IOB - "MSME-INSTA-FUND"- FAQ

Q1) What is "IOB MSME-INSTA-FUND" MSME loan

ANS: Loan to meet the working capital requirements for urgent bulk or additional orders beyond the regular orders of Micro, Small, and Medium Enterprises, up to a maximum of 50% of the sanctioned working capital limit for existing customers with the maximum loan cap of Rs. 25 crore.

Q2) What are the different types of loans available under the "IOB MSME-INSTA-FUND" MSME loan scheme?

ANS: ADHOC Working Capital limit for maximum of 150 days or the expiry of the limit, which ever is earlier in addition to the regular limit.

Q3) Can MSE borrower avail the "IOB MSME-INSTA-FUND" MSME loan without collateral security or third party guarantee?

ANS: Yes. If any existing securities available can be extended. Accounts sanctioned with CGTMSE/ CGFMU/ Hybrid Collateral coverage are also eligible under this scheme subject to a maximum MSME Instafund limit of Rs.1.00 Cr. No CGTMSE coverage is required for the additional ADHOC limit.

Q4) What are the documents to be submitted to avail the additional loan?

ANS: Borrowers with 5 years and 3 years of satisfactory relationship can avail MSME Instafund up to Rs.1.00 cr and Rs.25.00 Lacs respectively based on simple declaration letter mentioning the bulk order details. Remaining borrowers need to submit the proof for orders or requirement of funds.

Q5) I am not an IOB customer can I apply for IOB -" MSME-INSTA-FUND" MSME loan?

ANS: No. Only Existing customers can apply for the loan.

Q6) What is the interest rate of the loan?

ANS: Applicable rate of interest for MSME advances as per Bank's extant circular. Refer lending rates page for RLLR.

Q7) Can the loan under the IOB MSME-INSTA-FUND scheme extended beyond 150 days or another loan availed?

ANS: Yes.

Roll over is permitted for a maximum period of 30 days. Limit can be sanctioned twice in a calendar year. Time gap between two MSME INSTAFUND facility shall be minimum 30 days.

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.