Looking for a Small Business Loan based on GST Returns from South Indian Bank?

Get all the information you need on the GST Business Loan for MSMEs from South Indian Bank below.

South Indian Bank SIB GST Business Loan

The South Indian Bank Star MSME GST Plus Scheme helps MSME enterprises finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. The maximum loan amount sanctioned under this loan scheme is Rs. 1 crore.

Features of SIB GST Business Loan

Why this Loan?

  • South Indian Bank SIB GST Business Loan helps MSME enterprises get financial assistance to meet their needs to carry out everyday business operations
  • The quantum of loan depends on the annual turnover as per the GSTR statement of the borrower
  • These loans are perfect for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects

Loan Amount

  • The minimum loan amount sanctioned under this loan scheme is Rs. 5 lakh and the maximum loan amount sanctioned under this loan scheme is Rs. 10 crore

Interest

  • The applicable interest rate on this loan is defined as the sum of two parameters: One-year Marginal Cost of Funds based Lending Rate (MCLR)/Repo Rate and Credit Risk Premium. The Credit Risk Premium depends on the Bureau score/rating of the borrower
  • For the MSME Star Loan, the applicable interest rate can be anywhere from MCLR + 0.50% to MCLR + 2.50%. Currently, the 1-year MCLR of South Indian Bank is 8.20% bringing the values at 8.70% and 10.70% respectively

Repayment

  • The loan must be repaid within 12 months and is renewable on an annual basis

Security Needed

  • The bank asks for hypothecation of stocks and book debts as primary security
  • The bank also asks for collateral security of immovable assets equivalent in value to the loan amount

Borrower’s Contribution to Total Cost (Margin Money)

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

Processing Charges

  • The bank charges 0.40% of the total loan amount as processing charges for this loan

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 Issue 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: 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

  • South Indian Bank Website: www.southindianbank.com
  • Headquarters: Thrissur, Kerala
  • Call Centre Number: +91 487 2420020, +91 487 2420058, +91 487 2420113, +91 487 2436666