SBI for SME provides two add-on loan schemes to their existing customers form SME Sector - SME Credit Plus and Standby Line of Credit for Working Capital. Credit Plus will be helpful to overcome temporary financial crisis by providing clean cash credit with the cap of Rs. 25 lakhs facility with no extra expenditure. The other Standby Line of Credit facilitate higher limit upto 5 crore with a small hike in interest rate.
1. SBI SME Credit Plus
For existing and new borrowers this scheme provides a clean cash credit facility to meet contingencies, sudden and unforeseen expenditures like repairs, meeting bulk orders, tax payments, mismatch in cash flows etc.
Under the scheme 20% of aggregate WC or max Rs.25 lakhs fund based limit can be availed. Margins are not required and interest rate will be same as applicable to cash credit limit.
The facility is repayable in 2 months and can be availed for 12 times a year
2. SBI Standby Line of Credit for Working Capital
For existing units including export units, an additional Working Capital (Fund based & non Fund based) limit by way of cash credit, packing credit and bills discounting against stock, receivables to meet contingencies like bunching of orders, delay in shipment, sudden increase in raw material prices, mismatch in cash flows.
Under this 15% of aggregate Working Capital or max Rs.5 crore can be availed. Margins as applicable to original limit. The facility is repayable in 2 months and can be availed any number of times in a calendar year. This product is available only for the existing units including exporter.
2.1 Target Group
Existing units in manufacturing sector and exporting units.
2.2 Purpose of SBI Standby Line of Credit for Working Capital
- To meet genuine contingency needs arising out of bunching of orders
- Delay in shipment / realization of receivables
- Sudden increase in raw material costs, mis-match in cash flows
- Best option for exporters to avail additional Working Capital funds at short notice in times of urgent needs.
Working capital limit by way of cash credit, EPC, bills discounting, against stocks, receivables, etc., as required.
2.4 Quantum of Finance
- Fund based limits and Non-fund based limits
- 15% of working capital facilities subject to a maximum of Rs.5 crs.
- The facility may be made available as fund based and/or non fund based limits subject to the overall exposure being within the SLC (WC).
2.5 Margin for SBI Standby Line of Credit for Working Capital
As per the terms of the original limits
2.6 Interest Rate of SBI Standby Line of Credit for Working Capital
One per cent higher than that applicable to the Cash Credit limit.
2.7 Security for SBI Standby Line of Credit for Working Capital
- Primary: Stocks/ book debts.
- Collateral: charge over existing available collateral security.
2.8 Processing fees for SBI Standby Line of Credit for Working Capital
2.9 Repayment Period of SBI Standby Line of Credit for Working Capital
Generally, within 2 months at any one instance and can be availed any number of times in a calendar year.
Standby Line of Credit.
2.10 Processing fee
No processing fee is applicable under this product.