Eligibility

• Existing MSME borrowers
• Standard accounts enjoying facility under sole/multiple banking excluding SMA2 in the last 6 months.
• Individuals, proprietorship, partnership, societies, TRUST, LLP, Private and Public Limited companies

Purpose

To meet out WC requirements of urgent bulk/ additional orders over and above the regular orders of Micro, Small, Medium Enterprises.

Loan Amount

Need based WC limit of maximum Rs. 25.00 Cr.

Margin

20% that can be relaxed to 10% if orders are from Central/ State government/ PSU/ AAA /AA/ A rated companies.

Rate of Interest

Security

Extension of charge to existing collateral or pari-passu charge in case of multiple banking.

Repayment Period

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

Processing Fee

0.50% of MSME Instafund Limit.

Other Conditions

• If the MSME Instafund is not regularised within the due date, penal interest at 4.00% per annum will be charged over and above the applicable rate of interest.
• Can be sanctioned twice in calendar year.