Star MSME GST Plus

Target Group

a) All units engaged in trading/manufacturing activity classified under MSME (as per regulatory definition), will be eligible under the scheme

b) Units should have valid GSTIN

c) The rating of the account should be of minimum investment grade and complying entry level norms

Purpose

To meet the need based WC requirements of trading /services and manufacturing business.

Facility

Working capital (Fund Based / Non Fund Based)

Quantum

Minimum Rs.10 lacs, Maximum Rs.500 lacs.

In case of Finance against both Stocks & Book Debts, Drawing Power allowed against Book Debts should not be more than 40% of the total limit In case of Finance against only Book Debts, the maximum quantum of loan be restricted to Rs 200.00 lakhs

Assessment of loan

a) Assessment is done strictly as per turnover specified in GSTR – 1 and/or GSTR - 4 returns filed by the borrower

b) Minimum GSTR – 1 return for minimum three consecutive months is required And/or

c) GSTR – 4 return for the preceding quarter is required

d) Based on the turnover as per GSTR – 1 ( average of three months)/GSTR – 4, annual projected turnover may be assessed upon

e) The quantum of working capital limit should not exceed 25% of annual turnover assessed (in case of Micro & Small enterprises) and 20% (in case of medium enterprises)

Margin

25% Stock, 40% Book Debt.

Rate of Interest

0.50% concession in applicable ROI as per Credit Rating

Security

Primary :

Hypothecation of stocks and Book debts

Collateral :

Minimum 65% CCR

Processing & other charges

As Applicable