Eligibility

• Existing MSME borrowers with Udyam Reg. No
• Standard accounts enjoying facility under sole/multiple banking excluding SMA2 in the last 6 months.
• Individual/ Proprietary/Partnership firm/ Societies/ Trust/ LLP/ Pvt Ltd/ Public Limited company

Purpose

• To meet out WC requirements of urgent bulk/ additional ordersover and above the regular orders of Micro, Small, Medium Enterprises(as per revised MSME classification)

Loan Amount

• Need based WC limit of maximum Rs. 25.00 Crore

Margin

• Minimum Margin requirement - 20%
• 10% margin for orders from Central/ State Govt./ PSU/AAA/AA/A rated companies.

Rate of Interest

• For loans upto Rs. 1 crore - RLLR+1.75%
• For loans above Rs. 1 crore - As per RAM/External Rating

Security

• Current assets created out of the loan should be hypothecated/charged to the Bank.
• Existing collateral should be charged as security for the Instafund too.
• In case of Multiple banking/consortium paripassu charge to be created.

Repayment Period

• 150 days or validity of limit, rollover for maximum of 30 days.

Processing Fee

• 0.50% of MSME Instafund Limit

Other Conditions

• Limit cannot coexist with Adhoc /Excess facility
• Instafund limit should not be subsumed in the subsequent enhancement. Enhancement shall be done only after 45 days.
• Borrowers with satisfactory relationship of 5 years can avail limit up to 1 Crore based on simple declaration
• Borrowers with satisfactory relationship of 3 years can avail limit up to Rs. 25 Lakhs based on simple declaration
• If the MSME Instafund is not regularised within the due date, penal interest of 4% will be charged.