Looking for an MSME loan from South Indian Bank to meet your working capital needs?
Get all the information you need on the SIB MSME Star Loan from South Indian Bank below.
South Indian Bank MSME Star Loan
The MSME loan helps businesses finance their everyday operations such as for investment in current assets, purchase of raw materials and making salary payments. It can also be availed by businesses for business expansion and long-term asset acquisition purposes.
Features of the South Indian Bank MSME Star Loan
Why this Loan?
- The South Indian Bank MSME Star Loan can be availed for all projects and activities related to running the business on a day-to-day basis or for business expansion needs
- The loan is extended in funded as well as non-funded forms such as Cash Credit, Term Loan, Letter of Credit and Bank Guarantee based on the borrower requirements
Loan Amount
- The minimum loan amount sanctioned under this loan scheme is Rs. 10 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 Working capital loan must be repaid within 12 months. And like other working capital loans, this loan is also renewable on an annual basis
- As of now, the repayment period for the term loan (if this loan is availed as a term loan) is not mentioned on the bank’s website. Please get in touch with a bank representative for details
Security Needed
- Working Capital: The bank asks for hypothecation of stocks and book debts as primary security
- Term Loan: The bank asks for hypothecation of fixed assets acquired out of the loan as primary security
- Letter of Credit (LC)/Bank Guarantee (BG): The bank asks for hypothecation of goods purchased under the LC, BG, etc. as primary security
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 anywhere from 0.25% up to 0.50% 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