MSME Finance MSME Finance takes care of the funding needs of Micro, Small and Medium enterprises.

Keeping in view the specific requirements of these units, IDBI Bank has introduced a range of attractive products. The products are designed to cater to various segments among MSME borrowers. The Bank has the products that cater to all the stakeholders in a value-chain viz., the vendors, the manufacturers as well as the dealers. In addition there are tailor-made products for special category of borrowers such as Medical Practitioners, Transport Operators , Professionals & Self-employed etc. With a view to make business easy for the Micro and Small Enterprises(MSEs), the Bank has introduced collateral free loans . The Bank not only offers finance to its MSME customers but also takes care of their all banking needs under one roof with full range of other banking products and services. The Bank is in constant endeavour to introduce new products with a view to offer wide array of solutions to the MSME units IDBI BANK SME PRODUCTS:

Sulabh Vyapar/ Business Solutions (Loan for traders/Service Sector) Dealer Finance/ Dealer Solutions Vendor Financing/ Vendor Solutions Funding under CGFMSE (Collateral Free Loans) Loans to Small Road & Water Transport Operators Finance to Medical Practitioners Loans to Professionals & Self-employed Lending Against the Security of Future Credit Card Receivables Laghu Udhyami Credit Cards (LUCC) Property Power (Loan Against Property) SME Smart Line of Credit

Sulabh Vyapar/ Business Solutions Traders act as a vital link between the manufacturers of goods/commodities and the consumer. The product aims to provide hassle free finance to traders and to meet their business and financial needs at competitive interest rates. Any individual or a firm (partnership or proprietorship) engaged primarily in buying and selling mercantile goods is eligible for this mode of finance. IDBI Bank offers solutions to all the financial needs of the wholesalers/traders/retailers under the Product.

Sr. Field No 1 Eligible Segments

Contents Traders and Service Sector viz. Wholesalers, Retailers e.g., Super market, Malls; also service sectors like restaurants, hotels, travel, entertainment etc. Fund Based: Over Draft /Cash /Term Loan/Bill Discounting Non Fund Based: LC/BG Up to Rs. 500 lakh Interest Rate linked to Bank Base Rate and scoring model Primary: Hypothecation of stocks, receivables, assets financed by bank. Collateral:

Facility

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Loan Amount Pricing Security

Immovable Residential or Commercial property Loan amount up to 90% of the property value 25% on Stock & Book Debts 25% for Term Loan (New Assets)

Margin

Processing Up to 1% of the loan amount Charge

Dealer Finance Programme Dealers are one of the important channel partners through whom a substantial volume of business is conducted by most of the manufacturers. IDBI Bank's "Dealer Finance Programme" is designed in such a way such that it leads to a better liquidity position by providing various facilities to the dealers, thereby improving the overall business environment.

Sr. Field No 1 Eligible Segments 2 Facility

Content

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Distribution chain partners comprising dealers, stockists, distributors, etc. Overdraft, Cash Credit, Term loan. Other working capital facilities like Bill Discounting. Non-fund based facilities: LC / BG. Purpose OD/ CC: Working capital. TL: Acquisition of fixed assets, renovation of premises, etc. Loan Amount Minimum: Rs.10 lakh Maximum: Rs 500 lakh Margin 25% Margin Tenor OD/ CC: One year. TL: Up to 5 years with interest reset clause. Other working capital facilities on case-to- case basis Security Exclusive first charge on all assets created out of Bank Finance Personal Guarantee (PG) of the proprietor / partners Collateral: In the form of immovable property/ liquid security. Pricing Interest Rate linked to Bank Base Rate. Processing As per Banks Extant Guidelines. Charges

Vendor Financing Programme Realization of funds tied at various points of the value chain is one of the primary concerns of those involved in the business of manufacturing & supplying of various kinds of goods. Funds are required by the manufacturers/suppliers at two stages of the production viz., the manufacturing stage (Accounts Payable Cycle) and the post-manufacturing stage (Accounts Receivable Cycle), while in the former, funds are required to acquire the raw-materials, in the

latter it's required for smooth functioning till the produces are sold and realized into cash. IDBI Bank's "Vendor Finance" product is so designed such that all the links in the value chain always remain adequately funded, thereby leading to a smooth functioning for the vendor.

Sr. Field No 1 Eligible Segments 2 Nature of Loan Facility 3 4 5 Purpose Pricing Security

Content All Vendors of large Corporates /Original Equipment Manufacturers (OEMs). Overdraft / Cash Credit Letter of Credit, Bill Discounting /Financing against Invoices To fund the manufacturing and receivable cycle Interest Rate linked to Bank Base Rate. Pre sale funding: Post sale funding:

First Charge on current assets. Second charge on the fixed assets of the vendor on reciprocal basis with the term lenders. (if any)

Accepted Bill / invoice by the authorised officials of OEM

Personal Guarantee of directors/ partners / sole proprietor. 6 Processing As per bank's extant guidelines. Fee

Funding Under Credit Guarantee Scheme for Micro and Small Enterprises (CGMSE) Providing security for the loan availed by the micro/small enterprises units (MSEs) has been found to be a major roadblock for their inability to access banking systems. Keeping this in view, the Government of India and SIDBI had set up "Credit Guarantee Fund Trust for Micro & Small Enterprises" (CGTMSE). On the basis of the guidelines issued by CGTMSE, IDBI Bank offers collateral free loans up to Rs. 1 crore and enable MSEs realize their dreams.

(FUNDING UNDER CGMSE) Sr. Field Content No. 1 Eligible Segments Should be a Micro/ Small Enterprise (manufacturing/ services) as defined under MSMED Act and by RBI. Should not appear in the defaulters list of RBI, ECGC, CIBIL etc. 2 Purpose / Facility

Fund Based: Working Capital & Term Finance for capex/ takeover of existing loans. Non-Fund based limit viz., Bank Guarantee (BG) and Letter of Credit (LC). Minimum: No minimum amount Maximum: Rs. 1 crore. Cash Credit: 12 months. Term Loan: Max 5 years. Bill Discounting: Max 90 days for inland; Max 180 days for foreign bills. Letter of Credit: Max 90 days for inland; Max 180 days for foreign LCs. Bank Guarantee: Not to exceed 12 months. Interest Rate linked to Base Rate. Primary: Exclusive charge on current and fixed assets.

Loan Amount

Tenor

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Pricing Security

(Primary security is the asset created out of the credit facility extended to the borrower and / or which are directly associated with the business / project of the borrower for which the credit facility has been extended)

No Collateral / Third party guarantee

Loans to Small Road & Water Transport Operators (SRWTOs)

Road & Water Transport Operators play a key role in the socio-economic development of the nation by providing transport and communication services to the society in general and the industry in particular. This product enables various transport operators acquire fleets of vehicles/ vessels thereby offering cheap yet safe and convenient solutions to transport related issues. Sr. Field No. 1 Eligible Segments Content

All goods / passenger transport vehicles including light Commercial vehicles, auto-rickshaws, taxi-cars, motor-buses and lorries Small refrigerated vans, bulk carriers for carrying petroleum/ edible oil Water transport units such as small boats, launches, etc. Borrower must have relevant prior experience in transport business. Term loan Cash Credit/ Overdraft Bank Guarantee Min. 1,00,000/Max. 2 crore OD/ CC/ BG 12 months. TL Up to 5 years.

Facility

Loan Amount

Tenor

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Pricing Security

Interest Rate linked to Bank Base Rate. Exclusive Charge on assets financed Collateral as per Bank's norms. Personal guarantees of the promoter directors in case of limited companies Depending upon the nature of the facilities As per Banks Extant Guidelines.

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Guarantee Margin Processing Charges

Finance to Medical Practitioners If you are a doctor or a medical practitioner, we have the right product that takes care of your need for financial assistance for day-to-day business requirements, setting-up /up-gradation of a new/existing clinic or capacity expansion plans.

Sr. Field No 1 Eligible

Content All medical practitioners/ doctors/

Segments

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Facility Purpose

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Loan Amount Tenor Pricing Security

Guarantee

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clinics Minimum Qualification: MBBS/ BAMS/ BDS/ BHMS / GAMS. Term loan & Overdraft/ Cash Credit OD/CC: To meet Working Capital requirements Term Loan: For Purchase of specialized medical equipment, Expansion of infrastructure in existing clinic/ hospital, Expansion of infrastructure in existing clinic/ hospital, etc. Minimum: 50, 000/ Maximum: 2 crores Term Loan: Up to 7 years Linked to Banks Base Rate. Term Loan: Exclusive Charge on assets financed. Working Capital: Exclusive charge on all the current assets. Collateral: Up to 50% of the loan amount. Personal guarantee of the promoter directors (in case of limited companies) As per nature of the loan.

Loans to Professionals & Self-employed Service sector is the biggest contributor to India's growth story, accounting for more than 50% of the GDP. With a view to provide financial assistance to those who are professionals and selfemployed and engaged in service activity for the different sectors of the economy this product has been designed.

Sr. Field Content No 1 Eligible All the Professionals and Self-Employed Segments persons including:

Chartered Accountants, Company Secretaries, Engineers, Architects, Surveyors, Contractors, Management Consultants

Doctors/Medical Practitioner, Healthcare Centres Packaging, Storage & Warehouse Services Transport/Taxi Services, Travel & Tour Operators,Travel Agents Event Management, Publicity & Media Coverage

Facility

Purpose

Fund Based: 1. Over Draft / Cash Credit 2. Term Loan Non Fund Based: Bank Guarantee & Letter of Credit OD/Cash Credit: To meet working capital requirement Term Loan: For purchase of premises for conducting business, equipments, computers, furniture, fixtures, undertaking development expansion, additions, repairs and renovation of business premises and infrastructure

Loan Amount Tenor Pricing Security

Minimum: 1 lakh Maximum: 500 lakh Term loan: Up to 7 years

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Interest Rate linked to Bank Base Rate. Primary: Book debts, stocks and Assets created out of loan proceeds Collateral: Security in form of immovable property such as residential house / flat / bungalow/ commercial property etc

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Margin Depending on the nature of the loan. Processing As per Banks extant guidelines Charges

Lending Against the Security of Future Credit Card Receivables In today's environment, there has been a phenomenal change in the way business is run and payments are made. More and more number of people are taking to electronic payments by

means of credit or debit cards. IDBI SME product "Lending against Future Credit Card Receivables" - provides financial assistance to the business entity accepting payments through credit/debit cards.

Sr. Field No 1 Eligible Segments 2 Facility

Content Reputed Restaurants, Hotels, Large Petrol Pumps, IATA approved Travel Agents, Tour Operators etc. Over Draft Term Loan: For acquisition of fixed assets, renovation of premises, etc. Up to Rs 500 lakh Overdraft: One year. Term Loan: Up to 3 years. Interest Rate linked to Bank Base Rate. Primary: Hypothecation of future card receivables. Collateral: Mortgage of residential/commercial properties for appropriate value. As per bank's extant guidelines.

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Loan Amount Tenor Pricing Security

Processing Charges

Laghu Udhyami Credit Cards LUCC Scheme is for the Existing borrowers belonging to Small business units, retail traders, artisans, village industries, small scale industrial units and tiny units, professionals and self employed persons, whose dealings with the bank have been satisfactory for the last three years. Such borrowers are provided with the credit limits up to Rs. 10 lakh under the said Scheme for a period of three years. The salient features of the Scheme are given below:

Sr. Field Content No 1 Eligible All existing customers having a satisfactory Segments dealing with the Bank for the last 3 years, in the categories viz.

Small business units Retail traders Artisans

Village industries Small-scale industrial units and tiny units Professionals and self employed persons, etc.

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Facility Purpose Loan Amount Tenor / Validity

Only working capital in the form of Overdraft/ Open Cash Credit is permitted To meet the credit requirements of the categories mentioned above. Maximum of Rs. 10 lakhs per borrower.

Valid for a period of 3 years Enhancement can be effected subject to the review within the prescribed ceiling of Rs. 10 lakhs.

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Pricing Security

Interest Rate linked to Bank Base Rate. Primary Security: Hypothecation of stock in trade, receivables, machinery, office equipment etc., as specified for existing limits. Collateral: Existing Collateral would continue. 25%

Margin

Property Power The Product aims to cater to the needs of MSME segment and other small corporate customer by way of providing loan against their existing commercial and residential properties. The end use of the loan would be for various business related purposes or to take care of any financial requirements viz., retiring of high cost debt, balance transfer/ takeover or any other business exigencies. Sr. No. Field Content 1 Eligible Segments All proprietorship, partnership, public and private limited companies engaged in the business for the last 3 years. 2 Facility

Term Loan/ Overdraft limit to fund all kinds of business needs (excluding for speculative purposes)

Loan Amount

Minimum: Rs. 5 lakh Maximum: Rs. 500 lakh Term Loan: Max 7 years OD: Max 12 months

Tenor

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Pricing Security

Linked to Bank Base Rate and Rating EMT or Registered Mortgage of Residential / Commercial property Personal guarantee of the borrower As per Bank's applicable rates

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Guarantee Processing Charges Home | Top

SME Smart Line of Credit Availability of timely and adequate credit has always been a point of concern for the MSME Sector. MSMEs stand to lose out on any emerging business opportunities because of want of access to credit at the proper time. Keeping that in view, Bank has introduced this Product where financial assistance is offered to the MSMEs by way of pre-approved composite loan.

Sr. No. 1

Field Eligible Segments

Content All MSME clients as defined by MSMED Act, 2006 Composite loan with the following components

Facility

Term Loan Working Capital (Fund Based and Non-fund Based) Maximum 500 lakh for corporate borrowers Maximum 250 lakh non-corporate borrowers Term Loan: For capital expenditure, modernization, expansion, retiring of high-cost debt Working Capital: To meet working capital requirement Term Loan: Max 5 years

Loan Amount

Purpose of Advance

Tenor

CC: Max 12 months

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Pricing Security Guarantee Margin Processing Charges

Linked to Bank base rate Both Primary and Collateral Security Personal Guarantee of the borrower/promoters/parteners to be obtained. Depending upon the nature of the facilities As per Bank's applicable rates