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iob_bank_cbg_under_satat

Last Updated:07/02/2026
CBG under SATAT

CBG under SATAT – (Compressed Biogas Scheme)

   

Objective

To provide Sustainable Alternative Towards Affordable Transportation (SATAT), for efficient municipal solid waste management and to tackle the problem of polluted urban air due to farm-stubble burning and carbon emissions, Lowering pollution and carbon emission.

Nature and
Purpose of
Advance

Term Loan can be considered for purchase of plant and machineries, construction of factory, Office etc and all other movable fixed assets required for setting up of CBG plant and working capital finance to be considered based on requirement of the project.

Quantum of Loan

Minimum- No minimum

Maximum- No minimum

Eligibility

Compressed Biogas plants across India with minimum designed capacity of CBG plant is 2.0 Tons per day.

Security

Prime security: Hypothecation of stocks / book debts / machineries / EM of factory land & building / charge on assets created out of Bank finance.

Collateral: SARFAESI compliant Immovable property by way of EM of property & other tangible/liquid securities (MMD/FD/LIC policy etc) belonging to the Borrower/ Guarantor with minimum 50% coverage.

Margin

Term loan: Minimum 20% of the project cost (excluding IDC, preliminary /pre-operative expenses, contingencies, and margin on working capital)

Working capital: Minimum 20%.

Repayment

Term loan is repayable in 12 to 15 years from the date of commencement of commercial operation.

Holiday Period

Minimum 6 months to Maximum 24 Months.

Rate of Interest

 

 

Total Spread

Total Interest

Less than Rs. 1.00 Crore:

1 Y MCLR

1.40%

10.25%

Above Rs. 1.00 Crore:

Rating - IOB 1 & IOB 2

1 Y MCLR

1.60%

10.45%

Rating-IOB 3

1.85%

10.70%

Rating-IOB 4

2.10%

10.95%

Rating-IOB 5

2.70%

11.55%

Rating-IOB 6 and above

3.20%

12.05%

*1Y MCLR (8.85% at present)

 

Externally rated accounts:

External rating

Benchmark

Total Spread

Total Interest

AAA

1Y MCLR

1.40%

10.25%

AA

1Y MCLR

1.60%

10.45%

A

1Y MCLR

1.85%

10.70%

BBB

1Y MCLR

2.10%

10.95%

 

Processing Charges

Processing charges @ 0.40% of limit + GST to be collected for cash credit and NFB limits.

Upfront fees @ 0.71% of term loan amount + applicable GST to be collected.

Subsidy

As per notification of the Ministry of New and Renewable Energy, Central Finance Assistance (CFA) of Rs 4.00 Crores per 4,800Kg of CBG per day generated from 12,000 cubic meters of Biogas per day with a maximum of Rs 10.00 Crore per project.

*Conditions apply

*For more details, please contact our nearest branch

*Click here to apply IGOBARdhan Unified Registration Portal  and select your nearest IOB Branch