S.No.

Parameter

Scheme Guidelines

1.

Eligibility

• All existing fund based working capital facilities availed from bank as Cash Credit against hypothecation of stock and book debts.

• The borrower should have requisite registration under GST Act

• The rating of the account should be in investment grade.

• Declaration by entrepreneur exhibiting the details of Input Credit pending for last three months under GST duly certified by Chartered Accountant to be obtained.

• The scheme also covers business of bullion traders and export credit subject to compliance of regulatory guidelines of RBI.

2.

Nature of facility

Working Capital on Adhoc basis (Fund Based) to be given as Short Term loan

3.

Assessment /Quantum of facility

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

4.

Rate of Interest

1% over the ROI approved for the working capital facility of the borrower

5.

Repayment

• The loan is to be repaid either in one bullet payment or maximum 6 equal monthly installments.
• Interest is to be serviced as and when due.
• Repayment should be within 6 months or date of receipt of input credit in case of exporters, whichever is earlier.
• Input claim of exporters have to be escrowed to our Bank Account.