Looking for a Cash Credit Loan from Bank of Maharashtra?

Get all the information you need on Bank of Maharashtra’s Maha MSME Cash Credit Loan below

Bank of Maharashtra Maha MSME Cash Credit Scheme

This loan helps businesses in the Micro, Small and Medium Enterprises sector meet their working capital requirements. This is a short-term loan and the loan amount is decided by the bank on a case-to-case basis.

Features of Maha MSME Cash Credit Loan Scheme

Why this Loan?

  • The Maha MSME Cash Credit Loan is meant for all types of businesses in the MSME sector who need financial assistance to meet their Working Capital needs
  • Short-term loans (Cash Credit) can be availed under this scheme
  • The bank offers concession in interest rate if the borrower secures the loan with a collateral

Loan Amount

  • The maximum loan amount under this scheme is decided by the bank on a case-to-case basis

Interest

  • The interest rate for Bank of Maharashtra Loans is defined as the sum of three factors, namely: One-year Marginal Cost of Funds-based Lending Rate (MCLR), Business Strategy Spread (BSS) and Strategic Premium
  • Loans up to Rs. 25 lakh: MCLR + BSS + Strategic Premium of 1.75%. As of now, the one-year MCLR is 7.50% bringing the effective interest rate to 9.25%
  • Loans Above Rs. 25 lakh up to Rs. 5 crore: MCLR + BSS + Strategic Premium ranging from 2.00% to 5.00% based on the Internal Credit Risk Rating
  • Loans Above Rs. 5 crore: MCLR + BSS + Strategic Premium ranging from 2.00% to 5.00% based on the External Rating and Internal Credit Risk Rating

Note: As of now the one-year Marginal Cost of Funds-based Lending Rate (MCLR) is 7.50% and the Business Strategy Spread (BSS) is 0.25%. The Strategic Premium is different for each loan and depends on the loan amount and/or the Internal Credit Risk Rating and/or External Rating. Please check the Bank of Maharashtra website for the latest interest rates applicable to MSME loans.

Interest Concession

Bank of Maharashtra offers concession on the interest rate applicable to select MSME loans as an incentive for collateral securities.

  • Collateral Equivalent to 50% to 75% of Loan Amount: The reduction in rate of interest offered by the bank is 0.25%
  • Collateral Equivalent to 75% to 100% of Loan Amount: The reduction in rate of interest offered by the bank is 0.50%
  • Collateral Equivalent to more than 100% of Loan Amount: The reduction in rate of interest offered by the bank is 0.75%

Repayment & Moratorium

  • The repayment and moratorium period of this loan is not mentioned on the bank’s website as of now. Please ask a bank’s representative at your nearest bank branch for details

Security Needed

  • Current assets such as Inventory and Receivables up to 180 days is considered as primary security for this loan

Eligibility

  • This is a short-term loan for businesses in the MSME category. As of now, the exact eligibility criteria are not mentioned on the bank’s website. Please check with the bank for details

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges minimum 25% of the total loan amount as margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing and Other Charges

  • This information is not available on the bank’s website. Please check with the bank for these details when you apply

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Reference Facts

  • Bank of Maharashtra Website: www.bankofmaharashtra.in and www.mahaconnect.in (net banking)
  • Headquarters: Pune, Maharashtra
  • Call Centre Toll-Free Number: 1800 233 4526