GIST OF NEW PRODUCT: “SME ASSIST”


SCHEME FOR FINANCING INPUT TAX CREDIT CLAIMS UNDER GST

S. No Parameter Description

1.

Facility

Working Capital Demand Loan (WCDL) for a period of 9 months

2.

Loan Amount

80% of Input tax claim due on purchases
or
Maximum 20% of the existing fund based working capital limit
whichever is lower.
The above limit is over and above the Assessed Bank Finance.

3.

Eligibility

All existing satisfactorily conducted Standard accounts

4.

Interest Rate

Concessionary interest rates linked to MCLR

5.

Security

Primary: Hypothecation of stocks and receivables.

Collateral: Nil

6.

Repayment

The ad-hoc limit 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) Drawing power to reduce in line with equated monthly 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.

Miscellaneous

Available in all SME Intensive Branches of SBI

8.

Validity of Product

The product is valid till 31.03.2018

Documents required to be submitted for availing loan under “SME Assist”

  • GST Registration Certificate

  • Request Letter from the customer for availing loan for pending input tax credit under GST along with copies of invoices raised under GST.

  • Chartered Accountant’s Certificate certifying the amount of pending input tax credit under GST for the last 3 months.