MSME CASH FLOW BASED LENDING (MUDRA STP)

Purpose & Nature of facility

Need based collateral free Term Loan (TL)/Cash Credit (CC) loan to eligible borrowers for working capital/fixed asset related requirements.

Loan Application

Loan can be applied through Jansamarth Portal(https://www.jansamarth.in/apply/iob)

Loan Amount

Maximum Rs. 10 Lakhs

Eligibility

Individuals/Proprietorship Firms, Partnership Firms, LLP and Pvt Ltd Companies having existing business and good track record/turnover in their operative account with satisfactory credit history.

Udyam Registration is mandatory.

CIBIL score: Minimum 680/-1 in case of NTB or no credit history

Assessment of Loan Amount

1. For Term Loan:

Arrived on invoice value after reducing stipulated margin or Rs. 10 Lakhs (whichever is lower).

2. For Working Capital:

25% of previous financial year's turnover/sales or estimated sales, whichever is lower subject to maximum Rs. 10 Lakhs.

Rate of Interest

Up to Rs. 50000/-: RLLR

Above Rs. 50000/- up to Rs. 1000000/-:

RLLR plus a spread of 1.75% per annum compounded monthly.

Margin

For Loans up to Rs. 50000/-: NIL

For loans with limits above Rs. 50000/-:

A. Term Loans:

B. Working Capital:

1. Working Capital against hypothecation of raw materials, work in progress, finished goods etc.

2. Working Capital against Book Debts/Receivables (not older than 3 months)

Loans above Rs 50,000/-: 25%

Repayment

1. Term Loan: Maximum 60 months

Repayment shall be in equal monthly instalments (non-EMI) and interest to be serviced as and when debited including interest debited during the holiday period.

2. Working Capital: To be renewed yearly; repayable on demand. Interest to be serviced as and when debited.

Security

Primary Security: Hypothecation of assets created out of the Bank finance.

Collateral Security: NIL

Loan to be covered under CGTMSE/CGFMU as per guidelines.

Stock Statement/Book Debt Statement

Monthly stock/book debt statement to be submitted as per extant norms.

Processing Charges

As per latest Service Charges circular in force.

NO CHARGES INCLUDING CIBIL CHARGES FOR CREDIT FACILITIES UP TO RS. 50,000/-

Documentation Charges

As per latest Service Charges circular in force.

NO CHARGES INCLUDING CIBIL CHARGES FOR CREDIT FACILITIES UP TO RS. 50,000/-

Insurance Coverage

Comprehensive insurance coverage on all types of risks for the full value of the assets. The borrower will bear the insurance charges.