Govt. of India vide Gazette notification S.O. 2119(E) dated 26.06.2020 (Annexure-I) has notified revised criteria for classifying the enterprises as Micro, Small and Medium enterprises and the revised definition is effective from 1st day of July 2020.
| Sector |
Existing Definition |
Revised Definition |
| Manufacturing |
Services |
Manufacturing & Services |
| Micro Enterprise |
Investment in Plant and Machinery does not exceed Rs.25/- Lacs |
Investment in equipment & Instruments does not exceed Rs.10/- Lacs |
The investment in Plant and Machinery or Equipment does not exceed one crore rupees AND turnover does not exceed five crore rupees |
| Small Enterprise |
Investment in Plant and Machinery More than Rs. 25/- Lacs but does not exceed Rs.5/- Crores |
Investment in equipment & Instruments More than Rs. 10/- Lacs but does not exceed Rs.2/- Crores |
The investment in Plant and Machinery or Equipment does not exceed ten crore rupees AND turnover does not exceed fifty crore rupees |
| Medium Enterprise |
Investment in Plant and Machinery More than Rs. 5/- Crores but does not exceed Rs.10/- Crores |
Investment in equipment & Instruments More than Rs. 2/- Lacs but does not exceed Rs.5/- Crores |
The investment in Plant and Machinery or Equipment does not exceed fifty crore rupees AND turnover does not exceed two hundred and fifty crore rupees |
Manufacturing Enterprises i.e. enterprises engaged in the manufacture or production, processing or preservations of goods with investment in Plant & Machinery as stated above.
Service Enterprises i.e. Enterprises engaged in providing or rendering services and whose investment in equipment as specified above. (Original cost excluding Land & Building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006).
Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investments criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.
Our bank has for internal purposes given focused attention to finance all Commercial enterprises i.e. enterprises which may be outside the purview of regulatory definition of SME but having turnover up to Rs 250.00 crores and new infrastructure and real estate projects where the project cost is up to Rs. 50/- crores by treating them as part of SME segment. ln case of new projects, where the estimated sales turnover in the first full year of commercial operation ('12 months) is up to Rs.250/- Crs.
The loans and advances offered by Bank of Baroda for MSME Units can be used for the basic needs of
- Acquisition of factory, land and construction of building spaces.
- Purchase of plant and machinery including lab equipment, testing equipment, etc.
- Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills.
- Temporary additional assistance for meeting the urgent needs of raw material.
- Additional monitory assistance for any eligible purpose.
Rate of Interest
Competitive pricing linked to Repo rate/MCLR
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