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Last Updated on: 03/07/2023



  • Existing MSME borrowers
  • Standard accounts enjoying facility under sole/multiple banking excluding SMA2 in the last 6 months.
  • Individuals, proprietorship, partnership, societies, TRUST, LLP, Private and Public Limited companies


To meet out WC requirements of urgent bulk/ additional orders over and above the regular orders of Micro, Small, Medium Enterprises.

Loan Amount

Need based WC limit of maximum Rs. 25.00 Cr.


20% that can be relaxed to 10% if orders are from Central/ State government/ PSU/ AAA /AA/ A rated companies.

Rate of Interest

Amount Total Spread

Rating - IOB 1 to 2

RLLR + 0.75%

Rating - IOB 3 to 4

RLLR + 1.25%

Rating - IOB 5

RLLR + 1.75%

Rating - IOB 6

RLLR + 2.50%


Extension of charge to existing collateral or pari-passu charge in case of multiple banking.

Repayment Period

150 days or validity of limit, rollover for maximum of 30 days.

Processing Fee

0.50% of MSME Instafund Limit.

Other Conditions

  • If the MSME Instafund is not regularised within the due date, penal interest at 4.00% per annum will be charged over and above the applicable rate of interest.
  • Can be sanctioned twice in calendar year.

* For any further detail, please contact our nearest Branch or call on 1800 425 4445 or 1800 890 4445 (Tollfree)