The status of Tiny Enterprises may be given to all Small Scale units whose investment in plant & machinery is up to Rs. 25 lakhs, irrespective of the location of the unit.

Small Scale Service & Business Enterprises (SSSBEs):

Industry related service and business enterprises with investment up to Rs. 10 lakh in fixed assets, excluding land and building will be given benefits of small scale sector. For computation of value of fixed assets, the original price paid by the original owner will be considered irrespective of the price paid by subsequent owners.

Small Scale and Ancillary Industries:

Small Scale Industrial units are those engaged in the manufacture, processing or preservation of goods and whose investment in plant and machinery (original cost) does not exceed Rs. 1 crore. These would, inter alia, include units engaged in mining or quarrying, servicing and repairing of machinery. In the case of ancillary units, the investment in plant and machinery (original cost) should also not exceed Rs. 1 crore to be classified under Small Scale Industry.

The investment limit of Rs.1 crore for classification as SSI has been enhanced to Rs.5 crore in respect of certain specified items Click here for list of 140 items under hosiery, hand tools, drugs pharmaceuticals and stationery items & sports goods by the Government of India.

Medium Enterprises:

Units with investment in plant and machinery in excess of SSI limit and up to Rs.10 crore may be treated as Medium Enterprises (ME). The definition may be reviewed after enactment of the Small and Medium Enterprises Development Bill.

Joint / Co-Financing of SME Units by Bank & APSFC:

MoU was signed with APSFC on29.12.2005 for Joint / Co-financing of the units with APSFC would be undertaken wherever necessary .
Projects involving term loans upto Rs.5.00 crores, APSFC will finance the entire amount of term loan and the Bank will fund the entire working capital. Non-Fund Based facilities will be sanctioned by Bank.
Bigger projects with requirement of more than Rs.5.00 crores of term loan, the term loan will be sanctioned on shared basis with of APSFC not exceeding Rs.20.00 crores, the excess over Rs.20 Cr of the term loan and 100% of working capital facilities will be financed by bank.

Joint / Co-Financing of SME Units by Bank &SIDBI

MoU was signed with SIDBI on06.09.2005. or Joint / Co-financing of the units with SIDBI would be undertaken wherever necessary.
Joint financing / co-financing shall be extended to projects relating to SME sector, service sector and development of infrastructure.
Initially this arrangement is rolled out at important Small and Medium Entriprises {SME} industrial centres at Hyderabad, Chittore, Vijayawada, Rayadurg and Kushaiguda.
The focus shall be to make available timely and adequate credit to tiny units & also explore possibilities ofsynergies in Micro Credit operations and cluster Development.
A common letter of sanction detailing the terms & conditions of sanction shall be issued to the borrower by the Bank.
Generally the Bank shall finance working capital facility to the borrower and the Term Loan shall be financed by Bank and SIDBI in equal proportion or in such proportion or only by SIDBI as may be mutually agreed to between the two parties.

Brief note on small-scale industries.
Strengthening of credit delivery to women particularly in tiny and SSI sector.
Andhra bank specialized SME branches, address, and telephone numbers.
SME charter.
Internal rating matrix for small & medium enterprises & pricing of loans.

Credit risk assessment of the borrowal account.
Credit rating system (CRS).
Pricing of SME product based on Internal Rating Matrix

External rating matrix for small & medium enterprises by SME rating agency of India ltd.(SMERA) & pricing of loans.
List of small scale service and business (industry related) enterprises (SSSBEs).
List of activities that are not recognised as SSSBE´s.
Composite loan scheme.
Open cash credit (OCC).
Non-fund based limits.
AB Laghu Udhyami Credit Card- (LUCC).
Artisans Credit Card (ACC) scheme.
KVIC -Margin Money Scheme - rural employment generation programme (REPG).
Loan scheme for financing power tools- AB Power Tools (shakti).
National equity fund scheme (NEF) of SIDBI (soft loan assistance).
Mahila Udyam Nidhi Scheme (MUN) - soft loan assistance.
Technology upgradation fund scheme (TUFs) for textile & jute industries in SSI Sector.
Credit linked capital subsidy scheme (CLCSS) for technology upgradation in specified industries under SSI.
Credit guarantee fund trust for small industries (CGTSI).
Mutual credit guarantee scheme in association with ALEAP & CGTSI for women entrepreneurs.
AP Industrial Investment Promotion Policy 2005-2010.
List of 114 Reserved Items for Exclusive Manufacture in the Small Scale Sector.
Joint/Co-financing of SMEs with APSFC & SIDBI.

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