Indian Overseas Bank

Indian Overseas bank
COVID 19 – Line of Support for MSME

Scheme
Sr. No. Category Particulars
1. Product Name COVID 19 - Line of Support for MSME (CLSM)
2. Target Group MSMEs (Manufacturing/Services/Trade)
3. Target Individual/Proprietary Concern/Partnership Firm/ Limited
Constituents Liability Partnership/Company.
4. Nature of facility Working Capital Demand Loan (Tenor 18 months)
5. Purpose To meet temporary liquidity mismatch of MSME units
arising out of COVID 19 (to meet the statutory dues,
payment of salaries to staff, electricity bills, rent of office,
delayed retaliation of receivables, etc.)
6. Loan Amount WCDL upto 10% of the specific existing fund based
working capital facility subject to the maximum limit of
Rs.1.00 crores.
Existing customers who have availed special loan products

like IOB SLC for MSME and GST Ease are also eligible for
the facility. However, the total additional exposure including
the present facility should not exceed 25% of the existing
FBWC exposure.
7. Eligibility Existing MSME units having credit limits with satisfactory
credit record of two years.
Stand by Line of Credit for MSME Scheme

Sr. No. Category Particulars
1. Product Name IOB-Standby Line of Credit for MSME
2. Target Group MSMEs (Manufacturing/Services/Trade)
3. Target Individual/Proprietary Concern/Partnership Firm/ Limited
Constituents Liability Partnership/Company.
4. Nature of facility Working Capital Demand Loan
5. Purpose To meet temporary liquidity mismatch of MSME units arising
out of delayed realisation of receivables, receipts of GST
inputs tax credits (including for exports) and other business
requirements.
6. Eligibility Existing units having credit limits upto Rs.5.00 crores with
satisfactory credit record of two years.
7. Loan Amount The maximum loan amount permissible under this scheme is
capped at the lowest of the following:
a) WCDL upto 25% of the specific existing fund based

working capital facility or
b) delayed receivables i.e. book debts which are not

considered for the regular limits enjoyed by the borrowers and
with maximum age of 180 days less applicable margin or
c) Rs.1.25 crores.

IOB SME EASY MSME units including Retail Traders for Working Capital
Requirement Against Land, Buildings. Maximum: Rs. 5.00
Crores
IOB SME INSTA FUND Existing Micro and Small Enterprises for Meeting Working
Capital Requirement to Execute Additional / Bulk Order
Over and Above Regular Orders. Maximum: 50% of Existing
WC.
IOB MICRO ONE Only New Micro Units Seeking Credit Facilities. Only Prime
Security Created Out of This Loan. No Collateral Required.
Maximum: Rs. 50.00 Lacs

IOB SME ADD ON Existing SME Borrowers with Good Track Record.
Maximum: Rs. 25 Lacs.
IOB MSE PLUS Micro and Small Enterprises Engaged in Manufacturing /
Service Activities. For Construction / Purchase of Work
Sheds / Factory Premises, Acquisition of Plant and
Machinery / Equipment, Working Capital Needs. Maximum:
Rs. 1.00 Crore.
IOB SME EQUIP-P All MSME Units, New and Existing Facing Shortfall in
Promoter's Contribution (Margin Money) for Capital
Investments.
Maximum: 10% of Project / Capital Cost or Rs. 50. 00 Lacs.

MSME JEWEL LOAN Individuals Running Small Units Engaged in Manufacturing /
Services / Retail Trade Sectors. For Meeting Short
Requirement. Maximum: Rs. 10.00 Lacs.
SME 300 DAILY Micro and Small Units Engaged in Manufacturing / Services /
Retail Trade Sectors. To Meet All Business Needs Including
WC Requirements and to Take Up Income Generating
Activities. Maximum: Rs. 2.00 Lacs.
IOB's ARTISAN CREDIT All Existing Artisan's Borrowers Enjoying Credit Limit upto
CARD Rs. 2 Lacs. To Provide Adequate and Timely Assistance to
Meet the Investments and Working Capital Requirement.
Maximum: Rs. 2.00 Lacs
IOB CA To Chartered Accountants for Purchase of Car, Construction
of Office Premises, Acquire Ready Built Office Premises,
Cover Cost of Land and Construction etc. Maximum: Rs.
1.25 Crore
IOB ENGINEER To Civil Engineers for Construction of Office Premises, To
Purchase Furniture and Fixtures, Fittings and Office
Equipments Such as Computers, Printers, Plotters, Books &
Other Accessories etc.
IOB SANJEEVNI Qualified / Registered Individual Medical Practitioners
Recognized by Indian Council of Medical Research,
Including Dental Surgeons, Polyclinics etc. Maximum: Rs.
5.00 Crore.
IOB SME CONTRACTOR To Government Registered Contractor for Executing Contract
Works. Maximum: Rs. 5.00 Crores.
IOB SME MAHILA PLUS Qualified Women (Minimum Graduate) Who Desire to Start
a Unit in the Age Group of 21 to 50. Maximum: Composite
Loan upto Rs 2 Crores for a Manufacturing Enterprise and
Composite Loan upto Rs. 1.00 Crore for a Service Enterprise.
WEAVERS MUDRA Existing Handloom Weavers for WC and TL Requirement of
the Weaver. Maximum: Rs. 10.00 Lacs
Working Capital Loans
The manufacturing / Service activity of the unit can smoothly progress while adequate
working capital funds are available. Our Bank provides necessary working capital assistance
to MSME units.
The quantum of working capital funds can be ascertained by looking into the working capital
cycle of the unit. Working Capital Cycle can be explained by way of flow chart as below:
Cash > Raw Material > Work in Process > Finished Goods > Receivables > Cash
It is normally presumed that the working capital cycle will be of three months i.e. the period
taken for conversion of cash into raw material, raw material into finished goods, finished
goods into receivables and receivables into cash. Depending on the nature of activity and
various other factors it may be either more than 3 months or lesser than 3 months.
The working capital limits can be availed by way of cash credit, bills limit, Letter of
Guarantee, Letter of Credit etc.
Security / Third Party Guarantee:
Bank will not insist for collateral security / Third Party Guarantee for total credit limits upto
Rs.10 lakhs for SME borrowers. In respect of credit limits above Rs.10 lakhs and upto
Rs.200 lakhs Collateral Security / Third Party Guarantee may be waived on deserving cases
and those limits will be covered under Credit Guarantee Trust for Micro and Small
Enterprises (CGTMSE).
Interest Rates:
The details of interest rates for various categories of SME advances are available separately.
Term Loan
FINANCIAL ASSISTANCE:
The growth of SME units largely depends on their proper financial management. They should
closely monitor their funds flow and cash flow at every stage to avoid mismatch, which will
dampen their operational activities. Our Bank provides total financial solutions to SME units
by way of various schemes to support the financial needs of SME units.
Term Loan:
Term Loans are extended for the purpose of acquisition of fixed assets. viz., land, building,
plant and machinery for setting up of new industrial units or expansion/modernisation of
existing units. Financing for the purchase of second hand machinery (both indigenous as well
as imported) can also be considered subject to certain conditions.
Margin:
Bank will normally finance upto 75% of the value of fixed assets and the balance amount
should be brought by the applicant as margin. However depending upon the activity and
quantum of advance the bank may either increase the margin or decrease the margin.
Security / Third Party Guarantee:
Bank will not insist for collateral security / Third Party Guarantee for total credit limits upto
Rs.10 lakhs for SME borrowers. In respect of credit limits above Rs.10 lakhs and upto Rs.200
lakhs Collateral Security / Third Party Guarantee may be waived for deserving cases and
those limits will be covered under Credit Guarantee Trust for Micro and Small Enterprises
(CGTMSE).
Repayment:
The repayment of term loan will be fixed based on the cash generation of the unit and
gestation period. Suitable holiday period will be allowed for repayment of the term loan.

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Indian Overseas bank

COVID 19 – Line of Support for MSME

Existing customers who have availed special loan products

Stand by Line of Credit for MSME Scheme

a) WCDL upto 25% of the specific existing fund based

b) delayed receivables i.e. book debts which are not

c) Rs.1.25 crores.

Maximum: Rs. 50.00 Lacs

Maximum: 10% of Project / Capital Cost or Rs. 50. 00 Lacs.

Working Capital Loans

Security / Third Party Guarantee:

Security / Third Party Guarantee:

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