IOB Mudra Loan

As an entrepreneur you know the importance of funds at any point of the business life. Sometimes the need for a loan amount may be unexpected and required on an immediate basis. These can be stressful times and Indian Overseas Bank loan may be the perfect solution at your time of financial crisis. The flexible features and high loan amounts are what makes these loans so popular. The bank offers loans for Micro Small & Medium Enterprises (MSME).

Why choose Indian Overseas bank mudra loan?

Hassle Free Process: IOB is known for the transparency of its processes as well as quick processing and disbursement. Further, the friendly and helpful customer care service provided by the bank makes sure that you get your funds without any trouble, making IOB an easy choice over other banks.

High Loan Amounts Offered: Depending on the kind of business that you have, IOB offers some of the highest amounts as loan.

Features of Indian Overseas bank mudra loan:

Enterprises are broadly categorized into two by the bank:

1. Enterprises which are engaged in production of goods (This can involve goods for any industry.)
2. Enterprises which provide services.

• As a small business you may not have collateral that many banks require of you. Indian Overseas bank however, does not need enterprisers to provide collateral security for micro and small sector up to the loan amount of Rs.10 lakhs.

  The classification of Micro Small & Medium Enterprises depends on the original investment in machinery and plant. This is in respect to the original investment in equipment with regard to services units and manufacture/production units.

  Classification Of Micro Small & Medium Enterprises Sectors
  Sector	Manufacture / Service	Investment In
  		P & M / Equipment
  SMALL	Service	Rs.10 lacs to Rs.200 lacs
  	Manufacture	Rs.25 lacs to Rs.500 lacs
  MEDIUM	Service	Rs.200 lacs to Rs.500 lacs
  	Manufacture	Rs.500 lacs to Rs.1000 lacs
  MICRO LEVEL-I	Manufacture	Up to Rs.5 lacs
  	Service	Up to Rs.2 lacs
  MICRO LEVEL-II	Service	Rs.2 lacs to Rs.10 lacs
  	Manufacture	Rs.5 lacs to Rs.25 lacs

  Following are the application forms needed for Micro Small & Medium Enterprises Sector loans:

  • Credit facilities over Rs. 200 lacs: SME 8
  • Credit facilities over Rs. 50 lacs and up to Rs. 200 lacs: SME 7
  • Credit facilities up to Rs.10 lacs: SME 5
  • Credit facilities over Rs.10 lacs and up to Rs. 50 lacs: SME 6

  Indian Overseas Bank is a member of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

• Depending on the financial position of the SME units and a good track record, the bank could increase the limit of dispensation of third party guarantee/ collateral requirement for loans up to Rs.100 lacs. This is however, assuming that the same is covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• SME Loans which are given out without third party guarantee or collateral security is eligible for cover under CGTMSE scheme.

• Indian Overseas Bank is approving loans under CGTMSE scheme

  Here are some of the features of CGTMSE scheme:

  1. Working Capital/ Term Loan or both may be considered under the scheme
  2. Maximum credit for the CGTMSE is Rs.100 lacs
  3. Services and Manufacturing Sectors are eligible for the scheme.
  4. Maximum amount of guarantee cover available is Rs.62.50 lacs.
  5. Maximum of 75% of advance is available as guarantee cover.
• In order to cover loans under CGTMSE scheme, the customer will need to pay 1% of loan as one time guarantee fee for loans which are up to Rs.5 lacs. For loans which are above Rs. 5 lacs, 1.5% will need to be paid.
• Annual Service Fee for loans up to Rs.5 lacs is 0.50% and for loans above Rs.5 lacs is 0.75%.

Indian Overseas bank mudra loan FAQs

1. What does the classification Micro Small & Medium Enterprises depend on?

   The classification of Micro, Small & Medium Enterprises depends on the original investment in machinery and plant. This is in respect to the original investment in equipment with regard to Services units and manufacture/production units.

   Classification Of Micro Small & Medium Enterprises Sectors
   Sector	Manufacture / Service	Investment In
   		P & M / Equipments
   SMALL	Service	Rs.10 lacs to Rs.200 lacs
   	Manufacture.	Rs.25 lacs to Rs.500 lacs
   MEDIUM	Service	Rs.200 lacs to Rs.500 lacs
   	Manufacture.	Rs.500 lacs to Rs1000 lacs
   MICRO LEVEL-I	Manufacture	Upto Rs.5 lacs
   	Service	Upto Rs.2 lacs
   MICRO LEVEL-II	Service	Rs.2 lacs to Rs.10 lacs
   	Manufacture	Rs.5 lacs to Rs.25 lacs

2. I have a small business. Will I need collateral for a loan from IOB?

   Indian Overseas bank does not need enterprisers to provide collateral Security for micro and small sector up to the loan amount of Rs.10 lakhs.

3. What are the features of CGTMSE scheme?

   Here are some of the features of CGTMSE scheme:

   • Working Capital/ Term Loan or both may be considered under the scheme
   • Maximum credit for the CGTMSE is Rs.100 lacs
   • Services and Manufacturing Sectors are eligible for the scheme.
   • Maximum amount of guarantee cover available is Rs.62.50 lacs.
   • Maximum of 75% of advance is available as guarantee cover.
4. Which are the application forms that I will require for a loan from IOB?

   Following are the application forms needed for Micro Small & Medium Enterprises Sector loans:

   • Credit facilities over Rs. 200 lacs: SME 8
   • Credit facilities over Rs. 50 lacs and up to Rs. 200 lacs: SME 7
   • Credit facilities up to Rs.10 lacs: SME 5
   • Credit facilities over Rs.10 lacs and up to Rs. 50 lacs: SME 6