Product Name

Digital Shishu Mudra Loan (STP)

Purpose

Need based Term Loan to eligible Shishu MUDRA customers for meeting working capital requirements.

Quantum (Maximum)

Rs. 50,000/-

Margin

Nil

Primary Security

Hypothecation of stocks, book debts & other assets - present and future created / purchased out of bank finance

Collateral Security

Nil

Guarantee

Nil

Interest Rate

EBLR + 1.25% at present. Penal interest as applicable.

Repayment

To be repaid within maximum period of 36 months in Equated monthly instalments. Moratorium is Nil. Applicant is allowed to select the repayment tenure with minimum of 12 months & maximum of 36 months at the time of applying the loan through the platform.

Processing Charges

Nil

Documentation charges &

Convenience fee

Rs. 950 + GST & actual stamp duty (Auto-recovered at the time of disbursement)

Eligibility Criteria

All Individual Micro enterprises engaged in manufacturing, trading and service sector.

Applicant should not be defaulter in any Bank/Financial institution.

Documentation

Customer will be prompt for execution of documents Digitally through Aadhaar based OTP system on NeSL platform.

Renewal of Limit

Renewal to be done annually as per extant guidelines.

Other Features

Customer friendly, onboarding through Banks website, Net Banking, and Mobile App.

No Physical Document submission.

Branch visit is not mandatory.

Reduced TAT (sanction within 5-7 minutes)

Use of geotagging tools to verify business unit.

Fully automated and Digitized sanction, loan documentation and disbursal of loans to micro entrepreneurs within minutes.

Classification of account as NPA

The extant prudential norms on income recognition, asset classification and provisioning will apply for loans granted under Digital Shishu Mudra STP scheme.

Charging of interest is to be done uniformly as is applicable to general MSME advances.