India, 25 April 2024: Micro, Small and Medium Enterprises (MSMEs) are the backbone of the Indian economy, contributing significantly to employment generation and economic growth. However, these businesses often face challenges in securing accessible and affordable financing solutions to meet their working capital needs. This can hinder their growth potential and limit their ability to compete effectively. Recognizing this critical need, Bank of Maharashtra has introduced the Mahabank GST Credit Scheme, a comprehensive financial program designed to empower MSMEs.
Addressing the Working Capital Gap
The Mahabank GST Credit Scheme is not just a financial product; it’s a strategic empowerment tool for MSMEs across trading, manufacturing, and service sectors. It directly targets the essence of what keeps a business running – its working capital. With loans ranging from Rs. 10 lakh to Rs. 25 crore, the scheme caters to the diverse needs of the MSME sector, providing them with the financial backbone to thrive even amidst challenges.
A Tailor-Made Financial Solution
The scheme offers a unique blend of features designed to ease the financial journey of MSMEs, including:
- Accessible Loan Margins: A flexible margin requirement of 25% for paid stock and receivables, makes financial aid more accessible.
- Competitive Interest Rates: The interest rates are linked to the RLLR, with potential rate reductions when collateral is provided.
- Simplified Security Procedures: Loans up to Rs. 5 crore qualify for Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) cover, minimizing the need for third-party guarantees or additional collateral. Moreover, the scheme simplifies the security process by primarily relying on the hypothecation of inventory and receivables, eliminating the need for complex procedures.
- Reduced Processing Fees: Processing charges are minimized, with concessions based on the CMR (CIBIL MSME Rank) category. This encourages new entrants (CMR 1 & 2) with a complete waiver and provides a 50% concession for CMR 3 & 4.
Eligibility for the Scheme
The Mahabank GST Credit Scheme is open to MSME units engaged in trading, services, or manufacturing sectors. To be eligible, businesses must meet the following criteria:
- Be operational for at least one year.
- Possess a valid GST registration under the GST Act (provisional or final).
- Submit GST returns (GSTR-1 for regular or GSTR-4 for composition) for a minimum of the last three months.
- Maintain a sole banking relationship with the bank. This fosters a strong and focused financial partnership between the bank and the MSME.
The Mahabank GST Credit Scheme signifies Bank of Maharashtra’s commitment to empowering MSMEs. By providing tailored financing solutions with accessible terms and conditions, the scheme equips businesses with the resources they need to overcome working capital challenges and achieve their full potential.
To get more information, please visit: www.bankofmaharashtra.in
