To frame cluster based schemes for providing assistance to a pool of borrowers engaged in common business activity in a particular geographical area
Identification of Cluster
- To be identified as per potential available in the cluster.
- Minimum 30 units should be active within the cluster.
- A Cluster may be defined as a geographical area within a range of say 200 km to 250 km.
- All the units in the cluster should have proper backward/forward integration/linkages And/or
- Cluster identified by UNIDO ,Ministry of MSME
Purpose of Finance
For meeting the Fund Based (Working Capital / Term Loan) and Non fund based (BG/LC) Requirements of units/borrowers in a particular cluster.
Nature of Facility
Working Capital, Term Loan and NFB (LC/BG ) limits
Quantum of Finance
The quantum of finance to an individual borrower in a specific cluster should be need based and to be assessed as per requirement of business.
Eligibility criterion for individual borrowers under cluster
- All business entities engaged in manufacturing /services and should be classified under MSME, as per MSMED act.
- All business entities should have valid GST Registration, wherever it is applicable.
Security criterion for individual borrowers
CGTMSE covered accounts:
- CGTMSE coverage should be obtained in all eligible accounts.
- Coverage under Hybrid Security Product of CGTMSE to be encouraged.
Non CGTMSE Covered accounts:
- For Working Capital :Minimum CCR: 0.65
- For Term Loan /Composite Loan: Minimum FACR:1.00