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.
• TL up to Rs. 50 Crore is to be repaid within a maximum period of 84 months including a holiday period up to 12 months.
• TL above Rs. 50 Crore is to be repaid within a maximum period of 120 months including a holiday period up to 18 months.
• Demand Loan is repayable within a period of 12 months

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.