1. DRS SME Scheme

Debt Restructuring Mechanism : Small and Medium Enterprises (SMEs)

SME Includes: Tiny Industries, Small Scale Industries (SSI), Medium Industries (ME) and Small Service & Business Enterprises.

Eligibility Criterion:

Following viable or potentially viable SMEs are eligible

All non-corporate SMEs irrespective of the level of dues to bank.

• All corporate SMEs, which are enjoying credit facilities from a single bank, irrespective of the level of dues to the bank. 
  
• All corporate SMEs, which have funded and non-funded outstanding up to Rs.10 Crores under multiple / consortium banking arrangement. Accounts involving fraud and malfeasance and / or classified, as "Loss Assets" will not be eligible for restructuring under these guidelines.

Viability criteria:

The unit should become viable in 7 years and the repayment period for restructured debt shall not exceed 10 years.

In no case sacrifice in principal and simple interest shall be considered.

Note: Rate of interest is subjected to change on review of company's performance and the prevailing interest rate scenario after every 3 years from the date of sanction.


2. Credit Facilities to SMEs

SME Includes:

• Tiny Industries: having investment in plant and machinery up to Rs. 25.00 lac. 
  
  
• Small Scale Industry: having investment in plant and machinery up to Rs. 100.00 lac and Rs. 500.00 lac in certain specified items under hosiery, hand tools, drugs, pharmaceuticals and stationary items and sports goods or any other as may be notified by the Central Govt. from time to time as eligibility criterion for SSIs. 
  
  
• Medium Enterprises: having investment above SSI ceiling (i.e. Rs. 100.00 or Rs. 500.00 lac as above) and up to Rs. 1000.00 lac in plant and machinery. 
  
  
• Small Service & Business Enterprises: Industries related service and business enterprises with investment up to Rs. 10.00 lac in fixed assets excluding land and building are eligible for benefits of SSI Sector.

Collateral Security: Loans up to Rs. 5.00 lac can be considered without collateral security provided the applicant has good track record and financial position.

Composite Loan: Composite Loan can be sanctioned up to Rs. 100.00 lac for SSI units.

Note: Rate of interest is subjected to change from time to time.