SBI’S SME ASSIST TO PROVIDE LOANS TO MSMEs

Mumbai, Oct. 12: The State Bank of India on Thursday said it has launched a new product to provide a short-term working capital demand loan to its MSME clients.

The new initiative, called SME Assist, would offer loans to MSME customers on the basis of their input credit claims under GST.

The loans will be offered at a concessional rate of interest, the bank said in a statement.

“This product will help them to manage their working capital requirement till the time they get input credit. It will also help stabilise the SMEs to run their operations without any hurdle,” the bank’s chief general manager (SME), V. Ramling, said in a statement.

The loan will be sanctioned outside Assessed Bank Finance at 20 per cent of the existing fundbased working capital limit or 80 per cent of input tax claim due on purchases, whichever is lower. The loan processing fee under the scheme is `2,000. The companies applying for a loan have to provide a certificate from their CAs confirming the input credit claims.