IOB - "SME EASY"- FAQ

Q1) What is "IOB SME EASY" MSME loan

ANS: It is asset (property/liquid assets) backed loan availed by New/ Existing MSME Units (Including Manufacturing, Service, Professional and Self Employed and Trading coming under the ambit of Micro, Small and Medium Sector as per RBI directives / bank norms) having Sole Banking/ Multiple Banking Arrangement with our bank.

Q2) What are the different types of loans available under the "IOB SME EASY" MSME loan scheme, and for what specific purposes can they be availed?

ANS: Working Capital: Financing for Stocks/ Receivables/ Operational Expenditure/GST payment/ Cash flow mismatch

Term Loan: Purchase of fixed assets such as machineries, equipment's, construction or purchase of factory/ office/ godown/ warehouse/ for interior decoration/ furnishing/ purchase of commercial vehicle.

Demand Loan: Genuine short-term requirements to meet operational expenses like electricity bill payment, staff salary/bonus, rent, trade creditors, Insurance, transport/conveyance etc., and to execute bulk orders. Ensuring sufficient cash generation availability to meet the repayment obligation is mandatory.

Q3) Can MSE borrower avail the "IOB SME EASY" MSME loan without collateral security or third party guarantee?

ANS: No. The loan is backed by Assets. Similar to Loan against property loan given to MSME borrowers

Q4) what is the minimum margin for the "IOB SME EASY" MSME loan?

ANS: Liquid securities - 10% (Fixed deposit/Eligible Insurance Policies).

Liquid Securities - 25% (KVP's/IVP's)

Immovable - 30% of Fair market Value of property, assessed by Bank's panel valuer.

Q5) Is there any minimum and maximum loan amount?

ANS: Yes. Minimum above Rs.10.00 Lacs and no Maximum loan amount Cap/limit

Q6) I am not an IOB customer can I apply for IOB -" SME EASY" MSME loan?

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

Q7) 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.

Q8) What is Easy Boost Facility under IOB SME EASY scheme?

ANS: Borrowers having security coverage of 200% and above can be granted ADHOC facility (To meet emergency or bulk orders) of 20% of working capital limit for a period of 120 days. However additional interest of 1% over sanctioned rate to be charged.

Q9) What are all the discounts, concessions, or freebies are offered under the IOB SME EASY scheme?

ANS:

*Waiver of Cash handling charges and RTGS/NEFT charges for accounts rated up to IOB 3.

*Waiver of 50% of Cash handling charges and 50% of RTGS/NEFT charges for accounts rated IOB 4.

*Borrowers who are willing to cover minimum 50 employees under IOB Suraksha Plan C / SBI GPAI / NIVA BUPA Health Plus PAI (PAI cover for R.20 lacs) will be offered 300 cheque leaves per year at free of cost.

*Waiver of statement charges for borrowers with exposure above Rs.2 crores.

*Free credit cards to individual Borrowers/ Proprietors/ Partners/ Directors/ Guarantors (subject to the eligibility) without Joining Fee.

*Waiver of CERSAI registration charges.