IOB Guarantee Plus - FAQ

Q1) what is IOB-Guarantee-Plus MSME loan

ANS: New/ Existing MSEs coming under ambit of micro and small sector as per RBI guidelines having Sole Banking arrangement with IOB can avail Working capital, Term Loan & Working Capital Term Loan to Purchase of machineries, construction, repair, upgradation, Fresh & additional working capital in form of LC/LG, WCTL upto Rs. 10 Crore.

Q2) Can MSE borrower avail the IOB-Guarantee-Plus MSME loan without collateral security or third party guarantee?

ANS: No collateral security is required as the loan will be secured by CGTMSE up to Rs 5.00 crore and more than Rs 5.00 crore by hybrid collateral coverage scheme. Premium for the coverage shall be borne by the borrower. No Third-party guarantee should be obtained

Q3) what is the minimum margin for the IOB-Guarantee-Plus MSME loan?

ANS: Minimum margin of 20% on stocks & 25% on Book Debts, 20% of the invoice value for purchase of Equipments, Plant & Machinery, construct work shed/ factory premise & Vehicles etc.

Q4) Is there any discount or relaxation in paying CGTMSE?

ANS: No, the borrower has to pay CGTMSE fee as per the latest CGTMSE Fee Structure. However, Separate additional Term Loan(3% of original Term Loan) shall be sanctioned on borrower's request to pay year-on-year CGTMSE fee for the first 3 years. This loan is to be repaid in 36 EMI without any holiday period.

Q5) I am not an IOB customer can I apply for IOB-Guarantee-Plus MSME loan?

ANS: Yes, existing and new customers can apply for the loan.

Q6) what is the interest rate of the loan?

ANS: Applicable rate of interest for MSE advances as per Bank's extant circular refer lending rates page

Q7) can this loan availed along with Central government subsidy?

ANS: yes, If any subsidy scheme (Central / State Govt) is available, the same can be sanctioned under IOB-Guarantee-Plus scheme.

Q8) what is UAM or Udyam? And how to register for it?

ANS: The Udyam registration is the latest procedure of registration for the Micro, Small, and Medium Enterprises. The unique identification provided for Udyam is known as the Udyam registration number. More assistance and apply for UAM refer Free Udyam registration website by ministry of MSME.

Q9) I am doing Business. Am I eligible for loan under MSME ?

ANS: Yes. Further to know about MSME refer here.

Q10) I am an informal MSME. Can IOB help me to Get MSME status?

ANS: Yes. Indian Overseas Bank (IOB) one of the designated agencies in Udyam Assist Platform to generate Udyam Registration Number (URN) and Udyam Assist Certificate (UAC). Contact the nearest branch to get help.