Eligibility

• Individual/Proprietorship Firms maintaining Current Account with our Bank for a minimum period of 12 months and not availing any active working capital facility from any Bank/FI.
• HUF, Non-residents are not allowed.
• Must be GST registered with GST returns filed at least for the last 12 months.
• Udyam Registration is mandatory.

Purpose

• Working Capital limit to provide hassle free credit to meet working capital requirements related to business activity or for expansion of business for Existing to Bank (ETB) customers with minimum vintage of 12 months.

Loan Amount

• Minimum - Rs. 5.00 Lakh
• Maximum - Rs. 25.00 Lakh

Assessment

It will be calculated as minimum of following:

• 20% of B2B sales (net of sales returns) as per GST returns filed during the last 12 months.
• 20% of bank statement credit as per bank statement during the last 12 months.

Margin

25% on stock/ Book Debts not older than 3 months

Rate of Interest

As per ROI applicable to MSME loans based on RLLR.

Security

• Prime Security: Hypothecation of assets created out of the Bank finance along with entire current assets and non-current assets (Present & Future).
• Collateral Security: Nil, to be covered under CGTMSE.

Repayment Period

• Repayable on demand
• Limit would be valid for 365 days post which review would be carried out.

Processing Fee

0.50% of the loan amount

Stock Statement/Book Debt Statement

• To be obtained on Monthly basis.
• Quarterly CA/SA certified Stock/Book Debt Statement to be submitted.

Other Details

• Customers can do the online journey through the link available in Bank's website. (Link: https://egst.iob.in/egst/). Before starting the journey, the following must be ensured:

1. GSTIN and all other relevant details must be updated in URN.

2. GST API access is enabled on GST website.

3. Mobile No. registered with Bank, URN & GST is operational to receive OTP.

4. Current Account statement for last 12 months must be downloaded through Net Banking facility.

• Upon completion of journey by the customer, Sanction Letter will be generated and sent to the registered e-mail id of the customer.
• Customers can visit Branch and complete disbursement formalities.

Other Features

• Fully digitalized sanction
• Instant disbursal in few minute.