

7 Margin (%) : Working Capital: Stocks: 25%; Receivables: 40% Term Loan: 25% LC & BG: Min. 25%

8 Rate of Interest : NBG/SMEBU-SMEMP/27/2018 – 19 Date: Thu 4 Oct 2018

9 Repayment Period : Term Loan / Dropline OD: Max. 84 months (including an initial moratorium not exceeding 6 months) with Annual Review Sanctioning authority may fix the repayment schedule onmonthly/quarterly/half early basis depending upon the cash flows. Working Capital: Annual Renewal

10 Security Primary Security: Working capital: Hypothecation/Pledge of stocks, book debts and other current assets. Term Loan: Charge by way of hypothecation/pledge/mortgage of entire assets created out of bank finance. Collateral Security: Minimum 50% of loan amount. Tangible SARFAESI enabled collateral security (Non-agricultural property) belonging to the borrower or guarantor. Eligible units may be covered under CGTMSE as per CGTMSE guidelines (Trading units: upto Rs. 1 Cr; Services & Mfg units: up to Rs. 2 Cr). Customer has to bear the Guarantee Fee.

11 Stock Statement : Monthly

12 Processing Fee/ Unified Charges : 1% of the Sanctioned limit (Min: Rs. 10,000/-; Max: Rs. 50,000/-)

13 Assessment of Limit : Loans up to Rs. 5 Cr: (Working Capital for MSME units) Minimum 25% of the annual projected turnover Minimum 30% of the annual turnover for units withmin. 25% of sales registered through digital transaction . For Trading Units: Minimum 15% of the annual projected turnover Loans above Rs. 5 Cr to Rs. 10 Cr: (Working Capital) - As per Assessed Bank Finance (ABF) Term Loan: 75% of project cost for all loans

14 Codes : A. Activity Code: 14203 (Other Mining & Quarrying) B. Scheme Code: 9136 (SME Marble Plus)C. Product Codes: Cash Credit 6510-1337 MC-CC-MARBLE PLUS (SSI) 6520-1337 MC-CC-MARBLE PLUS (SBF) 6540-1337 MC-CC-MARBLE PLUS (C&I)Term Loan 6410-1337 MC-TL-MARBLE PLUS (SSI) 6420-1337 MC-TL-MARBLE PLUS (SBF)6440-1337 MC-TL-MARBLE PLUS (C&I) Dropline Overdraft 6511-1337 MC-DOD-MARBLE PLUS (SSI)6521-1337 MC-DOD-MARBLE PLUS (SBF) 6541-1337 MC-DOD-MARBLE PLUS (C&I)

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SME E-SMART SCORE(Cir. NBG/SMEBU-SME ADVANC/34/2018 – 19 Date: Thu 25 Oct 2018) (Cir. NBG/SMEBU-SME SMART/39/2018 – 19 Date: Wed 21 Nov 2018)

NBG/SMEBU-SME ADVANC/46/2018 – 19 Date: Tue 11 Dec 2018

1 Facility Cash credit: Term loana. 3-year ITR and Non-composite GST Return.b. Presumptive tax: where borrowers have filled either ITR4 or ITR 4S return.c. 1 Year ITR: Where borrower is having at least one year ITR

2 Target Group : All MSME Units including Proprietorship Firm/ Partnership. Firm/ Closely held public & private limited company in Small & Medium industrial manufacturing, trading and service sector under SSI, C & l and SBF Segment having an in-principle sanction through Contactless lending platform; currently at: URL for branch user login: www.psbloansin59minutes.com/ sidbi Bank Specific URL for data entry: www.psbloansin59minutes.com/sbi Market URL : www.psbloansin59minutes. com/

3 Purpose To provide hassle free finance for financing their multiple requirements including normal working capital/ Term loan related to their business activity.

4 Eligibility The chief promoter /chief executive should be 18 to 65 years of age. The applicant must match with the parameters set by Bank in CLP. The applicant must obtain a minimum overall score of 60% with a minimum of 50% under each sub-head like Personal Details, Business Details, Collateral Details of our internal scoring model.

5 Assessment of Limit : Projected turnover (maximum of 115% of last year GST sale) Working capital required (20% of ‘ Projected turnover). For Self Employed and Professionals: 50% of Gross annual income as declared in their Income Tax return.

6 Loan Amount Minimum: > Rs. 10.00 lacs Maximum: Rs. 100.00 lacs

7 Interest Rate a. Upto Rs.50.00 lacs of loan amount -- 1 Year MCLR + 3.60%b. For loan above Rs.50.00 lacs upto Rs.100.00 lacs. i. If the existing limit is equal to or less than the limit recommended in CLP, then lower of the existing sanctioned rate of interest or 1 Year MCLR + 3.60% to be charged. ii. If the existing limit is more than the limit recommended in CLP, then higher of the existing sanctioned rate of interest or 1 Year MCLR + 3.60% to be charged. ( Cir dated 01122018)8 Security Primary Security: Working capital: Hypothecation/Pledge of stocks, book debts and other current assets. Term Loan: Charge by way of hypothecation / pledge / mortgage of entire assets created out of bank finance. Collateral Security: In eligible cases, Collateral Security need not be insisted as the loans are to be covered under CGTMSE. If the borrower is not willing to bear the guarantee fee & premium, then collateral security as per Bank's norms need to be obtained. Eligible units may be covered under CGTMSE as per CGTMSE guidelines (i.e. Customer has to bear the Guarantee Fee).Personal Guarantee: Personal guarantee of all the promoters, directors, partners. Third party guarantee in case property offered is in the name of a person other than promoters / directors / Partners wherever applicable.9 Repayment Working Capital: Repayable on demand.Term Loan: Not more than 7 years including moratorium not exceeding 6 months.10 Stock Statement To be obtained quarterly11 Review / Renewal of Advance : As prescribed in Loan Policy from time to time12 CUE Rating & CRA Rating : Waived13 Scoring model Units that are not able to score 60% or more marks in the scoring model will not qualify for consideration under SME E-Smart Score Scheme.

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SBI e-RICKSHAW(Under “Pradhan Mantri Mudra Yojana (PMMY)”)

(Cir.NBG/SMEBU-MUDRA/31/2018 – 19 Date: Fri 12 Oct 2018) ( Cir. NBG/SMEBU-MUDRA/38/2018 – 19 Date: Thu 15 Nov 2018)

1 Purpose : For purchase of e-Rickshaws

2 Eligible Borrowers : Micro Enterprises / units those are in manufacturing, trading and services sector (including individuals).

3 Margin : Up to Rs. 50,000 NIL Rs. 50,001 – Rs.10 lacs 10%

4 Interest Rates : MCLR (1 year) + 2.75% i.e. 11.25% p.a.

5 Processing Fees : Up to Rs. 5 lacs NIL, Above Rs.5 lacs to Rs. 10 lacs - 0.50% of Loan amount(in addition GST as per applicable rates to be recovered)

6 Primary Security : Hypothecation of e-Rickshaw acquired out of Bank’s finance.

7 Collateral : NIL

8 Facility : Term Loan

9 Repayment : 4 years

10 Guarantee Cover : All the loans are to be covered under credit guarantee scheme of Credit Guarantee Fund for Micro Units (CGFMU). Cost of Guarantee cover to be borne by the borrower.

11 Other Conditionsi. The Bank shall restrict finance to e-Rickshaws only in States having approved subsidy in place from theState/Central Government.ii. The e-Rickshaws to be financed shall be duly registered with the Regional Transport Office.iii. Requirement of permit for e-Rickshaw from RTO should be complied with, wherever applicable.iv. The e-Rickshaws to be financed shall be fully insured.v. There shall be availability of authorised battery charging centres in the local area of operations.vi. The driver of e-Rickshaw shall have valid license in his name.vii. The Circles are advised to map the sanctions under the tie-up to the local Business Correspondents (Bcs) for regular recovery of loans.viii. The Circles shall reckon the cost of replacement of batteries at the time of appraisal and have the

feature of deferred disbursement to enable the borrower to replace the batteries in time.

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ADVANCE AGAINST RAILWAYS LETTER OF CREDIT (INLAND/ SIGHT)(NBG/SMEBU-SME ADVANC/57/2018 – 19 Date: Fri 18 Jan 2019)

Control Report Format & DDS & S-2 formats – Cir dated 07032019

Target Group : Vendors (Suppliers/Contractors) of Indian Railway (IR) opting for LC payment. To avail credit facilities for manufacturing, trading & services activities in India on the basis of LC issued by IR.

Purpose : For build-up of current assets needed for business purpose, short term working capital Nature of facility : Fund Based Working Capital.

Assessment of credit limits : Sanction and disbursement of loan is based on the terms of LC order/ terms of the contract. If the milestone achievement or progress of works is stipulated, then limits to be assessed and released accordingly.Working Capital: Scenario 1: Customers not having any working capital limits from Banks/FI’s.Max. FBWC: Limits assessed by adding 2 consecutive Milestone out of number of milestones stipulated in the LC order/contract (sum of these two consecutive milestones should be the highest amount out of various combination of two milestones).Note: If only 2 milestones are as per LC order/contract, then 1st milestone only to be released. 2nd milestone to be released only after satisfying the performance of 1st tranche with railway authorities.Scenario 2: Customer already having working capital facilities from us:

Separate limits to be carved out from the total existing working capital facility for the sales envisaged through LC to Railways as assessed in Scenario 1.

Remaining working capital limits facilities to be assessed as per Bank’s extant instructions, based on orders of other than from IR.Scenario 3: Customer having working capital limits from other Banks:

If customer wants limits against LC amount only: Assessment for working capital limits as per Scenario 1

If customer is agreeable for takeover of working capital limits form other Banks:i) Takeover norms as per Bank’s extant instructions to be complied with.ii) Assessment to be done as per scenario 2.

Type of Loan : WCDLEligible Customers i. New Customers/units.ii. Existing customers already availing credit facilities from us.iii. Takeover of existing units from other Banks/FIs with satisfactory track record.Takeover Criteria Takeover norms as per Bank’s extant instructionsMargin : For working capital limits assessed against LC issued by Indian Railways- 10%For Limits, other than Railway orders backed by LC- As per Bank’s extant instructionsDisbursement To be in tandem with the terms & conditions of LC backed order from RailwaysInterest rate : For working capital limits assessed against LC issued by Railwaysa) Units having CRA /CUE 1 to 5 - MCLR one year (floating) + 150 bps, 10.05 % p.a.b) Units having CRA /CUE 6 to 7 - MCLR one year (floating) + 200 bps, 10.55 % p.a.c) Units with CRA /CUE 8 to 10 - MCLR one year (floating) + 250 bps, 11.05 % p.a.Important : All eligible loans to be covered under CGTMSE, borrower to bear the guarantee fee of CGTMSE, Units if not covered under CGTMSE, SARFAESI compliant collateral security, minimum up to 20 % of limit sanctioned to be obtained.Loan Amount : Minimum Loan Amount: > Rs. 10 lacs, Maximum Loan Amount: Rs. 50 crores

Renewal / Review: Renewal/ Review will be subject to the LC backed orders from Railways. Annually subject to period of the LC, the limits may be renewed at the existing level or with enhancement or at reduced level subject to satisfactory conduct of account and satisfying the eligibility criteria of the scheme.

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MUDRA (PMMY) SME Manual 31.12.20171. NBG/SMEBU-MUDRA/93/2016 – 17 Wednesday,March 01,2017 – Appraisal of Limits2. RABG/RB-AC-AC/3/2017 - 18 Thursday,April 13,2017 – SB OD 5000/-3. NBG/SMEBU-CGFMU/63/2016 – 17 Tuesday,November 08,2016 – CGTMSE 4.NBG/SMEBU-CGFMU/47/2016 – 17 Thursday,September 01,2016- (CGFMU)5. NBG/SMEBU-PMMY/44/2016 – 17 Wednesday,August 31,2016 – Product Code6. NBG/SMEBU-PMMY/23/2016 – 17 Thursday,June 16,2016 – Rejection of Applications Procedure 7.NBG/SMEBU-PMMY/68/2015 - 16 Wednesday,March 09,2016 – New Scoring Model8. NBG/SMEBU-PMMY/20/2015 – 16 Tuesday,June 09,2015 – Scheme Introduced9. NBG/SMEBU-SME ADVANC/30/2017 – 18 Date : Tuesday - 01st August 2017 - Documentation10. NBG/SMEBU-CGFMU/61/2017 – 18 Date: Wed 20 Dec 2017 – CGFMU Eligible Borrowers11. NBG/SMEBU-MUDRA/77/2018 – 19 – 19032019 Handicraft Margin & Int. Subvention

Target Group : Micro enterprises / units. All advances granted on or after 8th April, 2015 to non-farm enterprises in Manufacturing, Trading and Services with credit limits upto Rs 10 lac, are to be classified as MUDRA Loans under PMMY under three categories, such as Shishu, Kishore & Tarun.Shishu – upto 50,000/- ; Kishore >50000 and up to 5 lacs ; Tarun >5 lacs up to 10 lacs.

Purpose : Working Capital requirements, Acquisition of Fixed AssetsSecurity : Primary Security : TL: Hypothecation of Plant and Machinery to be purchased out of Bank finance or Mortgage of Land / Property, created out of Bank finance.CC: Hypothecation of all Stocks and ReceivablesCollateral Security : NIL. To be covered under Credit Guarantee Fund for Micro Units

Margins (for loans > Rs. 50,000/-) Working Capital / Term LoanNot applicable for SHISHU Loans. 10% (as per scheme guidelines of PMMY)

Stock Statement : Yearly as on 31st December every year, other than at the time of sanction

Validity WC / TL to be reviewed annually

Inspection Half YearlyRepayment WC / TL - In 3 - 5 years including a moratorium of upto 6 months depending on the activity / income generation

Rate of Interest :NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018For SBOD (Mudra Loans) in PMJDY revised to One year MCLR plus 3% i.e., at 11% w.e.f. 01.04.2017as per Cir No. RABG/RB-AC-AC/3/2017 - 18 Thursday,April 13,2017.

Upfront fees / Processing Fees NIL for Shishu i.e. upto Rs. 50,000/- For Kishore / Tarun - 0.50% of Loan Amount (plus applicable taxes) Processing Fee Cir dt 18.04.2018

Assessment of Working CapitalA. Estimated Sales for the Current Year (M*12) (as per the Performance shown in the previous Table)B. Working Capital required (31.25% of A) (as per e-Circular no. 1346/216-17 dated 09.01.2017)Eligible Bank Finance (100% of B for SHISHU loans) & (90% of B for KISHORE / TARUN) Assessment of Term Loan – other than Transport Operators(100% of Project Cost for SHISHU loans) & (90% of Project Cost for KISHORE / TARUN) As Retail Trade was not eligible for coverage under CGTMSE, such category of loansare eligible to be covered under Credit Guarantee Fund for Micro Units (CGFMU )CGFMU.

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STAND UP INDIA1. NBG/SMEBU-SUI/9/2016 – 17 Thursday,May 05,2016.- Master Circular2. NBG/SMEBU-SUI/59/2016 – 17 Tuesday,October 18,2016. - Product Code3. NBG/SMEBU-SUI/10/2016 – 17 Monday,May 09,2016. - Product Code4. NBG/SMEBU-CGSSI/45/2016 – 17 Thursday,September 01,2016 – CGSS I5. NBG/SMEBU-SUI/61/2018 – 19 Date: Tue 5 Feb 2019 – TIE UP WITH DICCI & 05032019

The objective of Stand Up India scheme is to facilitate sanction of bank loans between Rs. 10 lakhs and Rs. 1 crore to atleast one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one women borrower per Bank branch for setting up a Greenfield enterprise in FY 2016-17. The enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprisesatleast 51% of the shareholding and controlling stake should be held by either SC / ST or Women entrepreneur.

The scheme, which covers all branches of Scheduled Commercial Banks, can be accessed in three potential ways: � Directly at the branch� Through SIDBI’s interactive Stand up India portal called www.standupmitra.in (accessible at home / branch / through LDM / Common Service Centres (CSCs)). Login id’s and passwords will be provided separately to access the portal.� Through the Lead District Manager (LDM)

The interactive portal has 3 important features viz.i) Handholding support ii) Loan from Banks iii) Guarantee support for Collateral free loans

1. Target Group SC / ST and Women entrepreneurs

2. Purpose To meet all kinds of credit requirement for setting up Greenfield projects under manufacturing, services or the trading sector

3. Type of facilities Composite Loan (Working Capital facilities / Term Loan )

4. Quantum of Finance Minimum – More than Rs. 10 lakhs Maximum – Rs. 1 crore

5. Repayment for Term Loans Maximum of 7 years (including moratorium period upto 18 months)

6. Margin Minimum mandatory margin is 10%. Max. Margin money on composite loan would be upto 25% which will be reduced through convergence with Central / State schemes.

7. RuPay Card RuPay Card to be issued for Cash Credit component.

8. Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018NBG/SMEBU-CGTMSE/17/2017 – 18 dt. 05th July 2017 – CGTMSE Coverd Loans

9. Security Primary: Hypothecation of stocks, machinery, movables, etc. purchased out of Bank’s finance. Credit Guarantee/Collateral: A new scheme for Credit Guarantee for loans under SUI has been notified by GOI with NCGTC (National Credit Guarantee Trustee Company Ltd.) on the lines of CGTMSE. Details will be advised subsequently.10. Inspection CC Limits / Term Loans – Quarterly However, if the account becomes irregular, inspection to be done on monthly basis.11. Documentation As per Bank’s extant instructions i.e. SME documents

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DIFFERENTIAL RATE OF INTEREST (DRI Scheme)(Master Circular No. ABU/LB/DRI/1 Date: 22.04.2009)

Master Cir dated 28032018

1. Eligibility Criteria:i) Family income of the borrower from all sources does not exceed Rs.18000/- in Rural area and Rs. 24000/- in Urban and Semi urban area per annum.ii) Land holding not to exceed 1 acre of irrigated land or 2.5 acres of nonirrigated land.iii) SC/ST borrowers are eligible for finance irrespective of their land holdingsiv) The applicant should not be assisted under any of the subsidy linked schemes of Central/State Government and State owned corporation.v) Physically handicapped persons pursuing a gainful occupation vi) Indigent students of merit going in for higher education who do not get scholarships/maintenance grants from Governmental or educational authority

2. Institutions: Following institutions are eligible for credit under the Scheme:i) Orphanages and women’s homes where saleable goods are made and for which no adequate and dependable source of finance e.g., endowments or regular charities, exist.ii) Institutions of physically handicapped persons pursuing a gainful occupation where some durable equipment and/or continuous supply of raw material is useful.

3. State Corporations for Scheduled Castes and Scheduled Tribes: Banks may route credit under the scheme through State Corporations for the welfare of Scheduled Caste and Scheduled Tribes subject to the beneficiaries of the corporation meeting the eligibility criteria indicated in para 1 and other termsand conditions indicated in the scheme.

4. Quantum of Loan:i) For House Loan Purpose : Rs 20000.00 ii) For Others Purpose : Rs 15000.00

5. Target • Minimum of 40% of DIR advances to SC/ST beneficiaries. 2/3rd of the advances should be routed through Rural/Semi urban branch. • Overall target for the Bank: 1% of the total advances of the bank as on previous year.

6. Lending to Artisans under DRIi) Rural Branches : 10 loans per quarter per branchii) Semi-Urban/Urban Branches : 5 loans per quarter per branch

7. Subsidy : NIL

8. Margin : NIL

9. Rate of Interest : 4% p.a. at Simple rate

10. Security : Hypothecation of assets created by bank loan. No collateral security is required

11. Repayment : 5 years including moratorium period

12. Moratorium period : Suitable moratorium period may be considered.

13. Extend lending under DRI scheme to non-SGSY SHGs : provided all the members of SHG meets individually the eligibility and other criteria under DRI lendings. The lendings to SHGs will be at 4% p.a.

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Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM)

(NBG/SMEBU-NULM/49/2018 – 19 Date: Tue 1 Jan 2019 – Master Direction) (NBG/SMEBU-NULM/51/2018 – 19 Date: Thu 3 Jan 2019 – Interest subsidy claim)

Introduction:1.1 This component focuses on financial assistance to individuals/groups of urban poor for setting up gainful self-employment ventures/ microenterprises, suited to their skills, training, aptitude and local conditions. The component will also support Self Help Groups (SHGs) of urban poor to access easy credit from bank and avail interest subsidy on SHG loans.

Selection of Beneficiary:The Community Organizers (COs) and professionals from Urban Local Body (ULB) will identify the prospective beneficiaries from among the urban poor. The community structures formed under Social Mobilization & Institutional Development (SM&ID) component of DAY- NULM viz. Self Help Groups (SHGs) and Area Level Federations (ALFs) may also refer prospective individual and group entrepreneurs for purpose of financial assistance under SEP to ULB. The beneficiaries may directly approach ULB or its representatives for assistance. Banks may also identify prospective beneficiaries at their end and send such cases directly to ULB.

Educational Qualifications and Training Requirement: No minimum educational qualification is required for prospective beneficiaries under this component. However where the identified activity for micro-enterprise development requires some special skills appropriate training must be provided tothe beneficiaries before extending financial support.

Individual Enterprises (SEP-I)-Loan & SubsidyAn urban poor individual beneficiary desirous of setting up an individual micro-enterprise for self-employment can avail benefit of subsidized loan under this component from any bank. The norms/specifications for individual micro-enterprise loans are as follows:Age: The prospective beneficiary should have attained the age of 18 Years at the time of applying for loan.Project Cost (PC): The Maximum unit Project Cost for an individual micro-enterprise is 2,00,000.₹Collateral Guarantee on Bank Loan: No collateral required. As per RBI Circular RPCD.SME & NFS.BC.No.79/06.02.31/2009-10 dated May 6, 2010 banks are mandated not to accept collateral security in the case of loans up to 10 lakhs extended to units in the MSE sector. Therefore, only the assets created would be₹ hypothecated/ mortgaged/ pledged to banks for advancing loans. The banks may approach Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) setup by Small Industries Development Bank (SIDBI) or any other appropriate guarantee fund for the purpose of availing guarantee cover for SEP loans as per the eligibility of the activity for guarantee cover.

Repayment: Repayment schedule would range between 5 to 7 Years after initial moratorium of 6-18 months as per norms of the banks.

Margin Money: No margin money should be taken for a loan up to 50,000 and for higher amount loans,₹ preferably 5% should be taken as margin money and it should in no case be more than 10% of the project cost.

Type of Loan Facility: Banks may extend finance to individuals for capital expenditure in the form of Term Loan and Working Capital loans through Cash Credit. Banks may also extend Composite Loans consisting of Capital Expenditure and Working Capital components, depending upon individual borrower’s requirement.

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Day (NULM) contd...

Group Enterprises (SEP-G) -Loan & SubsidyA Self Help Group (SHG) or members of an SHG constituted under DAYNULM or a group of urban poor for self-employment can avail benefit of subsidized loans under this component from any bank. The norms/specifications for group based micro-enterprise loans are as follows:

Eligibility Criteria: The group enterprises should have minimum of Three (3) members with a minimum of 70% of the members from urban poor families. More than one person from the same family should not be included in the same group.

Age: All members of the group enterprise should have attained an age of 18 years at the time of applying for bank loan.

Project Cost (PC): The group will be eligible for a maximum loan of Rs. 2 Lakh per member or Rs. 10 Lakh, whichever is lower.

Type of Loan: Loan can be extended either as a single loan to the group functioning as one borrowing unit or each member of the group can be provided individual loans up to 2 lakhs and an overall cap of 10 lakhs based on the principal of joint liability of the group.The principles laid down in the RBI circular on “Budget (2014-15) Announcement Financing of Joint Farming Groups of ‘Bhoomi Heen Kisan’ dated 13th November, 2014” and subsequent revisions should be followed in case of loans to a group.

Type of Loan Facility: Banks may extend finance to groups for capital expenditure in the form of Term Loan and for Working Capital, through Cash Credit Facility. Banks may also extend Composite Loans for Capital Expenditure and Working Capital, depending upon Group’s requirement.

Loan and Margin Money: The Project Cost minus the beneficiary contribution (Margin Money) would be made available as loan amount to the group enterprise by the bank. No margin money should be taken for loan up to

50,000 and for higher amount loans, preferably 5% should be taken as margin money and it should in no case₹ be more than 10% of the project cost.

Collateral Guarantee on Bank Loan: No collateral guarantee is required. Only the assets created would be hypothecated/ mortgaged/ pledged to banks for advancing loans. The banks may approach Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) or any other appropriate guarantee fund as detailed above.

Repayment: Repayment schedule would range between 5 to 7 Years after initial moratorium of 6-18 months as per the norms of the banks.

Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017Revised Interest Structure wef 01042018NBG/SMEBU-CGTMSE/17/2017 – 18 dt. 05th July 2017 – CGTMSE Coverd LoansNULM Interest subsidy claim modifications 03012019NULM Product Codes 07012019

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Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM)

NBG/ABU/PDM-AGRI GEN/18/2018 – 19 Date: Tue 10 Jul 2018 – Master Circular NBG/RBNFMCFI-NRLM/4/2017 – 18 Date: Tue 24 Oct 2017 – Interest Subsidy to Women SHG

1. Background : The Ministry of Rural Development, Government of India launched a new programme known as NRLM now renamed as Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM),by restructuring and replacing the Swarnjayanti Gram Swarozgar Yojana (SGSY) scheme with effect from April 01, 2013. Detailed ‘Guidelines’ were circulated vide our e-Circular No. NBG/RRBLBCSB-LB2 dated 12th July 2013.

2. Women SHGs and their Federations2.1 Women SHGs under DAY-NRLM consist of 10-15 persons. In case of special SHGs i.e. groups in the difficult areas, groups with disabled persons and groups formed in remote tribal areas, this number may be a minimum of 5 persons. 2.2 DAY-NRLM will promote affinity based women Self –help groups.2.3 Only for groups to be formed with Persons with disabilities, and other special categories like elders, transgenders, DAY-NRLM will have both men and women in the self-help groups.2.4 SHG is an informal group and registration under any Societies Act, State cooperative Act or a partnership firm is not mandatory vide Circular RPCD. No. Plan BC.13/PL-09.22/90-91 dated July 24th, 1991. However Federations of SHGs formed at village level, cluster level, and at higher levels are to be registered under appropriate acts prevailing in their States.

Financial Assistance to the SHGs3. Revolving Fund (RF): DAY-NRLM would provide Revolving Fund (RF)support to SHGs in existence for a minimum period of 3/6 months and follow the norms of good SHGs, i.e. they follow ‘Panchasutra’ – regular meetings, regular savings, regular internal lending, regular recoveries and maintenance of proper books of accounts. Only such SHGs that have not received any RF earlier will be provided with RF, as corpus, with a minimum of Rs.10, 000/- and up to a maximum of Rs.15,000/- per SHG.

4. Capital Subsidy has been discontinued under DAY-NRLM:No Capital Subsidy will be sanctioned to any SHG from the date of implementation of DAY-NRLM.

5. Community Investment support Fund (CIF) CIF will be provided to the SHGs in the intensive blocks, routed through the Village level/ Cluster level Federations, to be maintained in perpetuity by the Federations. The CIF will be used, by the Federations, to advance loans to the SHGs and/or toundertake the common/collective socio-economic activities.

6. Introduction of Interest subvention:DAY-NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7%, on all credit from the banks availed by women SHGs, for a maximum of Rs. 3,00,000/- per SHG.

7.1 Opening of Savings accounts: The role of banks would commence with opening of accounts for all the Women SHGs, SHGs with members of Disability and the Federations of the SHGs. The ‘Know Your Customer’ (KYC) norms as specified from time to time by Reserve Bank of India are applicable for identification of the customers. Common application for opening Saving Bank account of SHG,resolution, loan documents viz. Loan application, Arrangement letter, Loan Agreement, Inter-se Agreement by members and Demand Promissory Note / D.P. Note Delivery letter, applicable to SHG Bank Linkage Schemes (Ref: Master Circular on Micro Credit-SHG Bank Credit Linkage, RABG/RB-MCFI-MCFI/10/2016- 17 dated 20th October, 2016) to be used for DAY-NRLM SHGs.

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DAY – NRLM (Contd..)7.2 Lending Norms:7.2.1 The eligibility criteria for the SHGs to avail loans:• SHG should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account.• SHG should be practicing ‘Panchasutras’ i.e. Regular meetings; Regular savings;Regular inter-loaning; Timely repayment; and up-to-date books of accounts;• Grading: eligibility for credit linkage of women SHGs under is determined based on minimum score of 70 out of 100 given to SHG on Grading Formats recommended and circulated by IBA Committee (Format-1: SHG Grading format for Fresh Linkage and Format -2 : SHG Grading Format for Repeat loan) copies enclosed. As and when the federations of the SHGs come to existence, the grading exercise can be done by the Federations to support the Banks.• The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a minimum period of 3 months.7.2.2 Loan amount: Emphasis is laid on the multiple doses of assistance under DAY-NRLM. This would mean assisting an SHG over a period of time, through repeat doses of credit, to enable them to access higher amounts of credit for taking up sustainable livelihoods and improve on the quality of life. The amount of various doses of credit should be as follows:• First dose: 4-8 times to the proposed corpus during the year or Rs. 50,000/- whichever is higher.• Second dose: 5-10 times of existing corpus and proposed saving during the next twelve months or Rs. 1 lakh, whichever is higher.• Third dose: Minimum of Rs. 2 lakhs, based on the Micro credit plan prepared by the SHGs and appraised by the Federations /Support agency and the previous credit History.• Fourth dose onwards: Loan amount can be between Rs. 5-10 lakhs for fourth dose and/or higher in subsequent doses. The loan amount will be based on the Micro Credit Plans of the SHGs and their members.The loans may be used for meeting social needs, high cost debt swapping and taking up sustainable livelihoods by the individual members within the SHGs or tofinance any viable common activity started by the SHGs. (Corpus is inclusive of revolving funds, if any, received by that SHG, its own savings and funds from other sources in case of promotion by other institutes/NGOs.)

7.3 Type of facility and repayment:7.3.1 SHGs can avail either Term loan or a CCL loan or both based on the need. In case of need, additional loan can be sanctioned even though the previous loan is outstanding.7.3.2 Repayment schedule could be as follows:• The first dose of loan will be repaid in 6-12 instalments• Second dose of loan will be repaid in 12-24 months.• Third dose will be sanctioned based on the micro credit plans, the repayment has to be either monthly/quarterly /half yearly based on the cash flow and it has to be between 2 to 5 Years.• Fourth dose onwards: repayment has to be either monthly / quarterly / halfyearly based on the cash flow and it has to be between 3 to 6Years.7.4. Security and Margin: No collateral and no margin will be charged up to Rs. 10.00 lakhs limit to the SHGs. No lien should be marked against savings bank account of SHGs and no deposits should be insisted upon while sanctioning loans.8 Repayment:Prompt repayment of the loans is necessary to ensure the success of the programme. Branches shall take all possible measures, i.e. personal contact, organization of joint recovery camps with District Mission Management Units (DPMUs) / DRDAs to ensure the recovery of loans. 9.Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

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PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

NBG/SMEBU-PMEGP/9/2018 – 19 Date: Fri 15 Jun 2018 – Master Circular(NBG/SMEBU-SMECFL/4/2018 – 19 Date: Sat 21 Apr 2018 – Processing of Loans)

Date: Thu 7 Feb 2019- Master circularEligibility Conditions of Beneficiaries(i) Any individual, above 18 years of age(ii) There will be no income ceiling for assistance for setting up projects under PMEGP.(iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educationalqualification.(iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.(v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.(vi) Institutions registered under Societies Registration Act,1860;(vii) Production Co-operative Societies, and (viii) Charitable Trusts.(ix) Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme ofGovernment of India or State Government are not eligible.

Other eligibility conditions(i) A certified copy of the caste/community certificate or relevant document issued by the competent authority in the case of other special categories, is required to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim.(ii) A certified copy of the bye-laws of the institutions is required to be appended to the Margin Money (subsidy) Claim, wherever necessary.(iii) Project cost will include Capital Expenditure and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office orController of the Bank’s Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be.(iv) Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only.(v) PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible (Para 29 of the guidelines refers).Note: (1) The Institutions/Production Co-operative Societies/Trusts specifically registeredas such and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen and Minority Institutions with necessary provisions in the bye-laws to that effect are eligible for Margin Money (subsidy) for the special categories. However, for Institutions /Production Cooperative Societies/Trusts not registered as belonging to special categories, will be eligible for Margin Money (Subsidy) for general category.(2) Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The ‘family’ includes self and spouse.

Rate of Interest : NBG/SMEBU-INT RATE M/79/2016 – 17 Tuesday,January 24,2017NBG/SMEBU-SME ADVANC/26/2017 – 18 dt 24.07.2017 – CollateralRevised Interest Structure wef 01042018

Repayment schedule : Repayment schedule may range between 3 to 7 years after an initial moratorium.

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PMEGP (Contd...)Quantum and Nature of Financial Assistance Levels of funding under PMEGP

Categories of beneficiaries under PMEGP Beneficiary’s contribution

(of project cost)

Rate of Subsidy (of project cost)

Area (location of project/unit) Urban Rural

General Category 10.00% 15.00% 25.00%

Special (including SC / ST / OBC/Minorities/Women, Ex-servicemen,Physically handicapped, NER, Hilland Border areas etc.

5.00% 25.00% 35.00%

Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.(2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.(3) The balance amount of the total project cost will be provided by Banks as term loan

Implementing AgenciesThe Scheme will be implemented by Khadi and Village Industries Commission (KVIC), Mumbai, a statutory body created by the Khadi and Village Industries Commission Act, 1956, which will be the single nodal agency at the national level.

Identification of beneficiaries:The identification of beneficiaries will be done at the district level by a Task Force consisting of representatives from KVIC/State KVIB and State DICs and Banks.

Bank FinanceThe Bank will sanction 90% of the project cost in case of General Category of beneficiary/institution and 95% in case of special category of the beneficiary/institution, and disburse full amount suitably for setting up of the project. Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital. Working Capital component should be utilized in such a way that at one point of stage it touches 100% limit of Cash Credit within three years of lock in period of Margin Money and not less than 75% utilization of the sanctioned limit. If it does not touch aforesaid limit, proportionate amount of the Margin Money (subsidy) is to be recovered by the Bank/Financial Institution and refunded to the KVIC at the end of the third year.

Village IndustryAny Village Industry including Coir based projects (except those mentioned in the negative list) located in the rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of a full time artisan or worker i.e. Capital Expenditure on workshop/ workshed, machinery and furniture divided by full time employment created by the project does not exceed Rs. 1 lakh in plain areas and Rs.1.50 lakh in hilly areas.Rural Area(i) Any area classified as Village as per the revenue record of the State/Union Territory, irrespective of population. (ii) It will also include any area even if classified as town, provided its population does not exceed 20,000 persons.KVIC Online Portal Khadi & Village Industries Commission (KVIC), the nodal agency implementing PMEGP has recently developed an on-line portal for PMEGP to stream line the process of application flow, fund flow to bring in transparency and better financial management of subsidy amount. Consequently, with effect from 1.7.2016, all loan applications under PMEGP are to be handled through the on-line portal only.

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Please note that the details given in this e-handout cannot supercede any Bank's Instructions/circular guidelines

and strictly for INTERNAL CIRCULATION ONLY.

It is only an attempt to provide the gist of all SME Asset Products at one place to enable the staff to get the details of all SME Asset Products at a glance.

Please refer and follow the Bank's instructions, circular guidelines issued time to time, while processing/sanctioning SME advances.

Please give your suggestions/feedback........

ANV SubbaraoChief Manager (Training)

SBILD, Masulipatnam

Contact No. 99491 30750email address: [email protected]