Eligibility

• Existing MSME borrowers with Udyam Reg. No
• Standard accounts enjoying facility under sole/multiple banking excluding SMA1 & SMA2 in the last 6 months.
• Individual/ Proprietary/ Partnership firm/ Societies/ Trust/ LLP/ Pvt Ltd/ Public Limited company

Purpose

• To meet out WC requirements of urgent bulk/ additional ordersover and above the regular orders of Micro, Small, Medium Enterprises(as per revised MSME classification)

Loan Amount

• Need based WC limit of maximum Rs. 25.00 Cr.

Margin

• Minimum Margin requirement - 20%

• 10% margin for orders from Central/ State Govt./ PSU/AAA/AA/A rated companies.

Rate of Interest

• The rate of interest shall be based on internal rating of the account.

Security

• Current assets created out of the loan should be hypothecated/charged to the Bank.

• Existing collateral should be charged as security for the Instafund too.

• In case of Multiple banking/ consortium paripassu charge to be created.

Repayment Period

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

Processing Fee

• 0.50% of MSME Instafund limit

Other Conditions

• Limit cannot coexist with Adhoc/Excess facility.
• Instafund limit should not be subsumed in the subsequent enhancement. Enhancement/Fresh credit facility shall be effective only after 15 days.
• Borrowers with satisfactory relationship of 5 years can avail limit up to 1 Cr based on simple declaration.
• Borrowers with satisfactory relationship of 3 years can avail limit up to Rs. 25 Lakhs based on simple declaration.
• If the MSME INSTAFUND is not regularised within the due date penal charges of 2.00% plus applicable GST will be charged.