SME Smart Line of Credit


Availability of timely and adequate credit has always been a matter of concern for the MSME Sector. MSMEs stand to lose out on emerging business opportunities, due to lack of want of access to credit, when needed. Keeping that in view, IDBI Bank has introduced this Product in which financial assistance pre-approved composite loan is offered to the MSMEs.

The product details are as mentioned below:

Sr. No. Field Content
1 Eligible Segments All MSME clients as defined by MSMED Act, 2006
2 Facility Composite loan with the following components
Term Loan
Working Capital (Fund Based and Non-fund Based)
3 Loan Amount Maximum :  Rs. 500 lakh for corporate borrowers
Maximum : Rs. 250 lakh non-corporate borrowers
4 Purpose of Advance Term Loan: For capital expenditure, modernization, expansion, retiring of high-cost debt
Working Capital: To meet working capital requirement
5 Tenor Term Loan: Max 5 years
Cash Credit: Max 12 months
6 Pricing Linked to Bank Base Rate and Rating
7 Security Primary:  Hypothecation of assets/ Financed stock/Book Debts
Collateral Security: In the form of immovable property such as residential /commercial, or other liquid security
8 Guarantee Personal Guarantee of the borrowers/promoters to be obtained.
9 Margin Depending upon the nature of the facilities
10 Processing Charges Upto 1%