Bank of Maharashtra Strengthens Support for MSMEs with Mahabank GST Credit Scheme

India, 25 April 2024: Micro, Small and Medium Enterprises (MSMEs) are the spine of the Indian economic system, contributing considerably to employment era and financial progress. However, these companies typically face challenges in securing accessible and inexpensive financing options to satisfy their working capital wants. This can hinder their progress potential and restrict their capability to compete successfully. Recognizing this essential want, Bank of Maharashtra has launched the Mahabank GST Credit Scheme, a complete monetary program designed to empower MSMEs.

Addressing the Working Capital Gap

The Mahabank GST Credit Scheme isn’t just a monetary product; it’s a strategic empowerment device for MSMEs throughout buying and selling, manufacturing, and repair sectors. It instantly targets the essence of what retains a enterprise operating – its working capital. With loans starting from Rs. 10 lakh to Rs. 25 crore, the scheme caters to the various wants of the MSME sector, offering them with the monetary spine to thrive even amidst challenges.
A Tailor-Made Financial Solution

The scheme provides a novel mix of options designed to ease the monetary journey of MSMEs, together with:

• Accessible Loan Margins: A versatile margin requirement of 25% for paid inventory and receivables, makes monetary assist extra accessible.
• Competitive Interest Rates: The rates of interest are linked to the RLLR, with potential price reductions when collateral is offered.
• Simplified Security Procedures: Loans as much as Rs. 5 crore qualify for Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) cowl, minimizing the necessity for third-party ensures or further collateral. Moreover, the scheme simplifies the safety course of by primarily counting on the hypothecation of stock and receivables, eliminating the necessity for advanced procedures.
• Reduced Processing Fees: Processing prices are minimized, with concessions based mostly on the CMR (CIBIL MSME Rank) class. This encourages new entrants (CMR 1 & 2) with an entire waiver and gives a 50% concession for CMR 3 & 4.

Eligibility for the Scheme

The Mahabank GST Credit Scheme is open to MSME models engaged in buying and selling, providers, or manufacturing sectors. To be eligible, companies should meet the next standards:

• Be operational for a minimum of one yr.
• Possess a sound GST registration underneath the GST Act (provisional or last).
• Submit GST returns (GSTR-1 for common or GSTR-4 for composition) for a minimal of the final three months.
• Maintain a sole banking relationship with the financial institution. This fosters a robust and targeted monetary partnership between the financial institution and the MSME.

The Mahabank GST Credit Scheme signifies Bank of Maharashtra’s dedication to empowering MSMEs. By offering tailor-made financing options with accessible phrases and circumstances, the scheme equips companies with the sources they should overcome working capital challenges and obtain their full potential.

To get extra info, please go to: www.bankofmaharashtra.in