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Scheme For Financing Textile Units

Applicable to
This special scheme is offered to MSME borrowers in five Zones of Bank, namely Ahmedabad, Baroda, Chennai, Jaipur and Rajkot.
Nature of facility Term Loan/Demand loan, Cash Credit and
Non-Fund based limit ie LC & Bank Guarantees
Limit Minimum: Rs. 25 lacs, Maximum: Rs. 25 crores.
  • Working Capital requirement both Fund Based and Non-Fund Based.
  • Financing new project i.e. acquisition / construction of land and building and plant and machinery (including second hand plant and machinery as per Bank guidelines) based on the project cost.

All new/existing units (including taken over from other banks) engaged in textile activity including Job worker /Traders falling under MSME Segment.
The following textile activities may be covered under the scheme:

A) Regulatory:

i)  Manufacturing of :

  • Cotton Fabrics
  • Cotton Yarn
  • Worsted Fabrics
  • Readymade Garments
  • Denim
  • Jute Textiles
  • Viscose Staple Fibre
  • Viscose Filament yarn
  • Acrylic Fibre
  • Texturizing
  • Fibre Intermediates (polyester)
  • Blended yarn
  • Manmade Fibres
  • Warp knitting
  • Circular knitting
  • Dyeing or/and printing unit
  • Grey cloth weaving
  • Embroidery Unit
  • Jari badla/ Jari thread/ malai Dhori
  • Spinning of cotton / synthetic yarn
  • Synthetic-Fabrics
  • Man Made Fibres

B) Baroda SME Gold Card:

Borrower accounts with ‘Standard’ category for the last 1 year subject to internal credit rating of Bank. The constitution of borrower can be Proprietorship / Partnership concerns / LLP / Private Limited Co. / Ltd Co. HUF are not eligible.

Method of assessment of working capital limit As per Bank Guidelines.
Note A: Assessment of limit should be independent of TUFS subsidy ie while calculating DSCR and Margin, projected TUFS subsidy should be excluded.
Rate of Interest The interest rate under this scheme is applicable as per Table A, subject to certain conditions mentioned in Note A:



Rate of Interest

Micro and Small Enterprise BRLLR + SP + 1.50% or as per credit rating whichever is lower, subject to Minimum Obligor rating accepted in Bank.
Medium Enterprise BRLLR + SP + 1.50% or as per credit rating whichever is lower, subject to Minimum Obligor rating accepted in Bank.
SME Expanded MCLR + SP + 2.00% or as per credit rating whichever is lower, subject to Minimum Obligor rating accepted in Bank.


Note A :

  • Internal Credit rating should be carried out and only the accounts with internal rating accepted as per Bank Guidelines, shall be considered for financing.
  • Bank reserve the right to refix the spread as and when deemed fit without prior intimation.
  • For the Exposure upto Rs. 5 crores borrower may opt for ROI Linked to CMR Rating.
  • Bank offers special concessional ROI and allows higher exposure limit for borrowers in Baroda & Jaipur Zone.

Type of Facility

Type of Primary Asset


Cash Credit Stock and Book Debts 25% (minimum)
Term Loan Factory Land & Building


New Plant & Machinery and other misc. fixed assets


Second hand Plant & Machinery (under TUF scheme)


Second hand Plant & Machinery (imported)


Second hand Plant & Machinery (indigenous outside TUF scheme)


  • For working capital facilities : 12 Months
  • For Term Loan: Maximum 9 years (including moratorium period), subject to review every year.
Repayment of Term Loan
  • In suitable monthly Instalment after Initial Moratorium period.
  • Interest to be serviced every month even during moratorium period.
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