A Bouquet of SBI Products for SME 1 Our initiatives to support you - PowerPoint PPT Presentation

A Bouquet of SBI Products for SME 1

Our initiatives to support you Dedicated SME Intensive branches Aligning Relationship MSMEs to supply chains Banking of corporates Wide Reach 2

Delivery Channel for MSME Customers  Centralized Processing Cells for quick turn around time in sanction & disbursal of loans.  Relationship Manager (Small Enterprises) providing personalized services to units having credit requirement from Rs 0.50 crores to Rs. 5.00 crores.  Relationship Managers (Medium Enterprises) positioned to provide customized products and services to Medium Enterprises having credit requirements above Rs 5.00 cr. 3

Classification of Micro, Small and Medium Enterprises (MSMEs) Manufacturing Investment in plant and Sector machinery Micro Does not exceed Rs.25 lakhs Enterprises Small > Rs.25 lakhs but does not Enterprises exceed Rs.5 crores Medium > Rs.5 crores but does not Enterprises exceed Rs.10 crores 4

Classification of Micro, Small and Medium Enterprises (MSMEs) – Contd.. Service Investment in equipment Sector Micro Does not exceed Rs.10 lakhs Enterprises Small > Rs.10 lakhs but does not Enterprises exceed Rs.2 crores Medium > Rs.2 crores but does not Enterprises exceed Rs.5crores 5

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) New and existing Micro and Small enterprises in Eligibility manufacturing as well as Services sector [barring retail trading units, educational institutes, SHG] Loan Max.Rs.2 Crore (Fund+Non fund based ) to a single amount borrower No Collateral Security including Third Party Guarantee. Collateral Assets created out of Bank Finance and existing assets Primary security of the unit. WC – Manufacture / services >- 31.25% of Proj. T/O is Assessment reckoned as WCG. 25 is loan component and 6.25 is margin TL - 75% of Project Cost Repayment WC on demand and TL max.7 yrs including moratorium period of 6 months to 1 year. Guarantee To be borne by borrower. fee 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 LOAN ELIGIBILITY 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 for business purpose, capacity expansion, modernization, short term working capital including shoring up of NWC, etc. LOAN Rs.0.10 Crs to 15Crs. AMOUNT Upto Rs.10 Cr.: 20% of Projected turnover subject to need based assessment or 50% of realizable value of property, whichever is lower. REPAYMENT Limits can be sanctioned for period of 12 months to 180 months with either Equated Reduction in limit or customized reduction in limit depending upon the cash flow. • Competitive Pricing at 2.30% p.a. above MCLR SPECIAL FEATURES • No primary security required. • Free SME Insta Deposit Card and SBI Business Debit Card. • ABL for Commercial Real Estate also available [Shopping Complex, Malls, Other Commercial projects, etc] 10

M icro U nits D evelopment and R efinance A gency (MUDRA) Beneficiary Non-farm enterprises in Manufacturing, Trading and Services Margin Upto Rs. 50,000 NIL Rs. 50,001 – Rs. 10 lacs 10% CGFMU covered accounts – MCLR+275 bps 10.75% Interest Rates Primary Hypothecation of stocks / machinery / movables Security acquired out of Bank’s finance. Collateral No collateral security to be obtained for all loans upto Rs. 10 lacs In 3 - 5 years including a moratorium of upto 6 Repayment for TL months Depending on the activity / income generation Application Simplified application forms as formulated by IBA form 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, retail space, residential building, industrial or warehouse space, multiplex, hotels, restaurants, gymnasium, amusement parks, cold storage, education institution etc where the prospect for repayment would generally 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 • Minimum: Rs 10.00 Lac. AMOUNT • Maximum: Up to Rs 50.00 Crore. • Working Capital-20% of Projected turnover and Term Loan- 75% of Project cost subject to 60% of realizable value of property, whichever is lower. REPAYMENT • Limits can be sanctioned for period of 12 months to 96 months with either Equated Reduction in limit or customized reduction in limit depending upon the cash flow. • Adequate moratorium period of 18 Months for better project planning. SPECIAL • Competitive Pricing of 3.05% above MCLR FEATURES • No primary security required. • Free SME Insta Deposit Card and SBI Business Debit Card. 12

SBI OPEN TERM LOAN • Pre-approved Term Loan Nature of Facility All units under Manufacturing sector and • Services sector [Hospitals, Hotels, Education Target Institutions,etc] Group • Transport Operators with minimum 25 vehicles • Any genuine commercial purposes in line with regular business activity of the customer. Purpose [Acquisition/ Investment in R&D, Retiring High cost debt of other banks] • Manufacturing and Service enterprises maximum upto Rs 2.50 Cr Loan • Maximum Rs 1 Crore, for business development Amount expenditure 2.95 to 8.00% over MCLR Interest 12 Months from the date of sanction Validity of Sanction 13

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 better ECR: BB & better FBWC limits will be assessed on the basis of actual peak inventory plus receivables levels for the previous 12 months SLC – 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 Entrepreneurs Purpose Setting up Greenfield Projects under Manufacturing, Trading or services sector Loan quantum > Rs. 10 lacs to Rs.1 crore Margin 25% Interest Rates >Rs.10 to 1 Crs –MCLR+3% (10.95%) (MCLR for 1 year reset) Repayment for TL Maximum 7 years Primary Security Hypothecation of stocks / machinery / movables acquired of Bank finance Collateral Credit Guarantee from National Credit Guarantee Trust Co (NCGTC) Apply through SUI portal www.standupmitra.in . 18