Pradhan Mantri MUDRA Yojana (PMMY)
● PMMY (Pradhan mantra Mudra Yojana) was launched for extending finance to micro enterprises in manufacturing, trading and service sector
● Loans up to Rs.10 lakh sanctioned to the above sectors and overdrafts up to Rs.10,000.00 granted in PMJDY accounts are to be classified as MUDRA loans.
● Micro Units Development and Refinance Agency Ltd (MUDRA) was launched by the Hon’ble Prime Minister on April 8, 2015 as a new financial entity for developing and refinancing last mile financial intermediaries like Banks, NBFCs,
● MFIs etc; who are in the business of lending to smaller of the micro enterprises
● The Pradhan Mantri MUDRA Yojana was launched to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
● The loans given to nonfarm enterprises under micro enterprises segment up to Rs.10 lakh for income generation activities with effect from 8th April 2015 shall be classified as MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY) and branded accordingly.
● In addition to the above, the overdraft amount of Rs.10000.00 sanctioned in PMJDY Savings Bank accounts shall also be classified as MUDRA loans under PMMY.
Depending upon the loan quantum, the MUDRA loans are to be further categorized Into three groups as under:
| Slab Category | Category |
| Loans up to Rs.50000.00 extended to Micro Enterprises | SHISHU |
| Loans from Rs.50001 to Rs.500000.00 | KISHORE |
| Loans from Rs.500001 to Rs.1000000.00 | TARUN |
The Straight Through Process (STP) of Shishu Mudra loan needs minimal intervention from branch. The system has the following capabilities:
* KYC validation.
* Udyam Registration Certificate verification.
* Eligibility Check based on the set of business rule engines.
* End to end processing of loan
* Digital document execution (e- stamping & e-signing).]
Eligibility Criterion for Shishu Loans through STP
a. Applicant should be having a running active account with our Bank for the last sixmonths.Joint Accounts are not eligible under this process.
b. Only borrowers with constitution Individual/ Proprietorship are eligible.
c. Maximum eligible loan amount for sanction can be upto 4 times of average monthly balance of the last six months (0in Savings / Current account) subject to a maximum ofRs. 50,000/-.
d. There should not be any cheque return due to insufficient fund.
e. There should not be more than three cheque returns due to any reason other thaninsufficient fund.
f. Registration with Udyam portal is mandatory.
g. Consumer CIBIL scores of individual applicant /proprietor/promoter should not be less than 700.
h. System will calculate the eligibility based on average monthly balance in the SB/CA account.
i. Business turnover will be captured on declaration basis.
j. Loans will be sanctioned in the form of term loan only, for a period of 12 to 36 months.
k. Purpose of loan shall be for business needs.
l. ROI and other charges as applicable to Shishu loans as per the extant bank guidelines.
CIC Scores:
Uniform Credit scores of all 4 CICs [CIBIL, CRIF, EQUIFAX, and EXPERIAN] for risk grades are:
1. CIBIL
2. CRIF
3. EQUIFAX
4. EXPERIAN
| RISK GRADE | Scores | Risk Description |
| CS: 1 | 750 & above | Low Risk |
| CS: 2 | 749-700 | Normal Risk |
| CS: 3 | 699-650 | Moderate Risk |
| CS: 4 | Below 650 | High Risk |
CIBIL MSME RANK (CMR)
● Applicable to Existing & New MSME loans with aggregate Loan quantum (Present & Proposed) of above Rs.10 lakhs upto Rs.10 crores
● CMR measures MSMEs on a rank scale of 1 to 10, 1 being the best rank and 10 being the worst.
● This is in addition to delegation of powers based on Internal Risk Rating.
● CMR will be automatically generated along with Commercial Credit Information Report at the time of generating the same.
● Wherever two (CIRs) are to be obtained, branches/offices shall obtain one from M/S CIBIL including CMR and another report from any of the CICs.
● Exemption of applicability of CMR guidelines while restructuring of MSME accounts
● In case of loans under Hybrid Security model of CGTMSE, CMR guidelines in terms of delegation of power linked to security coverage shall be applicable for the quantum of loan over and above CGTMSE covered amount.
● Exemption of Linking of CMR with availability of security coverage (Prime & Collateral) for determining Sanctioning Authority in case of CGTMSE covered accounts.
EXTERNAL CREDIT RISK RATING (ECAI)
* Minimum threshold for obtention of ECAI rating in respect of allexposures increased from Rs. 10 crores to Rs.25 crores
* Additional interest at 0.25% to be charged in respect of all externallyunrated exposures above Rs. 25 crores to Rs 100 Crores and 0.50% inrespect all externally unrated exposures above Rs 100 Crores.
Bank accepted domestic credit agencies i.e.
1. Credit Analysis & Research Ltd. [CARE]
2. CRISIL Ltd.
3. India Rating Ltd. [Formally Fitch]
4. ICRA Ltd &
5. Brickwork Rating India Pvt Ltd Likewise,
International Credit Rating Agencies are FITCH, MOODYS & Standard & Poor.