“We have launched an ‘Instant Overdraft’ facility for MSME (Micro, Small, and Medium Enterprises) customers in a completely online and paperless manner. Now, to apply, customers can log in through their Corporate Internet Banking account or the Business Mobile Application for businesses or directly from our bank’s website, where they have the option to avail of the overdraft facility instantly. We have also used Servosys Product Suite for faster roll-out of other Business Lending & Corporate Solutions.”
Overview
Instant Overdraft works completely online in a paperless manner to cater to the Working Capital requirements of MSMEs. The product has become a runaway success for the bank as it provides instant disbursement within a few clicks. The disbursement is instant to all the existing customers of the bank. In the case of new customers, the disbursement is done immediately upon account opening. The features and facilities include – INR 1.5 million for existing customers and INR 1.0 million for new customers; No collateral is required; There are no commitment charges from the bank; The interest is paid only the utilized amount; Foreclosure also attracts no penalty.
Business Loans based on past transaction history is another innovation for the MSME segment, where the bank offers loans to eligible customers on the basis of their past transaction history without the requirement of audited financials. The features & facilities offered under these loan types are – Loans up to INR 10 million based on transaction history (in the nature of overdraft and non-fund based facilities); There is no requirement of audited financials; Some T&C like 3 years vintage required.
Business Loans for New Entities to help customers grow. Even for the newly started business, this Bank can help meet the MSMEs’ day-to-day operating expenses. The business loan products have been designed to finance Manufacturing, Retail, Wholesale, Trading (Import/ Export), and Service industries. The features and facilities offered are – Cash Credit / Overdraft / Export Credit; Term Loans for the purchase of commercial assets and business expansion needs.
Besides, the bank has gone ahead and implemented other business products like GST OD, Salary OD, and Purposed-Based Business Lending in the secure category.
Major Benefits
- The daily maximum OD cases increased by 4 times in less than 1 year
- De-centralised operations made possible for doing fast processing
- "Instant" products became possible using Servosys product suite.
- 100% compliance adhered easily
- 3000 plus branch network with "Anywhere Banking" for ease of operations