State Bank of India has introduced a first-of-its-kind product ‘SME Assist’ wherein the bank will provide a short term Working Capital Demand Loan (WCDL) to the bank’s MSME customers for 9 months. Under this product, the bank would provide loan to MSMEs on their input credit claims under GST, at a concessional rate of interest. V. Ramling, CGM (SME) of the bank, said the bank has been at the forefront in handholding the SME sector. This product will help them to manage their working capital requirement till the time they get input credit. It also supports the government’s GST initiative, as it will help stabilize the SMEs to run their operations without any hurdle, he added. WCDL will be sanctioned outside Assessed Bank Finance (ABF) at 20% of the existing fund based working capital limit or 80% of the input tax claim due on purchases, whichever is lower. There is a nominal processing fee of Rs.2000. SME borrowers can also enjoy a moratorium period for the first three months.
