SME Smart Line of Credit
Overview
Availability of timely and adequate credit has always been a matter of concern for the MSME Sector. MSMEs stand to lose out on emerging business opportunities, due to lack of want of access to credit, when needed. Keeping that in view, IDBI Bank has introduced this Product in which financial assistance pre-approved composite loan is offered to the MSMEs.
The product details are as mentioned below:
| Sr. No. | Field | Content |
|---|---|---|
| 1 | Eligible Segments | All MSME clients as defined by MSMED Act, 2006 |
| 2 | Facility | Composite loan with the following components
Term Loan Working Capital (Fund Based and Non-fund Based) |
| 3 | Loan Amount | Maximum : Rs. 500 lakh for corporate borrowers Maximum : Rs. 250 lakh non-corporate borrowers |
| 4 | Purpose of Advance | Term Loan: For capital expenditure, modernization, expansion, retiring of high-cost debt Working Capital: To meet working capital requirement |
| 5 | Tenor | Term Loan: Max 5 years Cash Credit: Max 12 months |
| 6 | Pricing | Linked to Bank Base Rate and Rating |
| 7 | Security | Primary: Hypothecation of assets/ Financed stock/Book Debts
Collateral Security: In the form of immovable property such as residential /commercial, or other liquid security |
| 8 | Guarantee | Personal Guarantee of the borrowers/promoters to be obtained. |
| 9 | Margin | Depending upon the nature of the facilities |
| 10 | Processing Charges | Upto 1% |