Bank of Maharashtra

Bank of Maharashtra is a public sector bank founded in 1935 and headquartered in Pune. It operates 2,719 branches, with total assets of approximately Rs 393,224 crore on the latest published figures.

Bank of Maharashtra is the smallest of the large public sector banks by network at 2,719 branches, with total assets of about Rs 3.93 lakh crore, and it is headquartered in Pune. Its footprint is concentrated in Maharashtra rather than spread nationally.

Its role in the Credit Guarantee Scheme for Startups. Bank of Maharashtra is one of 40 institutions registered with the National Credit Guarantee Trustee Company as a CGSS Member Institution (NCGTC MLI ID 20, classified as a public sector bank). Member Institutions are the lenders that actually extend credit under the scheme: you borrow from Bank of Maharashtra, and NCGTC guarantees Bank of Maharashtra against your default. That guarantee is what allows the facility to be extended to a DPIIT-recognised startup without collateral, with cover of up to Rs 20 crore per borrower, being 85 percent of the amount in default on loans up to Rs 10 crore and 75 percent above that.

What this means in practice. The concentration is the point. Pune and Mumbai together host a substantial share of India's startups, and a lender whose head office and credit authority sit inside that market can be more responsive on a mid-sized facility than a national bank routing the file elsewhere. Approach the MSME desk directly.

The terms are the bank's, not the scheme's. This is the point founders most often miss. CGSS fixes the guarantee, not the loan. The interest rate, tenure, moratorium, repayment schedule and how the Annual Guarantee Fee is passed through to you are all set by Bank of Maharashtra under its own credit policy, and they differ materially between Member Institutions for an identical borrower. Nor does registration oblige Bank of Maharashtra to lend: it appraises you on its normal credit standards first and applies the guarantee second. Approaching more than one Member Institution is almost always worth the effort.