Tag: covid loan for msme

SIDBI LOAN SCHEME UNDER COVID-19

SIDBI LOAN SCHEME UNDER COVID-19

Posted on by SDS Fin Advisory

SIDBI, India’s Small Industries Development Bank, has launched financial schemes for those engaged in producing medical products or services linked to Covid-19, stepping up the fight against Corona virus and supporting Micro and Small Businesses (MSEs) in tackling the present situation. The SIDBI Assistance to Facilitate Emergency (SAFE) answer against the corona virus scheme, which offers loans of up to Rs 50 lakh, focuses on helping certain MSEs start tasks that will help fight the pandemic. It could also help them purchase production machinery, raw materials, and consumables.

Role of the SAFE scheme

MSEs Make hand sanitizers, gloves, masks, headgear, safety gowns, aprons, bodysuits, ventilators, goggles, laboratories, and other products with a direct connection to Covid-19 may apply for a loan of up to Rs 50 lakh.
A 5% annual interest rate will be charged for a cumulative loan repayment period of 5 years.
Customers from both SIDBI and non-SIDBI will apply.
No prepayment or processing fees.

Another program, SAFE Plus, has been developed to meet additional working capital requirements by the government orders connected to the virus’s war.

Some features of the SAFE Plus scheme

SIDBI is responsible for the credit information costs.
Non-SIDBI customers must have a cash surplus in the previous year’s financial statements and an account not in the SMA 1/ 2 band.
Open to all MSMEs, are current SIDBI clients or fresh ones with clear orders from state government officials.
Escrow or Guardianship in support of SIDBI can be used as protection for non-SIDBI customers.
The amount owed is Rupees 100lakh, with an annualized rate of 5%.

SIDBI’s smile scheme

The scheme’s aim will provide MSMEs with soft loans, such as quasi-equity and term loans, on reasonably favorable terms to meet the necessary total debt for both starting a business and expanding an existing one.

The specially designed scheme provides various benefits to help the cash-strapped Indian MSME market, which is currently going through a difficult period.
Reasonable interest rates, soft loan financing of part promoter involvement, longer maturity duration, and speedy dispensation are just a few of the program’s highlights.

Eligibility Criteria

As per SIDBI, the scheme focuses on supporting new businesses in both the industrial and service sectors. Furthermore, while short listing companies, the focus is on funding small businesses in the MSME sector.
Current and new SIDBI customers are eligible for the program.
Existing businesses expanding to take advantage of new opportunities and pursuing modernization, technological upgrades, or other projects that will help them develop their business are included.
There is also a focus on the twenty-five listed Make in India industries. Additionally, eligible proposals from any other field can be considered on a case-by-case basis, based on their merits.

Offers under This Scheme

A minimal Loan Amount of Rs 10,00000 for the verified account and Rs 25,00000 lakh for other applications is available under the scheme. There is also a long payback period of up to ten years, with a 36-month suspension. Some of the program’s other highlights are mentioned below;
The loans provided under the program cannot be used to repay previous loans.
The policy also needs a minimum of 15% supporter investment with a maximum DER of 3:1.
Rates of interest begin at 8.36 percent* and go up from there (subject to change).

Conclusion

SIDBI(sidbi loans for startups) has established a new funding window (as part of its current Smile Scheme) that offers near/long loans at competitive rates. These loans are intended to help the healthcare industry, such as hospitals, nursing homes, and clinics, meet their coronavirus-fighting needs. Loans are provided out at a low-interest rate of 5% within 48 hours as per the schemes.

We at

SDS Fin Advisory LLP

are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work since 20 years. If you need any assistance kindly contact us on 848596003 or info@sdsfin.in.

Sidbi startup loan

NEW SCHEME FROM SIDBI UNDER COVID-19

Posted on by SDS Fin Advisory

NEW SCHEME FROM SIDBI UNDER COVID-19

Covid Startup Assistance Scheme (Sidbi Startup Loan):-

Startups are typically resource-constrained because they’re young, dynamic, and inventive. With the COVID-19 outbreak, which has caused lockdowns, startup founders must find new ways to work for their companies. They need to meet their capital needs while still planning for potential expansion. The tiny Industries Development Bank of India recognizes the operating and economic difficulties that businesses face and has been working to supply financial help and stability to them via schemes a bit like the COVID-19 Startup Assistance Scheme (‘CSAS’) (Sidbi Startup Loan). This program would help create startups that have demonstrated their ability to regulate the economic effects of Covid-19 while also ensuring the protection and financial security of their employees. SIDBI (Sidbi Startup Loan) doesn’t provide credit to businesses and instead focuses on equity and fund infusion.

SIDBI Scheme and Process:-

The CSAS program helps startups that will directly take advantage of the program. This program aims to supply businesses with fast capital expenditures within the next 45 to 90 days. As a result, various Committees of 5 members (3 from SIDBI and its candidates and a couple from the Wealth Management industry) will be formed to expedite the method. The processing charge is 1% of the sanctioned amount.
New businesses can get a loan of up to INR 2 crore via this program. The application will be screened using the following procedure:

⦁ On the SIDBI Scheme portal, the scheme document will be open.
⦁ On the SIDBI Scheme portal, an application called Credit Appraisal Memo (CAM) and a Self-Assessment Tool (SAT) will be made available.
⦁ Within 30 days of the scheme’s launch, startups must complete the CAM, SAT and email the documents to a given email address (csas@sidbi.in).
⦁ The Recommendation Committee will conduct a credit review and a video conference with the startup and the VC investor.
⦁ Following that, SIDBI’s planned Internal Credit Committee (ICC) will regularly approve loans to businesses. Businesses and VC investors may be asked to participate in a video chat conference during the ICC conferences.
⦁ Acceptance or denial status will be shared in the mail on the same day.
⦁ The part of Loan Agreements and supporting documents will be entirely digital.

Eligibility Criteria:-

⦁ Startups identified by the government have earned funding from at least one of the Alternate Investment Funds listed with the government SEBI (Securities and Exchange Commission) (Sidbi Startup Loan).
⦁ The unit economics of a startup should be optimistic.
⦁ The business should’ve been in existence for no more than ten years.
⦁ Startups with a minimum of 50 workers are eligible. This could include the troops on the ground.
⦁ Business must have a good attitude—estimated Career Earnings.
⦁ Business with projected revenue of Rs 10 crore to Rs 60 crore in FY 2019 and FY 2020.
⦁ The startup’s sponsor/developer should have put his own money into the Company.
⦁ Startup companies should have taken appropriate precautions to ensure the security and economic health of the workers.

Security:-

COMPULSORY SECURITIES:
⦁ First Pari-Passu charge on current benefits for the Company.
⦁ Coverage for crucial personnel up to the amount spent to protect the facility.

SOME CONDITIONS:

⦁ Without SIDBI’s permission, the sponsor or shareholder cannot make investments.
⦁ Any debt, like Venture Debt, cannot be paid with support.
⦁ It won’t be a subordinated loan.

Funding Source:

SIDBI’s financial statements, as SIDBI will supply the venture funding directly.

The motive of the scheme;

Aim of providing temporary financial assistance to businesses whose COVID-19 pandemic harms capital and liquidity. This funding is often used to spread money flow needs, like salaries/wages, rent, operating costs, vendor payments, and so on. The loan could even be wont to cover GST refunds.

We at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work since 20 years. We provide best service with most satisfactory result in timely manner. We have more than 1000 happy clients. Feel free to contact us on 848596003 or info@sdsfin.in.