Eligibility

• Existing and New MSME borrowers
• Borrowers under both sole banking & multiple banking arrangement are eligible.
• Individuals, Proprietorship, Partnership, LLP, Limited Companies.
• Udyam Registration No. is mandatory for all MSME units

Nature of Facility

• Working Capital by way of Cash Credit, Letter of Credit & Letter of Guarantee and Term Loan / Demand Loans

Purpose

• Working Capital: Financing for Stocks / Receivables / Operational Expenditure/GST payment/ Cash flow mismatch
• Term Loan: Purchase of fixed assets such as machineries, equipment’s, construction or purchase of factory / office / godown / warehouse / for interiors decoration / furnishing / purchase of commercial vehicle.
• Demand Loan: For meeting short term operational expenditure like electricity bill payment, staff salary/ bonus, rent, trade creditors, insurance, transport/ conveyance etc., and to execute bulk orders. Ensuring sufficient cash generation availability to meet the repayment obligation is mandatory.

Loan Amount

• Minimum - above Rs. 10.00 Lacs and Maximum - No ceiling.

Margin

• Liquid Securities: Life Policies: 10% (Surrender Value)
• KVP/IVP: 25% (Face Value)
• Term Deposit: 10% (Present Value)
• Immovable Property: 30% of Fair Market Value (FMV) of immovable properties

Rate of Interest

Collateral Security

• Working Capital - FB & NFB: Hypothecation of fully paid stock and book debt.
• Term Loan: Hypothecation/Mortgage of assets created out of the Term Loan.

Repayment Period

• Cash Credit is repayable on demand.
• Demand Loan is repayable within a period of 12 months
• Repayment period for Term Loan to be fixed considering the cashflow of the borrower, subject to maximum period of 120 months including holiday period of up to 12 months, wherever applicable.
• Holiday period may exceed up to 18 months on case-to-case basis, however, it should require prior approval from one layer above the sanctioning authority under whose discretionary powers the proposed credit limits fall.

Processing Fee

• Working capital - 0.50% of loan amount
• TL - 1% of loan amount (Max Rs. 50.00 Lakhs)
• Borrower under Multiple banking who wants to Bank solely with us by taking over of credit facilities from other financial institutions will be offered waiver of 50% processing charge/upfront fee under SME easy.
• Borrowers under this scheme who is ready to open 100 or more employee's salary account will be offered flat Rs. 10000/- discount on applicable processing charges.

Other Conditions

• CERSAI Charges waived.
• Waiver of cash handling/ NEFT/RTGS charges for accounts rated up to IOB 3 and 50% for IOB 4.
• Borrower willing to cover minimum 50 employees under any of PAI schemes will be offered 300 free cheque leaves per year.
• Waiver of statement charges for borrowers with exposure above Rs. 2 crores.
• Free credit cards to individual Borrowers/ Proprietors/ Partners/ Directors/ Guarantors (subject to the eligibility) without Joining Fee.