New Scheme from SIDBI for Term Loan and WC

Posted on by SDS Fin Advisory
Product Parameters
1. Objective 1. Providing financial support to all MSMEs which are manufacturing products or providing services which are directly related to fighting corona virus, such as Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, Zincovit, Limcee, Ivermectin, Paracip, Azax, Betadine, etc), Ventilators, PPEs, inhalation Masks, IV Fluid – DNS / Dextrose, IV Sets, IV Cannula, ICU Beds, Cardiac monitors, Syringe pumps, Portable X ray machines, Endotracheal tube, Suction tube, etc.

2. Providing financial support to all MSMEs which are manufacturing Oxygen cylinders / Oxy generators / Oxygen concentrators / Liquid Oxygen for medical use or providing services (viz. transportation, storage, refilling, etc.) which are directly related to supply of such items to the customers.
2. Purpose of loan To acquire equipment/P&M/other assets including purchase of material
3. Quantum of Loan Maximum `200 lakh
4.  Security/documentation I. Existing SIDBI customers:
For Term Loans

A.    Charge on the assets acquired / to be acquired under the scheme.

B.    If minimum ACR is not achieved, CGTMSE cover for eligible customers may be taken or any other security to ensure ACR.

For WCTL

C.    Amount equivalent to 25% of our WCTL, kept as cash collateral. SIDBI FD or other forms of cash collateral such as surrender value of valid LIC policies etc. may be accepted.
II. New to SIDBI customers:
For Term Loans
A.    Exclusive first charge by way of hypothecation on assets acquired out of our assistance.

B.    CGTMSE cover or any other security as decided by the BO/BCC.

For WCTL

C.    Exclusive/first/first pari-passu charge on current assets financed (as may be feasible)

Obtain NOC from other WC banker for creation of charge on current assets shall be mandatory. In case of non-availability of NOC, charge on alternate assets may be taken depending upon  availability  of unencumbered / other assets to meet ACR requirements.

D.    Amount equivalent to 25% of our WCTL, kept as cash collateral. SIDBI FD or other forms of cash collateral such as surrender value of valid LIC policies etc. may be accepted.
5. Repayment TL – Generally, repayment period shall be 03 years, including maximum moratorium period of 01 year. Repayment tenure may be extended upto 5 years on case to case basis based on merit of the case.

 

WCTL – Repayable in 12-18 months including suitable moratorium.
6. Rate of Interest
Repayment period upto 3 years 4.50% p.a. to 5.50% p.a.
Repayment period more than 3 years 5.00% p.a. to 6.00% p.a.

Wherever CGMTSE cover is stipulated, CGTMSE charges shall be borne by SIDBI.
New Scheme from SIDBI for Term Loan and WC