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SSI Composite Loan Limit Raised to Rs 1 Crore

No longer current — replaced by Revised working capital guidelines for SSI units up to Rs 5 crore with updated composite loan terms

Source: Reserve Bank of India · RBI/2004-2005/235 · issued 26 Oct 2004 · ~2 min read

Quick answerRBI has enhanced the composite loan limit for SSI entrepreneurs under the Single Window scheme from Rs 50 lakh to Rs 1 crore, effective October 26, 2004, to improve credit flow to small-scale industries.

What changed

The composite loan limit for SSIs under the Single Window scheme was increased from Rs 50 lakh to Rs 1 crore. This follows a previous enhancement from Rs 25 lakh to Rs 50 lakh in June 2003. The change was announced in the Mid-Term Review of the Annual Policy Statement for 2004-05.

What it means for you

Banks can now offer higher working capital and term loan limits under a single composite loan to SSI borrowers, reducing the need for multiple facilities. This simplifies credit access for small entrepreneurs and may increase loan demand. Lenders should update their internal lending policies and sanctioning limits accordingly.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Update internal circulars and loan processing systems to reflect the new Rs 1 crore composite loan limit for SSIs.
Train branch and credit officers on the enhanced Single Window scheme limits and documentation requirements.
Communicate the revised limit to all controlling offices and branches for immediate implementation.
Monitor SSI loan applications to ensure smooth credit flow under the enhanced limit.

Who it affects

All Scheduled Commercial Banks including RRBs and Local Area Banks, SSI entrepreneurs and small-scale industrial units, Bank branch managers and credit officers handling SSI lending

❓ Common questions

Regulatory timeline

Stated effective date effective October 26, 2004
Decoded by BankPulse 2026-06-19 21:44 IST
Superseded by — Revised working capital guidelines for SSI units up to Rs 5 crore with updated composite loan terms
Status change: superseded 08 Jul 2026, 13:14 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new composite loan limit for SSIs under the Single Window scheme?

The limit has been raised from Rs 50 lakh to Rs 1 crore, as per the RBI circular dated October 26, 2004.

Does this change apply to all scheduled commercial banks?

Yes, it applies to all scheduled commercial banks, including Regional Rural Banks (RRBs) and Local Area Banks.

What was the previous limit before this enhancement?

The previous limit was Rs 50 lakh, which was set in June 2003, up from Rs 25 lakh earlier.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Superseded by Revised working capital guidelines for SSI units up to Rs 5 crore with updated c

📜 Read the original circular — full text as issued by RBI

RBI/2004-2005/235
 RPCD.PLNFS.BC.No . 42 /06. 02.31/2004-05 

 October 26, 2004

 The Chairman/Managing Director

 All Scheduled Commercial Banks

 (Including RRBs & Local Area Banks) 

 Dear Sir,

 Credit Facilities for Small Scale Industries (SSIs)- Enhancement 
 of Composite Loan Limits

 Please refer to our letter RPCD. PLNFS. No. 2292/06.02.28 (i) 
 /2002-03 dated June 13, 2003 in terms of which banks were advised to increase 
 the limit of the composite loan from Rs. 25 lakh to Rs. 50 lakh through ‘Single 
 Window’.

 2. In this connection, please refer to paragraph 81 
 of the Mid-Term 
 Review of Annual Policy Statement for the year 2004-05 dated October 26, 2004 
 (copy of the paragraph enclosed). In order to facilitate smooth flow of credit 
 to SSIs, it has been decided to enhance the composite loan limit for SSI entrepreneurs 
 from Rs.50 lakh to Rs.1 crore.

 3. We shall be glad if you please issue necessary instructions 
 to your controlling offices/branches in the matter for appropriate action.

 4. Please acknowledge receipt.

  Yours faithfully,

 (G. Srinivasan)

 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-2005/235 · issued 26 Oct 2004. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2008&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.