IOB Tejas FAQ

Q1) what is IOB-Tejas MSME loan

ANS: A Green Financing scheme to provide financial assistance for sustainable development initiatives (Renewable Energy). To systems up to 2 MW capacity for captive use of MSME's.

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

ANS: Yes.

Scenario 1 - Existing IOB borrower with relationship of 3 years, no additional collateral, extension of existing collateral may be done, no CGTME required.

Scenario 2 - Existing IOB accounts with 3 years relationship, under sole/multiple banking are covered by CGTME/hybrid security for additional facility minimum 25% collateral security coverage to be ensured and CGTMSE coverage is not required

Other Borrowers- Minimum 35% collateral coverage. CGTMSE coverage is not required

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

ANS: 10% margin for existing accounts rated IOB 1 to IOB 4 with 3 years of relationship & 10% margin for new accounts rated IOB 1 to IOB 4 with no net loss in last 3 years.

For all other applicants, minimum margin shall be 20% of the Project Cost

Q4) Is there Additional repayment burden for my firm to avail this loan?

 ANS: Post installation of solar unit, electricity cost savings shall cover at least the monthly repayment obligation of the IOB-Tejas MSME Term Loan.

Q5) Is there any minimum and maximum loan amount?

ANS: Yes. The minimum loan amount is above Rs. 10 lakhs. And maximum loan amount is Rs. 9.00 crores for 2 MW. (Cost of project for 1 MW is Rs.5.00 crores)

Q6) I want loan amount less than Rs.10 lakhs to install Solar Rooftop / Ground Mounted grid-connected. Can I avail from IOB?

ANS: Yes. You can Avil loan under IOB Surya scheme and can be applied here.

Q7) I am not an IOB customer can I apply for IOB-Tejas MSME loan to install Solar Rooftop / Ground Mounted grid-connected systems?

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

Q8) Whether insurance for Solar Rooftop / Ground Mounted grid-connected required?

ANS: Yes. Comprehensive Insurance with bank clause to be taken for prime (Solar Rooftop / Ground Mounted grid-connected) and collateral securities.

Q9) 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.

Q10) 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-Tejas scheme.