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IOBOA PROMOTION MATERIALON
MSME Schemes
By Jeetendra Kumar Panda
Video Class: Click Here
Topics covered
1. IOB SME Plus
2. IOB Micro One
3. SME Easy.
4. IOB SME Advance term loan
5. IOB SME Insta Fund
6. IOB SME ADD ON
7. Sanjeevini Plus
8. IOB Engineer
9. IOB SME Contractor
10. IOB - CA
11. IOB SME Equi-P
12. Sagaralakshmi (above Rs 1.00 lakhs)
MSME Schemes13. IOB SME Mahila Plus
14. SME Kanaka
15. IOB Artisan’s Credit Card Scheme
16. IOB General Credit card(IOB-GCC)
17. Rice Mill Plus Scheme
18. IOB GST Ease
19. SME 300
20. IOB SLC MSME
21. IOB- OXY
IOB MSE PlusDetails Description
Target Group Micro and Small enterprises engaged inmanufacturing/service activities which are eligible forclassification under MSE sector as per MSMED Act 2006,and which are eligible for CGTMSE Cover.
Purpose 1. Construction/ purchase of work sheds/ factory premises2. Acquisition of plant and machinery/ equipment3. Working Capital needs.
Quantum Maximum of Rs. 100 Lakhs as a composite loan.
Security Prime: Assets created out of loanCollateral : NIL
Margin For shed: 30% For plant & machineries : 15%
IOB MSE PlusDetails Description
Repayment 5 to 10 years (including holiday period) depending on theproject.
Holiday Period Moratorium of 6 to 18 months depending on the project
Priority Yes
Interest As per the rate currently in vogue
Remarks • We may accept average DSCR of 1.75 with minimumDSCR of 1.5 in any year.• Loan should be compulsorily covered under CGTMSEGuarantee Scheme.• Single documentation for entire amount• ADV/ 521/ 2010-11 Dt: 11.02.2011
IOB Micro One
Details Description
Target Group MICRO ENTERPRISES (only new connections under MicroSector and the scheme is not applicable to existing borrowerclients)
Purpose ONLY NEW UNITS seeking credit facilities with investmentnorms satisfying micro & small units
Quantum Maximum Rs.50.00 lacs (Cash Credit + Term Loan with a ceilingof Rs.22.50 lacs for Term Loan)
Security Prime: Assets created out of loan Collateral : NIL
Margin 15% for Working Capital and 25% for Book debts & Term Loan
IOB Micro One
Details Description
Repayment 84 EMIs for Term Loan (for combined facility as well) Cash Credit to be renewed annually
Holiday Period
As per SME Term loan
Priority Yes
Remarks To be covered under CGTMSE Scheme and the fee to be borne by the borrower
Ref. ADV/ 89/2011-12 Dt: 10 .11.2011.
IOB SME EASY
Details Description
Target group MSME Units (Incl. Mfg., Service, P&SE and R T coming underthe ambit of Micro and Small Sector as per RBI directives/bank norms) having Sole Banking Arrangement with our bank.Individual/Proprietary/partnership/Corporate solely bankingwith our bank
Purpose Working capital requirements, acquisition of machineries/equipment /construction, For meeting short term operationalexpenditure like payment of bonus etc.
Quantum Retail Trade: Max. Rs.5.00 Cr (both FB & NFB)Mfg. & Serv : Above Rs.10 lac to Rs.500 lac
Margin LIC:10%; KVP/IVP 20%; Term dep.: 10%; Imm-30%in non rural& 40% in rural (FSV)
IOB SME EASYDetails Description
Security
Liquid Securities: KVB, IVP, LIC, TDR etc and Immovable properties.Residual value of immovable residential Properties held as securityfor other credit facilities with our bank and which can be enforcedunder SARFAESI act may be accepted subject to following conditions:1. The security shouldn’t be held as prime security for MCC.2. There should be a gap of min 3 years between two valuation
reports unless there is value addition in the security.3. 125% of FSV should be earmarked for existing exposure.4. No borrower should have exposure under Easy Trade Finance and
SME Easy same time.Properties shouldn’t be accepted :Agri properties, Quarry land, lands with no proper access, propertysituated in slums, properties earmarked for development bycompetent authority and paripassu value and properties which can’tbe enforced under SARFAESI.
IOB SME EASYDetails Description
Assessment
Working Capital : The eligible working capital shall be lower of eithervalue of prime security (i.e. property/ liquid securities) less marginOrThe minimum permissible bank finance arrived as per the turnovermethod i.e. 25% of the projected and accepted turnover or 30% ofthe digital portion of the turnover projected.Term Loan: 75% of invoice amount for movable and immovableassetsOr The value of prime security (Property or liquid security) lessmarginWhichever is lowerDemand Loan: Genuine short-term requirement after ensuring thatsufficient cash generation is available to meet repayment obligation.Non-Fund Based Limit- As per existing policy of bank.
IOB SME EASYDetails Description
Repayment TL: max 84 months incl. holiday period of 18 months Demand loan : 12 months
Pre-release Clearance
Concurrent Audit branches- Clearance form Concurrent auditors.Other branches not coming under concurrent audit and headed byscale IV and above can consider sanction and disbursement of limitsthat falls within their discretion under the scheme.All other branches should get pre-release clearance from respectiveregional office before disbursement of limit.For pre-release clearance Regional office to verify :1. Legal Opinion & Valuation report as per norms2. F 3373. Second line certificate4. Compliance of terms and conditions confirmation.5. Vetting document by panel lawyer if applicable.
IOB SME EASYDetails Description
Other Conditions
➢ Unit inspection to be conducted once in three month andproperty inspection is conducted once in six months.
➢ If the value of Prime security (FSV) is 200% and above for theexposure under SME easy scheme, a concession of 1% can beextended on the applicable interest rates.
➢ Third party property also can be accepted provided Individualguarantee is available. For our finance.
➢ Both fund and non-fund based limit can be considered underthe scheme.
➢ External rating is not mandatory.➢ Branch Manager doesn’t have discretion to allow excess over
the limit sanctioned under this scheme.➢ Switchover from ETF to SME Easy can be done during renewal of
the facility.(ADV-464/2019-20, ADV-415/2019-20 & ADV-592/2015-16)
SME Advance Term LoanDetails Description
Target Group Existing SME borrowers with good track record
Purpose For purchase of additional/new machinery during the next oneyear based on growth projections.The borrower can apply at the time of submission of renewalproposal. The borrower is required to make an advance estimateof the term loan requirement for purchase .
Quantum / Margin
10% of original cost of existing plant and machinery or cost ofmachinery to be purchased less stipulated margin or Rs.25 lacswhichever is the least.
Appraisal DSCR needs to be worked out assuming that sales andprofitability are maintained at previous year's level. This shouldjustify repayment capacity. Rate of Interest, security and margin tobe stipulated as per our usual norms and extant guidelines.
Remarks CGTMSE cover may be sought for eligible accounts
IOB INSTA FUND
Details Description
Target group Existing Micro/small & Medium enterprises customers
Purpose To meet working capital requirement of an Micro/SmallEnterprises unit enjoying credit facilities with the Bank toexecute additional /bulk orders over and above the regularorders (for both manufacturing & Service units )
Repayment Maximum 6 months with the option to extend it for another6 months on merits or till the current credit facilities aredue for review/renewal.
Security The current assets created out of the loan should be hypothecated /charged to us. Existing collateral should be charged as security for the insta fund.
IOB INSTA FUNDQuantum & Discretion
Branch Discretion:a) Actual Requirementb) 50% or 30% based on ratingc) Per Borrower Limit vested with BMd) 5 cr
Which ever is lower of aboveFor Branches headed by AGM and above 50% of per borrower limit.For Regional Heads 50% of their per borrower limit.
Rating Relationship with us
Eligible Amount
SME 1&2 1Yr & above 50% of limit subject to max 5 crore
SME 3 1Yr & above 30% of limit subject to max 5 crore
SME 4 3 Yr & above 30% of limit subject to max 5 crore
IOB SME Add On Details Description
Target group Existing SME borrowers with good track record, whoseexisting credit limits are sanctioned by RO/ZO/CO, areeligible
Purpose For purchase of Plant and Machinery, Transport Vehicles, Caretc.,
Quantum Cost of Plant & Machinery/ Equipment, vehicle to bepurchased less stipulated margin OR Rs.25 lacs /borrower ina yr. OR Discretion of Br Manager under the scheme, whichis less.
Security Prime: Hyp of assets created out of loan. Collateral: Existing collateral securities to be extended for the fresh loan also
IOB SME Add On Details Description
Repayment As per SME Financing
Disbursement The loan amount along with margin should be directly paid tothe seller. However if the machinery/ equipment has alreadybeen purchased, the amount can be granted by way ofreimbursement also, subject to satisfactory proof of purchasebut it should be in the same financial year.
Discretion Br Mgrs. in Scale I, II, III – 50% of their per borrowerdiscretion
Scale IV & above– 25 % of their per borr. discretion
Remarks More than one loan can be sanctioned to the sameborrower subject to total loan amount not exceeding thediscretionary powers under the scheme, during the yearDSCR needs to be worked out assuming that sales andprofitability are maintained at previous year's level.
Sanjeevini PLUSDetails `
Target group MSME (Mfg, Services, Trade) & NON MSME Units
Purpose 1. To set up new hospital/nursing home or for acquiring equipmentfor an existing hospital/ nursing homes/ working capital requirementfor purchase of equipment/ ambulances, vans/cars etc.,2. To provide finance to Manufacturers of Health Products formeeting working capital requirement and acquisition of fixed assets.3. To set up Oxygen Plant along with power back for medical use.4. To manufacture permitted drugs (including COVID-19 drugs),Vaccines, Ventilators, PPEs, Inhalation Masks, ICU beds etc.5. To import vaccines and COVID related drugs.To finance logistic firms engaged in critical healthcare supply.6. To finance hospitals against receivables empaneled under PM-JAY.7. To Finance diagnostic centers and pathology laboratories anddialysis center.
Sanjeevini PLUSDetails Description
Eligibility 1. Qualified/ Registered individual medical practitionersrecognized by ICMR including Dental Surgeons, Poly Clinic,Allopathy, Ayurveda, Homeopathy and Unani having practicalexperience of carrying of the medical activity.
2. Manufacturers and suppliers of oxygen cylinders, Oxygenconcentrator, Pulse Oximeters, Ventilators, PPEs, inhalationmasks, ICU beds etc
3. Manufacturers and importers of vaccines and covid relateddrugs.
4. Logistic firms engaged in critical health care supply.5. Diagnostic centers and pathology laboratories/ Dialysis centers
Loan Amount Minimum 10 lakhsMaximum 25 Crore
Margin Term loan – 25%.Cash Credit –Stock- 25% and receivables- 40%BG/ LC- 25%
Sanjeevini PLUSDetails Description
Repayment TL- Maximum 10 years including moratorium period.CC- To be renewed every year.
Moratorium Maximum Moratorium Period- 8 months for construction and 6 month for purchase of machineries.
Prime Security Hypothecation of asset created out of loan.Equitable mortgage of land building, where loan is extended for construction of buidling
Collateral Security
Where only movable asset created- Collateral Security of Min 25% of the Loan amount.Where Value of Prime Immovable Security is more than 25% of loan amount: No collateral If the value of prime immovable security is less than 25% of loan amount the difference between value of security and 25% of loan amount to be taken by way of collateral security or coverage under CGTMSE scheme under Hybrid scheme (Up to 2 crore)
Additional Features
50% concession on locker rent for first 2 yearsScheme is valid till 31.03.2022
IOB Engineer
Details Description
Target group Civil Engineers (Individuals up to 65 yrs. of age)
• Proprietorship Concern. • Partnership Firm. • Partnership with Limited Liability.
Purpose To construct office premises• To purchase furniture & fixtures, fittings and office equipment
such as computers, printers, plotters, books & Other accessoriesetc.
• To Purchase Centering sheets, Spans, props, Column box etc.,To purchase Constructional Machineries like J.C.B Rollers,
Vibrators, Mixer Machines, drillers, earth Rammers, Otherequipment, etc.,
Quantum Maximum eligible amount depending up on the category,requirement on case to case basis. No Max Capping
IOB EngineerDetails Description
Repayment Maximum of 7 years (should not exceed the age limit of 72 yrs.of the borrower) in equal Monthly Installment includingmoratorium period of 3 months. For construction up to 10 yrs.with initial moratorium up to 12 to 18 months only.
Holiday 3 Months/12 to 18 months
Priority Yes. Up to 1 crore per unit
Remarks Members of Civil Engineers Association Affiliated to the federation of All Civil Engineers Associations of the respective State. Should not be RBI Defaulters List.
CIBIL report should be satisfactory. Processing Charges: 0.25 % of loan amount subject to a minimum of Rs.5,000/-
IOB SME CONTRACTOR
Details Description
Target group Individuals, Prop / Partnerships / Pvt. Ltd Companies / Ltd Companies. The applicant contractor needs to be registered with Central Govt./ state Govt. authorities
Purpose For executing contract works
Quantum Above Rs.10.00 Lacs subject to a max Rs. 500.00 Lacs(FB + NFB) in the form of CC/Bills/TL/LG/LC etc.
Margin For NFB: SME-1 to SME -3 rated borrowers: LG - Financial – Min 15 %LG - Performance - Min10 %All others : As per SME Policy
IOB SME CONTRACTOR
Details Description
Security TL: Hyp of assets purchased out of TL.WC: Hyp of stock (construction raw materials), consumablestores, Book Debts (not more than 120 days)Collateral by way of immovable property/ liquid securitieshaving FSV/ market value not less than 120% of limitsanctioned (FB + NFB).
Repayment TL – 5 years ; Holiday : 3 to 6 months
Remarks For SME-1 to SME -3 rated borrowers:Upfront fee for TL – 50% of applicable rateProcessing Fee for TL and CC– 75% of applicable rate.
For others -- As per prevailing guidelines Commn for NFB: For SME-1 to SME-3 rated : 50% of applicable
commissionFor others : As per prevailing Guidelines
IOB - CADetails Description
Target Group
Chartered Accountants & Practicing Cost and worksaccountants individually / jointly or Proprietorship concern ora Partnership Firm/Partnership with Limited Liabilityregistered with ICAI, engaged in the profession ofAccounting/Audit etc.,Age – up to 65 years
Purpose Purchase Car, construction of office premises, acquire readybuilt office premises, cover cost of land and construction,purchase furniture & fixture, fittings and office equipment,computers, Books and other accessories, etc., towardsworking capital and financing receivables
Quantum Varies from Rs.10 Lacs to Rs 125 Lacs depending on the category.
IOB - CADetails Description
Security No collateral security but CGTMSE coverage should be taken if loanamount doesn’t exceed 2 crore. Third party guarantee andcollateral security may be taken if amount exceeds 2 crore.
Margin Term Loan – 20% on cost of construction/ purchase consideration, 20% for furniture and fixtures furnishing other assets car etc.Value of loan should not exceed 50% project cost in case of purchase of site and construction of premises.
Working Capital - 25% against book debts not older than 120 days.
Repayment Maximum of 10 years by EMI ( Including Moratorium period),
Holiday 18-24 Months
IOB SME Equi-P
Details Description
Target Group All MSME units, new and existing facing shortfall in promoter’scontribution (margin money) for capital investments.(Proprietorship, Partnership and Limited Companies)
Purpose To meet the shortfall in promoters contribution for starting a newunit or for expansion of the existing unit
Quantum Is restricted to 10 % of the project/capital cost or Rs 50 lacswhichever is lower
Security PRIME: The SME Equi-P term loan will be secured by extending ourcharge on the fixed assets acquired out of regular term loanCGTMSE : as applicable to other Micro and Small Enterprises
IOB SME Equi-P
Details Description
Margin Being a soft loan, the eligible amount will be funded 100 %by the bank. NIL MARGIN
Repayment Spread over 10 years for new units and 9 years for existingunits including the holiday period.
Holiday Holiday period of 2 years for new units and not more than12 months for existing units.
Processing Charge
1 % of the loan amount or Rs 10000 whichever is lower +GST 18%
IOB SAGARLAKSHMI
Details Description
Target group Women who are engaged in processing of fish into dry fish, fishfeed and other fish based products. Indi./Proprietary/Partnershipfirm.
Purpose Sorting, grading, drying, processing and selling / dry fish / driedand packed fish-Fish and fishery product processing: shell craftproduction Fish fast food counters, Breeding and selling ofdecorative fish for aquarium. Contract cleaning of fish markets.
Quantum Maximum Rs.10,00,000 By way of working Capital / Term Loan forequipment.
Security Prime: Assets created by using the loan and margin amount.COLLATERAL: Nil – To be covered under CGTMSE GuaranteeScheme wherever eligible
IOB SAGARLAKSHMI Details Description
Margin Up to Rs.1,00,000 : NilMore than Rs.1,00, 000 : 15 – 25%
Repayment Within 5 years in monthly installments including initial holidayperiod not exceeding 3 months.
Holiday Not exceeding 3 month
Remarks PROCESSING CHARGES Up to Rs. 1.00 lac - NilAbove Rs. 1.00 lac to Rs 10 lacs – 1 % upfront for TL and Rs 200per lac for working capital.Circular No. ADV / 41 / 2011-12 Dt.18.07.2011.
IOB MSE Mahila PlusDetails Description
Target Group Qualified women (minimum graduate ) - age group of 21 to 60yrs. (SME/ADV/355/2013-14 dt. 10.06.2013)
Proprietorship Concern or a partnership with women in the leadLtd companies with woman as the MD/or a Director in a keyposition
Existing units fully managed by a woman entrepreneur
Purpose To set up manufacturing/service unitsTo upgrade unitsFresh and additional working capital
Quantum Composite loan up to Rs 2 crores for a Manufacturing enterpriseComposite loan up to Rs 1 crore for a Service enterprise
Repayment CC: To be renewed annually TL: 10 years for construction 7 years in Equal Monthly Installments
Holiday New unit: 12 months; others 3 months
IOB SME KANAKA Details Description
Target Group
New/Existing Micro and Small Enterprises engaged in theprocessing of Cashew nuts with OR without Export.
Purpose To meet the capital & WC requirement of new/ ExistingMicro and Small Enterprises engaged in the processing ofcashew nuts.
Quantum Eligible amount as per assessment
Security Prime:TL: Exclusive charge on existing & future – fixed assetsCC: Exclusive charge on existing & future – current assetsLC : document of title to goodsCollateral: depends on CGTMSE or min. 80% of totalexposure
IOB SME KANAKA
Details Description
Margin TL: 15%; for purchase of land 50%CC: 25%; LC:25% deposit margin
Repayment TL: max. 7 yrs. including holiday period CC : subject to renewal
Remarks Rating : Up to Rs.2.00cr: CRRM Model • Above Rs.2.00cr: CRISIL RAM • External Bank loan rating: As applicable Subsidy: as per directions of the agency
IOB’s ARTISAN CREDIT CARD SCHEME
Details Description
Target Group
All existing artisans borrowers enjoying credit limit up to Rs.2 lacs and having satisfactory dealings/artisans involved inproduction/manufacturing process- artisans who havejoined to form SHGs-Beneficiaries of Govt. sponsored loansare not eligible
Purpose To provide adequate and timely assistance to meet theinvestments and working capital requirement in a flexible &cost effective manner in Rural and urban areas.
Quantum Based on Nayak committee recommendation i.e. 20% of theanticipated turn over for Working capital requirement &term loan component subject to a maximum of Rs. 2 lacs.
IOB’s ARTISAN CREDIT CARD SCHEME
Details Description
Security Hypothecation of assets financed-No need to submit stockstatement and other financial statements-Group insurance forbeneficiaries who are registered with Development Commissioner@ 60: 40 premium paid by Govt. & Beneficiary
Margin Up to Rs. 25000/- No margin ;Above Rs. 25000- as per RBI guidelines/Bank’s policy
Repayment Revolving CC-term loan component attracts repayment schedule
Priority Yes
Remarks Card validity three years-require renewal No fee for renewal/fresh
IOB General Credit card (GCC)
Details Description
Target Group
All individuals who are in need of non-farm entrepreneurialcredit, which is eligible for classification under priority sectorcredit, like - artisans, weavers, fishermen, rickshaw owners,self employed persons etc
Purpose The initial investment in fixed assets and /or working capitalrequirement /recurring expenditure of the borrower is to betaken as the base for fixing limit – sanctioned as CC & TL
Quantum Maximum of Rs. 1,00,000/-
ROI MCLR + 0.50%
Security NO Security
IOB General Credit card (GCC)
Details Description
Margin Up to Rs.50000 – NIL Above 50000 – 10 to 15%
Repayment TL : max 5 years CC: generally for 3 years subject to annualreview
Priority Yes
Remarks No cheque book is issuedCoverage under CGTMSE wherever eligible SME/ADV/ 461 / 2013-14 dt 06.03.2014
IOB SME RICE MILLS PLUS
Details Description
TargetGroup
Proprietary, Partnership, Pvt. limited Company, Individual(running rice mills on own basis) – investment in plant &machinery up to Rs.10 Cr .
Purpose To meet financial requirements of rice mills, Poha Millsand Dal Mills.To set up new rice mills and to acquire existing rice mills.Purchase of new & second hand machineries etc.
Quantum TL for construction/purchase of machinery incl. secondhand & also for import of machineriesWC – as applicable for MSME sector.If unit carries only job work basis then it is not eligible forworking capital limit.
IOB SME RICE MILLS PLUS Details Description
Security Prime: Assets acquired out of loan amount &Collateral: Security to cover 75% of the Banks exposureother than plant & machineries.
Margin For stock: 25%,Book debts: 35% (for debt up to 150 days & 50% for 151
days to 180 days) &TL: 25%
Repayment TL: up to 7 yrs. including holiday period. Moratoriumperiod Interest to be funded for new units
Holiday Maximum 12 m for TL
Remarks Processing charges: Rs.220+ GST per lac with a maximumof Rs.2,00,000/-.Ref.: Cir. ADV/ 549/ 2014-15 Dt. :10.02.2015
IOB GST EASEDetails Description
Target group MSME (Manufacturing /Service / trade) Mid /largeThe account should not be in SMA1 or SMA 2 category.
Purpose Financing for delay in input tax credit as working capitaldemand loan
Quantum Three months input credit subject to not to exceed 25% ofspecific existing fund based working capital facility with aminimum of Rs 1 lakhs and maximum of Rs 500 Lakhs
Margin 25% on stocks and Book Debts. The CA certificate to beobtained for 3 months outstanding input tax credit.
Repayment Door to door tenor of 9 months.Moratorium period- 3 monthsRepayment period- 6 months repayment or receipt of inputtax creditInterest to be serviced as and when debited.
IOB GST EASEDetails Description
Security Prime:Hypothecation of all chargeable current assets of the borrower.Hypothecation of assets purchased (computer, software furnitureetc) for implementation of GST.Collateral : The existing security to be extended.Eligible accounts to be covered under CGTMSE/ CGFMU/ CGSSI
Other conditions
Under taking letter to utilize the funds for working capital purposeand not to use for any other speculative or capital market.During the currency of this facility no excess can be permitted. Ifadhoc is sanctioned, adhoc and this facility combined togethershouldn’t exceed the maximum eligible amount.Undertaking letter should be obtained from borrower mentioningto pay the loan dues out of input credits received or authorised todebit the account in case input is directly credited to the account.
IOB SME 300Details Description
Target group Individuals, Proprietary and partnership concerns running Micro andSmall units engaged in Manufacturing / Services / Retail TradeSectors.The borrower age should 18-65 years Across identified 250 branches
Purpose To meet all business needs including WC requirements and to take upincome generating activities / Self Employment
Quantum
Loan to be released in two stages.First Stage 60% and then 40% after 30 days or 20 daily instalments.BCs to be used for recovery of daily collections.
Margin 10% of the project cost
Individual/Proprietary
Partnership firm
1st Dose 50000 1000002nd Dose 100000 200000
IOB SME 300Details Description
Collateral Nil, The limit is to be covered under CGTMSE/ CGFMU
Repayment 12 EMIs to be converted to daily collection amount. Maxholiday period of 1 month can be considered.
Remarks Assessment of loan should be simple assessment based onpurchase/ sales/ stocks and recycling capacity of the unit.Finance can be extended considering upto 4 recycle periods.Insurance cover is optional upto 1 lakh loan amount and aboveit is compulsory.BCs are entitled to get 1% as commission on total amount ofrecoveryCircular Ref : ADV/84/2016-17 dated 03.03.2017
IOB SLC MSMEDetails Description
Product Name IOB Standby Line of Credit for MSME
Target Group MSME (Mfg/Services/ Trade)Individual/ Prop/ Partnership/ LLP/ LTD co
Purpose To meet temporary liquidity mismatch of MSME units arising outof delayed realization of receivables, receipt of GST input taxcredit (including for exports) and other business requirements
Type of loan Working Capital Demand loan
Eligibility Existing units having credit limit upto 5 crore with satisfactorycredit report of two years.The account should be standard and should not be under SMA2or watch category. SMA0 & 1 can be considered.No excess or adhoc should exist on the date of sanction.Latest CIBIL to be obtained and it should be satisfactory.
IOB SLC MSMEDetails Description
Eligibility All the irregularities pointed out if any in the COIR, LFAR, StockAudit, CALRM, Credit Audit, Concurrent Audit and RBI Inspectionshall be rectified/ compiled.All terms and conditions of earlier sanction should be compiledwith.
Loan amount The maximum loan amount under the scheme is capped at thelowest of the following:a) WCDL up to 25% of existing fund based facilityb) Delayed receivables which are not considered under regular
limit subject to maximum 180 days less margin.c) 1.25 crore
Margin As stipulated for existing limits
Rating The eligible borrower should have minimum internal rating asunder:Upto IOB 5 under RAM ratingUpto IOBR4 under CRRM rating
IOB SLC MSMEDetails Description
Rate of interest 0.50% above the rate of interest sanctioned for the cash creditfacility.Penal interest will be charged if not repaid within stipulatedtime.
Security Prime: Hypothecation of all chargeable current assets of thefirm.Collateral : The existing security to be extended for this limit.
Guarantee Extension of personal guarantees and also CGTMSE/ CGFMU/CGSSI/ ECGC coverage has to be done.
Disbursal and Repayment
Borrower can avail sanctioned amount in one go or in tranches.Maximum repayment period is 12 months from date of disbursalor validity of sanction whichever is earlier.
IOB SLC MSMEDetails Description
Discretion Branch head, RLCC & ZLCC are empowered to sanction theWCDL subject to the following :a) Upto 25% of existing fund based facility sanctioned by any
layer including MCBb) Upto 25% of the respective delegated authority, under the
borrowal limitc) Lower of a or b to be considered as WCDL
Other conditions
Under taking letter to utilize the funds for working capitalpurpose and not to use for any other speculative or capitalmarket.During the currency of this facility no excess can be permittedincluding Kapoor committee recommendations.Sanctioning authority to ensure no multiple finance.Compliance of all regulatory/ Mandatory/ formalities (eg regdmemorandum, CERSAI, ROC etc)End use of the loan to be verified.
IOB OXYDetails Description
Product Name IOB- OXY
Target Group MSME (Mfg/Services/ Trade)Prop/ Partnership/ Companies/ Trust/ LLP
Type of loan Term loan and LC (Capex) (Tenor 60 months includingmoratorium period of 6 months)
Purpose Term Loan- fora. Setting up of Oxygen Plants with power backup in the
hospital/ nursing homes for medical use.b. To finance units engaged in manufacturing of liquid Oxygen,
Oxygen Cylinders etc.Non Fund Based (Letter of Credit):LC- Capex LC to aid import of capital goods.
Eligibility Existing hospitals & Nursing Homes.Manufacturer and suppliers of medical oxygen, Oxygencylinders.
IOB OXYDetails Description
Loan amount The maximum loan amount under the scheme is capped at 2crore (Both TL and LC)
Margin Term Loan/ LC:For existing customers – 5%For New Customers – 10%
Rating The eligible borrower should have minimum internal rating asunder:Upto IOB 5 under RAM ratingUpto IOBR4 under CRRM rating
Prime Security Asset created out of loan
Collateral Security
Upto 10 lakhs- NIL, to be covered under CGTMSE/ CGFMU.Above 10 lakhs – Collateral proposed –25%If Collateral security is forth coming then loan may be coveredunder any Credit Guarantee Scheme.
IOB OXYDetails Description
Disbursal & Repayment
Disbursement can be in one go.
Repayment :TL- Max 5 Years including Moratorium period of 6 months.LC- on due date by debit to term loan.
Validity Till 23.03.2022
Reference ADV/ 179/ 2021-22Dated 24.05.2021Department- MSME
