IOB Mahila Samriddhi - FAQ

Q1) What is IOB-Mahila - Samriddhi MSME loan

ANS: "IOB Mahila Samriddhi" is tailored scheme specifically to meet the needs of GenNext women entrepreneurs. New/ Existing MSEs 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) What are all the benefits offered to women borrower under IOB-Mahila - Samriddhi MSME loan?

 ANS: 0.25% concession on applicable interest rate of normal borrowers. Loans up to Rs.50.00 Lacs - Nil Processing Charges/ Upfront fee for women MSME borrowers. Waiver of charges for first 100 Cheque leave per calendar year. Waiver of RTGS/ NEFT charges in Cash Credit account through internet Banking.

Q3) Can MSE borrower avail the IOB-Mahila - Samriddhi 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

Q4) What is the minimum margin for the IOB-Mahila - Samriddhi MSME loan?

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

Q5) 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.

Q6) I am not an IOB customer. Can I apply for IOB-Mahila - Samriddhi MSME loan?

ANS: Yes, existing and new customers can apply for the IOB-Mahila - Samriddhi loan.

Q7) what is the interest rate of the IOB-Mahila - Samriddhi loan?

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

Q8) 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-Mahila - Samriddhi scheme.

Q9) 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.

Q10) I am doing Business. Am I eligible for loan under MSME ?

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

Q11) 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.