A Bouquet of SBI Products for SME - imtma.in Council/RC South Jan 2018/SME Product... · SME Loan Products LOAN under PMMY (MUDRA) ... ASSET BACKED LOAN FOR COMMERCIAL REAL ESTATE

A Bouquet of SBI Products for SME

1

Dedicated SME Intensive branches

Relationship Banking

Wide Reach

Aligning MSMEs to

supply chains of corporates

Our initiatives to support you

2

Delivery Channel for MSME Customers Centralized Processing Cells for quick

turn around time in sanction &disbursal of loans.

Relationship Manager (SmallEnterprises) providing personalizedservices to units having creditrequirement from Rs 0.50 crores to Rs.5.00 crores.

Relationship Managers (MediumEnterprises) positioned to providecustomized products and services toMedium Enterprises having creditrequirements above Rs 5.00 cr.

3

Classification of Micro, Small and Medium Enterprises (MSMEs)

4

Manufacturing Sector

Investment in plant and machinery

Micro Enterprises

Does not exceed Rs.25 lakhs

Small Enterprises

> Rs.25 lakhs but does not exceed Rs.5 crores

Medium Enterprises

> Rs.5 crores but does not exceed Rs.10 crores

Classification of Micro, Small and Medium Enterprises (MSMEs) – Contd..

5

Service Sector

Investment in equipment

Micro Enterprises

Does not exceed Rs.10 lakhs

Small Enterprises

> Rs.10 lakhs but does not exceed Rs.2 crores

Medium Enterprises

> Rs.2 crores but does not exceed Rs.5crores

SME Loan Products LOAN under PMMY (MUDRA) & Stand Up India

ASSET BACKED LOAN

ASSET BACKED LOAN FOR COMMERCIAL REAL

ESTATE

SBI OPEN TERM LOAN

SME COLLATERAL FREE LOAN UNDER CGTMSE

SME ASSIST – GST RECEIVABLES

STANDBY LINE OF CREDIT

SIMPLIFIED CASH CREDIT 6

SME Loan Products – Contd..• FINANCING TO AGRO BASED AND FOOD

PROCESSING INDUSTRIES• STREE SHAKTHI SCHEME• SBI SHOPPE

7

CGTMSE (Collateral free loan)Eligibility New and existing Micro and Small enterprises in

manufacturing as well as Services sector [barring retail trading units, educational institutes, SHG]

Loan amount

Max.Rs.2 Crore (Fund+Non fund based ) to a single borrower

Collateral No Collateral Security including Third Party Guarantee.Primary security

Assets created out of Bank Finance and existing assets of the unit.

Assessment WC – Manufacture / services >- 31.25% of Proj. T/O is reckoned as WCG. 25 is loan component and 6.25 is marginTL - 75% of Project Cost

Repayment WC on demand and TL max.7 yrs including moratorium period of 6 months to 1 year.

Guaranteefee

To be borne by borrower.

8

STREE SHAKTI SCHEME• Finance scheme for women

entrepreneurs who own and are engaged in retail trade, business enterprises, professional and self -employed like doctors, beauty parlour operators etc.

• Loans upto Rs. 20 lacs can be availed with working capital and term loan facility

• Special concession in margin by 5%• Interest rate – 4.00% p.a. over MCLR

9

ASSET BACKED LOANELIGIBILITY Existing customers, New, Wholesale and retail traders,

professionals, self employed, small business enterprise,manufacturing, services unit etc.

PURPOSE For build up of current assets and fixed assets needed forbusiness purpose, capacity expansion, modernization, short termworking capital including shoring up of NWC, etc.

LOAN AMOUNT

Rs.0.10 Crs to 15Crs.Upto Rs.10 Cr.: 20% of Projected turnover subject to need basedassessment or 50% of realizable value of property, whichever islower.

REPAYMENT Limits can be sanctioned for period of 12 months to 180 monthswith either Equated Reduction in limit or customized reductionin limit depending upon the cash flow.

SPECIAL FEATURES

•Competitive Pricing at 2.30% p.a. above MCLR•No primary security required.•Free SME Insta Deposit Card and SBI Business Debit Card.•ABL for Commercial Real Estate also available [ShoppingComplex, Malls, Other Commercial projects, etc]

10

Micro Units Development and Refinance Agency (MUDRA)Beneficiary Non-farm enterprises in Manufacturing, Trading

and ServicesMargin Upto Rs. 50,000 NIL

Rs. 50,001 – Rs. 10 lacs 10%Interest Rates

CGFMU covered accounts – MCLR+275 bps 10.75%

PrimarySecurity

Hypothecation of stocks / machinery / movables acquired out of Bank’s finance.

Collateral No collateral security to be obtained for all loans upto Rs. 10 lacs

Repayment for TL

In 3 - 5 years including a moratorium of upto 6 months Depending on the activity / income generation

Applicationform

Simplified application forms as formulated by IBA

Assessment As per scoring model for all loans upto Rs. 10 lacs

11

ASSET BACKED LOAN FOR-COMMERCIAL REAL ESTATE

PURPOSE • Creation/acquisition of real estate such as office buildings, retailspace, residential building, industrial or warehouse space, multiplex,hotels, restaurants, gymnasium, amusement parks, cold storage,education institution etc where the prospect for repayment wouldgenerally be lease or rental payment or sale of asset.

ELIGIBILITY • Existing customers, New units.• Takeover of existing units will also be considered.

PURPOSE Working capital and Fixed assets (including pre-operative expenses).LOAN AMOUNT

• Minimum: Rs 10.00 Lac.• Maximum: Up to Rs 50.00 Crore.• Working Capital-20% of Projected turnover and Term Loan- 75% ofProject cost subject to 60% of realizable value of property, whicheveris lower.

REPAYMENT • Limits can be sanctioned for period of 12 months to 96 months witheither Equated Reduction in limit or customized reduction in limitdepending upon the cash flow.• Adequate moratorium period of 18 Months for better project planning.

SPECIAL FEATURES

•Competitive Pricing of 3.05% above MCLR•No primary security required.•Free SME Insta Deposit Card and SBI Business Debit Card.

12

SBI OPEN TERM LOANNature of Facility

• Pre-approved Term Loan

Target Group

• All units under Manufacturing sector andServices sector [Hospitals, Hotels, EducationInstitutions,etc]

• Transport Operators with minimum 25 vehicles

Purpose

• Any genuine commercial purposes in line with regular business activity of the customer. [Acquisition/ Investment in R&D, Retiring High cost debt of other banks]

Loan Amount

• Manufacturing and Service enterprises maximum upto Rs 2.50 Cr• Maximum Rs 1 Crore, for business development expenditure

Interest 2.95 to 8.00% over MCLR

Validity of Sanction

12 Months from the date of sanction13

SIMPLIFIED CASH CREDIT

• All existing and new customers engaged in manufacturing activities

Purpose: Working Capital limits – Regular limit,

SLC - meet urgent w/c limits ( to be sanctioned along with regular limit)Facility: Cash Credit & SLC (not regular limit)

Eligiblility: The borrower / unit should be in existence / operations atleast for last 3

years (If new connection).CRA: SB-9 and betterECR: BB & better FBWC limits will be assessed on the basis of actual peak inventory plus

receivables levels for the previous 12 monthsSLC – 15% of Cash Credit Limits

• 14

SIMPLIFIED CASH CREDIT CONTD….

• Assessment of the Limit: • The inventory, receivables and bank borrowing arrived on the• basis of above assessment (amount) will be • Reflected/incorporated in the Estimated/project CMA data.• Data in respect of holding level for the last 12 months will be • certified by The statutory auditor of the unit.•• Loan Amount: Minimum: Above Rs. 5.00 crores & maximum Rs.20 crores• In addition, SLC to the extent of Max 15% of CCLimit

• Margin: RM/SIP/FG/RECEIVABLE: Minimum 25%

•

15

SME ASSIST GOODS AND SERVICES TAX (GST)

• Facility : Working Capital Demand loan• Loan amount : Maximum 20% of the existing Fund based

working Cap Limit or 80% of input tax claim due whichever is low (over and above the ABF)

• The Adhoc WCDL (SME Assist) & existing Working Capital limits have to be covered by the advance value of stocks and receivables + OS input tax credit claim.

• CA certificate to obtain certifying the amount of pending input tax for last 3 months

• 3. Eligibility :• i) CRA rating SB-10/CUE-10 and better.• ii) Account should be standard.• iii) Satisfactory conduct of the account

16

SME ASSIST - Contd….

• 4. Interest Rate : 1 Year MCLR + 1.75% • 5. Security : Primary: Hypothecation of stocks and receivables.• Collateral: Nil• 6. Repayment : To be repaid in next 6 months after initial moratorium of 3 months:• a) Initial 3 months moratorium period.• b) The ad-hoc amount shall be repaid either in one bullet payment or in 6 equated

monthly instalments in next 6 months after moratorium period is over.• c) DP to reduce in line with EMI instalments every month after moratorium• period is over.• d) Interest to be serviced every month.• e) Input claims of exporters have to be escrowed to our Bank account.•• 7. Processing Fee : Flat Rs. 2000• 8. Validity of Product : The product is valid till 31.03.2018.

17

STAND UP INDIA (SUI)Target Group SC/ST and Women EntrepreneursPurpose Setting up Greenfield Projects under

Manufacturing, Trading or services sector

Loan quantum > Rs. 10 lacs to Rs.1 croreMargin 25%Interest Rates >Rs.10 to 1 Crs –MCLR+3% (10.95%)

(MCLR for 1 year reset)Repayment for TL Maximum 7 yearsPrimary Security Hypothecation of stocks / machinery

/ movables acquired of Bank financeCollateral Credit Guarantee from National

Credit Guarantee Trust Co (NCGTC)Apply through SUI portal www.standupmitra.in.

18

Electronic Dealer Financing scheme(e-DFS)

• Purpose: To provide finance to authorized Dealers/Stockist/ Distributors recommended by Industry Major

• Eligibility: Dealers of Industry Majors with whom the e-DFS tie-up is entered with

• Amount of facility: Need based (As per tie-up)• Margin: Nil (100% funding)• Security: Primary: 100% hypothecation of stocks

financed and receivables.– Collateral : Minimum 25% or NIL

• Rate of Interest: Lowest Rate of Interest, linked to Base Rate. Present effective rate ranges from 1.00% and 1.60% over MCLR (with & without collateral).

19

Financing of Food Processing and Agro Based Industries

Purpose To finance food processing and agro based industries suchas Dall Mill, Cotton Ginning etc.

Loan Amount

Cash Credit: 20% of sales turnover or as per assessment.Term Loan: Need based on project cost.

Repayment

Cash Credit: Repayable on demand. Term Loan: RepayableEMI or customized repayment in 7 years inclusive ofmoratorium.

Margin Cash Credit: 25% to 40%Term Loan: 25%

Primary Security

Cash Credit: Hypothecation of stocks, receivables and othercurrent assets.Term Loan: Hypothecation or mortgage of assets created out ofBank Finance.

Collateral Minimum 100% collateral in the form of Mortgage of Land &Building/Liquid Securities/ Any other security acceptable tobank.

Rate of Interest

Competitive Rate of Interest based on score and collateralsecurity. (Ranges between 0.90 – 3.50% above MCLR)

20

LIABILITY PRODUCTS & OTHER INITIATIVES

SME Insta Deposit Card

SME Business Debit Card

Corporate Internet Banking

SME Power Current Accounts

Point of Sale (POS)

21

State Bank SME Insta Deposit CardCard for only cash deposit.No need to go to SBI Cash Counters for cash

deposits.Convenient way of depositing cash in Bank A/cs

through Cash Deposit Machines.Can deposit cash in Current A/cs & CC A/cs .3 such accounts can be linked in a Card of the

same Customer.Safe as no erroneous credits possible in different

accounts.Secured-Personal Identification Number (PIN)

enabled.22

State Bank SME Insta Deposit Card-Advantages

Can also be used for taking Mini Statements/ Balance Enquiry/ PIN Change.You can deposit Maximum of Rs.49,900/- or 200

pieces/ transaction.Can be used in Green Channel Counters alsoFor you- Lesser waiting time/ No Need to wait at

counters in BranchesMore Useful for traders and service providersNeed not maintain cash at your own risk during

night time.All these are coming at absolutely FREE of ChargesNo charges for issuance of State Bank SME Insta

Deposit Card23

•For Business Current account holders i.e. proprietorships, partnerships, public limited companies and private limited companies for cash withdrawal and purchases.• Debit Card will be issued to current accounts in the names of the authorized signatories, with the name of the company embossed on the Debit Card. These cards can also be issued for jointly operated accounts

Advantages of Business Debit Card Cash Deposit facility: The customer can use the BusinessDebit Card to deposit cash in the Cash Deposit Machines. Cost savings: Helps to keep spending within means,without accumulating unnecessary debt, merchant discountsin relevant spendControl: Helps track and monitor business expenses, limitsexposure to loss by theft or robbery.Convenience: Easier than carrying cash, enables automaticbill payment, enables internet, phone and mail ordertransactions.

SME Business Debit Cards

24

Corporate Internet Banking (CINB)

Transaction and viewing rights Safe and secured : VeriSign certified

site 24 * 7 Daily MIS: Invoices, due dates, interest

charged Simplified Application Form Facility for payment of salary, tax,

pre- paid cards top up, bills,remittances to intra and inter bankbeneficiaries etc.