SBI to provide loans to MSMEs based on GST-related input credit claims
The loan amount given by SBI to MSMEs will be either 20% of existing fund-based working capital limit or 80% of input tax claim due, whichever is lower
Mumbai: State Bank of India (SBI) Thursday launched a product to provide working capital loans to micro, small and medium enterprises (MSMEs) based on their input credit claims related to goods and service tax (GST).
The loan, to be given for nine months, will be given outside the sanctioned bank finance. The loan amount will be either 20% of existing fund-based working capital limit or 80% of input tax claim due, whichever is lower.
MSMEs will have to submit a certificate from their chartered accountant confirming the input credit claims to avail of these loans. The facility is available till end of March 2018.
SBI will give moratorium on repayment for the first three months.
Accordingly, repayments can be done either in one bullet payment or in six monthly instalments after the moratorium period is over.
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