Mahabank GST Credit Scheme
The Mahabank GST Credit Scheme is a specialized working capital / credit facility by Bank of Maharashtra aimed at MSME / business units that are compliant with GST. Its objective is to ease cash flow pressures by advancing funds against paid stock and receivables, backed by GST registration and returns. The scheme provides both fund-based and non-fund based support under “sole banking” (i.e. through the single banking relationship). It is intended for MSME units in trading, manufacturing or service sectors who are GST-registered and have business vintage.
Key Features
- Working capital: The scheme supports day-to-day business operations by giving credit lines (funded) or guarantees / letters of credit (non-funded).
- Quantum of Finance : The minimum finance is above ₹10 lakh; the maximum is up to ₹25 crore, depending on business needs and bank assessment.
- Margin 25 %: You must provide 25 % of paid stock + receivables as margin before the bank advances funds
- Interest Rate / Pricing : The rate is linked to Retail Lending Linked Rate (RLLR); if you also provide additional collateral, the bank may offer a lower rate / incentive.
- Security / Guarantees: The primary security is hypothecation of stock and receivables. If the advance qualifies under CGTMSE, you don’t need to provide third-party guarantee or extra collateral.
- Processing / Charges & Concessions: Processing fees follow the bank's guidelines. For takeover / new borrowers, there may be concessions: e.g. for certain credit rating classes, reduced processing charges.
- Sole Banking: You must maintain your working capital / credit relationship fully with Bank of Maharashtra for this scheme to apply.
Financial Assistance
Eligibility for the Scheme
Who can apply:
- MSME / business units in trading, manufacturing, or service sectors.
- Must have GST registration (either provisional or final).
- Must have filed valid GST returns: at least latest 3 months for GSTR-1 (if regular) or GSTR-4 for composition.
- Business vintage of at least 1 year (i.e. operating for at least one year).
- Must adopt a sole banking relationship for funded / working capital credit.
Who cannot apply:
- If the borrower refuses to take the full credit / working capital relationship with Bank of Maharashtra (i.e., dual banking).
- Loan requirement is beyond ₹25 crore
- Documents Required for the Scheme
- Identity proof – PAN, Aadhaar, Passport, etc.
- Address proof – utility bills, rent agreement, etc.
- Business / MSME registration certificate
- GST registration proof (REG-06 or REG-25)
- Latest GST returns (GSTR-1 or GSTR-4) as required
- Stock records, inventory statements
- Accounts receivables / debtor ageing schedule
- Audited financials, bank statements (last 12 to 24 months)
- Business projections / working capital plan
- KYC of promoters / owners
- Other documents as per bank’s underwriting norms
Documents Required
- GST Registration Certificate (REG-06/REG-25)
- Latest GST Returns (GSTR-1 or GSTR-4)
- PAN & Aadhaar of business/proprietor
- Current business bank statements (last 12–24 months)
- Inventory & receivables statements
- KYC of promoters/owners
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Direct application via Bank of Maharashtra branch
- Visit a Bank of Maharashtra branch that handles MSME / business banking
- Request the Mahabank GST Credit Scheme (GST Credit Loan Scheme) application
- Fill in the form, submit required documents
- Bank examines GST returns, stock/receivables, margin, creditworthiness, etc.
- If approved, the facility is sanctioned and disbursed
Option 3: Digital / online (if available)
- Bank of Maharashtra has a dedicated GST scheme page (digileads portal) for Mahabank GST Credit Scheme.
- Some portion may be applied online; submit scanned documents and await back-office verification
Power Combos with The Scheme
