Customer meet for MSME Segment

Including Product presentation and discussion

In the presence of

Hon’ble Shri Hemant Mamoriya Sir

(DGM and Regional Head – Gwalior Region, Bhopal Zone)
&
Mrs. Vinod Kumar Talreja Sir
(AGM - CSC, Bhopal Zone)
The existing criterion of definition of MSMEs is based on the MSMED Act, 2006.
After the package announced on 13th May, 2020, there were several
representations saying that the announced revision is still not in line with market
and price conditions and hence it should be further revised upwardly. Keeping in
mind these representations, Prime Minister decided to further increase the limit
for medium Units. This has been done in order to be realistic with time and to
establish an objective system of classification and to provide ease of doing
business.
Revised Classification applicable w.e.f 1st July 2020

Composite Criteria: Investment in Plant & Machinery/equipment and Annual Turnover

Classification Micro Small Medium

Manufacturing Investment in Plant and Investment in Plant and Investment in Plant and
Enterprises and Machinery or Equipment: Machinery or Equipment: Machinery or Equipment:
Enterprises rendering Not more than Rs.1 crore Not more than Rs.10 crore Not more than Rs.50 crore
Services and Annual Turnover ; not and Annual Turnover ; not and Annual Turnover ; not
more than Rs. 5 crore more than Rs. 50 crore more than Rs. 250 crore
Loan for Business - IDBI Bank MSME Finance
IDBI Bank not only offers finance to MSMEs but also takes care of their all banking
needs under one roof with full range of banking products and services. The Bank is
in constant endeavor to introduce new products with a view to offer wide array of
solutions to the MSME Entrepreneurs.

DBI Bank MSME Finance Advantage

The details of IDBI Bank MUDRA Loan are as below
Eligible Individuals / MSMEs engaged in non-farm Pricing Linked to Bank’s Base Rate and
Segments entrepreneurial activities (manufacturing, Rating.
trading and service enterprises including
professionals rendering services) across the
country (including rural, semi-urban, urban
and metro centres).
Facility Term Loan Security No Collateral Security
Cash Credit requirement.
No third party guarantee
requirement.
Purpose Cash Credit / Overdraft - To meet Guarantee No third party guarantee
Working Capital requirements. requirement.
Term Loan - To meet CAPEX including CGTMSE cover may opt
purchase of equipment / furniture or any
such business requirements.
Loan Minimum – None. Margin Nil for Loan upto Rs. 50,000.
Amount Maximum – Rs. 10 lakh. 25% for others.
Tenor OD & CC Limit – 12 months, repayable on Processing Nil for loan upto Rs. 5 lakh.
demand. Charges Up to 0.50% for others.
Term Loan- Up to 5 years.
Eligible Entities Individual, Sole Proprietor/ Partnership/ LLP Firms,
Private/Public Limited Companies, engaged in manufacturing
activity including food processing/fabrication/job work etc.
and falling under the definition of MSME.
Establishment  2 years of satisfactory track record
Criteria  3 years of working experience in similar/related line of
business. (2 years for exposure up to ₹ 25 lakh)
 For technically qualified entrepreneurs, the experience
may be relaxed by one year on cases to case basis.
Financial Benchmark  Current Ratio – 1.10
 ICR – 1.50
 TOL/TNW – 3.5 (Max)
 DSCR – 1.25 (Avg.)
Facility  Working Capital (fund based and non-fund based including
Rupee Export Credit and Bills discounting)
 Term Loan for all kinds of business needs (except speculative
purpose).
 LC/BG
Purpose  To meet working capital requirement.
 To meet financing need for development/renovation of works
(Factory) or purchase of equipment.
 Based on business need and merits of the case, purchase of shop/
workshop/ godown may be considered on selective basis.
 Purchase of old / second hand machinery.
Loan Amount Minimum: Above Rs.10 Lakhs Maximum: Rs.500 Lakh
Tenure  Cash Credit/ SOD – On demand (Yearly renewal)
 Term loan – 7/10 years (including moratorium period up to 6 month).
 LC – Upto 90/180 days.
 BG – Upto 60 months (Excluding claim period).
Margin  Working Capital: 25% of stock and book debts
 Term Loan: 25% of cost of the assets. (40% in case of purchase of
second hand / old machinery)
 BG/LC: 10% in the form of FDR
Security For Working Capital
(Primary  Primary : Hypothecation of stocks, receivables and other current assets.
)
For Term Loan
 Primary: Assets created out of bank finance and other unencumbered
Current Assets..
Security Collateral (for both WC and TL)
(Collateral)  For cases up to Rs.10 Lakhs: Nil
 For cases above Rs.10 Lakhs up to Rs.500 Lakhs:
- Equivalent to min. 75% (Realizable Sale Value) in the form of
immovable property, either residential/ commercial/industrial, or
liquid security like Bank’s own FDR, Surrender Value of LIC policy,
NSC, KVP.
Important  Loan for purchase of second hand / old machinery not to exceed 50%
of proposed Term Loan. (No deviation permitted in maximum cap of
50%).
 If the primary security consists of immovable property (i.e. Land and
Building) and RSV of said immovable property is more than 1.33
times of assistance sanctioned, RH / Sr RH may approve waiver of
the collateral security.
Overview
IDBI Loan for Services Sector (ILSS) can be extended to all kind of business enterprises,
self-employed and professionals, engaged in providing or rendering service.
The details of the product :
Eligible All kind of business enterprises, self-employed and Facility Term loan & Overdraft/ Cash
Segments professionals, engaged in providing or rendering service. Credit

OD/CC: To meet Working Capital requirements Tenor Term Loan: Max 7 years
Purpose Term Loan: For Purchase of business premises, equipment, CC/OD: Max 12 months
computers, furnitures, undertaking (Annual renewal)
development/expansion/additions/repairs and renovation of
business premises and infrastructure.

Loan •Minimum: Above Rs. 10 lakh Pricing Linked to banks Repo Linked
Amount •Maximum: Rs. 500 lakh Lending Rate (RLLR) and Rating

 Term Loan: Exclusive Charge on assets created out of bank Guarantee Personal guarantee of the
Security finance. promoter directors, Partners
 Working Capital: Hypothecation of stock, book debts and
assets created out of bank finance.
 Collateral: Mortgage of residential/commercial properties
of appropriate value.

Margin Cash Credit : 25% on stock and Book debts Processing As per Extant applicable
Overdraft : NIL Charges Schedule of Charges.
Term loan : 25 %
 Product Features
Eligible All potential and existing MSME customers of the Bank engaged in the
Entities business for the last 2 years. Udyam Registration Certificate is mandatory.
Facility  Term Loan
 Working Capital (Overdraft facility / Reducing overdraft limit)
 Non-Fund based: (BG & LC)
Purpose Only for specified and bonafide business needs. Purchase of resale / ready
built / completed Industrial / commercial property / Construction of Industrial
Shed /Building/ Godown for the use of business purpose may be. The loan
should not be given for purchase of vacant land on standalone basis or
speculative purposes.
Tenure  Term Loan: Max 10 Years
 Over draft: Max 12 months, to be renewed annually.
 LC – Not to exceed 90 days
 BG – Not to exceed 36 months
 Product Features
Loan Minimum: Above Rs.10 Lakh
Amount Maximum:

Location of Mortgage Property Maximum Loan Amount

Mumbai, Delhi, Chennai & Bengaluru Rs. 1500 Lakh
Metro Rs. 1000 Lakh
Urban Rs. 500 Lakh
Semi Urban Rs. 250 Lakh

Margin NA
Pricing Linked to RLLR
Processing As per extant Schedule of Charges for MSME.
Fee
 Product Features
Eligible  EMT or Registered Mortgage of Residential/ Commercial property.
Security  Industrial property may be accepted, however, permission to mortgage in
Bank’s favour and selling the property to third party, is obtained from
Competent Authority.
 Vacant plot within the Municipality limits having clear demarcation on the
field, with good marketable value where approved layout as per land
revenue record is available, may be accepted.
 Under construction property (residential / commercial) may be accepted as
security. However, only value of land may be considered for assessment of
LTV.
 Third party property is also allowed, subject to obtaining the personal
guarantee of the property owner.
 Product Features
Others  Acceptable property as primary security:
 Agricultural Land/property and industrial vacant plot will not be taken as
security.
 Property, where sanctioned map / plan is not available, will not be taken as
security
 Property within the Municipal Limit where borrower or business
unit/office is situated will be accepted.
 Leasehold property may be accepted only when the property is on long-
term lease and from Government agency. It will be ensured that:
- The lease deed permits mortgage of the property.
- The unexpired period of lease is sufficiently longer than the tenure of the
loan, so as to ensure that required period is left out after the tenure of the
loan to enforce the security, if needed.
- Prior approval/NOC of Government agency, if required, for creation of
mortgage, to be obtained before disbursement.
 Product Features
Eligible All business entities (Except HUF and Proprietorship / Partnership firms in which
Entities HUF is a Proprietor / Partner) engaged in Trading Activity (both retail and wholesale
trade).
Facility  Cash Credit: Up to Rs.500 Lakh.
 Secured Overdraft (SOD): Up to Rs.200 Lakh.
 Term Loan: Up to Rs.500 lakh
 Non-fund based facility: Up to Rs.200 Lakh
Purpose  To meet working capital requirements
 Purchase of equipment/furniture or to meet financing needs for
development/renovation of shop.
 Purchase/construction of shop/godown
Tenure  SOD/Cash Credit – 12 months (subject to LC – Not to exceed 90 days
renewal every year) BG – Not to exceed 60 months
 Term loan - 5/7 years including maximum (84 months for DPG / Capex /
moratorium of 6 months Customs, on case to case basis).
 Bills Discounting –90 days (In case of exports,
upto 180)
 Product Features
Loan Amount Minimum: Above Rs. 10 Lakh Maximum: Rs. 500 lakh

Margin  Overdraft: Nil

 Cash Credit: 25% on stock and Book debts
 Term Loan: 25%
 BG/LC: 10% in FDR
Security  Working capital:
 Primary: Hypothecation of stock in trade and receivables.
 Collateral : For Cash Credit: Immovable property with market value,
equivalent to 100% of the loan amount.
 For Secured Overdraft:
 Primary: Immovable property with market value, equivalent to minimum
133% of the loan amount.
 Collateral: Need not be insisted upon
 Term Loan:
 Primary: Assets created out of bank finance.
 Collateral: At least 50% (market value) of loan value.
 Product Features
Eligible Individuals, Proprietorship firm, Partnerships firm, LLP and Company
Entities (Private/ Public) Limited. (Excluding HUF and Proprietorship/ Partnership
Firms where HUF is Proprietor/ Partner and also Trust, Societies).
Facility Individuals, Proprietorship firm, Partnerships firm, LLP and Company
(Private/ Public) Limited. (Excluding HUF and Proprietorship/ Partnership
Firms where HUF is Proprietor/ Partner and also Trust, Societies).
Purpose Purchase of new equipment, tools and machinery etc. for bonafide business
purpose.
No second hand machinery is allowed in the product.
Tenure Repayment period up to maximum 5 years including maximum 3 months
moratorium (restricted with in residual life of the machinery).
In case of buyers Credit / Suppliers credit the repayment of the Term Loan will
start after the payment of Buyer’s Credit/ Suppliers credit subject to maximum
tenures of 5 years.
 Product Features
Loan Minimum: Above Rs. 10 Lakh Maximum: Rs. 200 lakh
Amount
Margin 25% of the cost of assets (asset value will be including Taxes with GST). Cost
of freight may be included in the cost of asset for the imported machinery. In
deserving cases sanctioning authority may reduce the margin upto 10%.
Security  Primary Security: Hypothecation of asset created out of Bank finance.
 Collateral Security:
 Immovable property with RSV, equivalent to minimum 75% of the loan
amount or liquid security to the extent of 55%.
 Industrial property with collateral coverage of 100%
 NA land may be accepted
 CGTMSE Coverage: CGTMSE cover can be obtained fully or partly with
collateral security and partly with CGTMSE. Annual Guarantee Fee to be
born by borrower.
 Bundelkahand is specially marked and got grant under
Bundelkahand special packages for drought
 Product Features
Eligible Individuals, Proprietorship firm, Partnerships firm, LLP and Company
Entities (Private/ Public) Limited. (Excluding HUF and Proprietorship/ Partnership
Firms where HUF is Proprietor/ Partner and also Trust, Societies).
Facility Term loan and Working capital for running the unit
Purpose Establishment of new storage facility / Warehouse/ Cold storage.
Tenure Repayment period up to maximum 9 years including maximum 2 year
moratorium.
Loan Minimum: 1 Lakh, Maximum : As per requirement upto 100 Cr.
Amount
Margin 25% as per relevant subsidy scheme of GoI/ NABARD, Cost of land would
not be considered as borrower contribution.
Security Term Loan:
Primary : Asset created by bank finance
Collateral : 100% of loan amount
Overview
The Bank extends financial assistance to farmers, partnership firms and limited companies
against pledge of agricultural commodities. Farmers who want to store their produce in
warehouses to avoid distress sale immediately after harvest, Processors/ Traders who want to
procure large quantities of produce during the season and process / sell over a period of time
can benefit from the scheme.

Who is eligible for the Loan?

Individual farmers, Traders, Firms, Companies engaged in agri allied activities, FPC, FPO &
Food and agro processing units.

Eligible Commodity
Paddy, Wheat, Maize, Mustard, Cotton (including bales), Castor, Turmeric etc.

Loan Amount
Farmer: Maximum amount of Rs. 50 lakh
Traders: Maximum amount of Rs. 10 crore
Processor: Maximum amount of Rs. 15 crore

Tenor
Short Term Loan- Maximum of 12 months from the date lodging commodities or shelf life of the
product.
 IDBI Bank Ltd., Chauhan Building New Colony,
Panna Road Chhatarpur (M.P.) 471001

For any Query of requirement please visit bank branch or contact

Mr. Praveen Kumar Tiwari, Mo : 9826913360