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Eligibility
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- 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
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Purpose
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- 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)
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Loan Amount
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- Need based WC limit of maximum Rs. 25.00 Cr.
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Margin
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- Minimum Margin requirement - 20%
- 10% margin for orders from Central/ State Govt./ PSU/AAA/AA/A rated companies.
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Rate of Interest
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- The rate of interest shall be based on internal rating of the account.
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Security
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- 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.
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Repayment Period
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- 150 days or validity of limit, rollover for maximum of 30 days.
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Processing Fee
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- 0.50% of MSME Instafund limit
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Other Conditions
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- 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.
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