MSME Loan: SIDBI is offering this working capital loan; scheme available for limited period

SIDBI or Small Industries Development Bank of India is offering direct loan facilities to MSME as part of Emergency Credit Line Guarantee Scheme (ECLGS), the objective of which is to provide much needed relief to MSMEs, whose operations have been impacted because of the ongoing COVID-19 pandemic.  

One of the schemes which is being extended to the MSMEs is ‘Twarit’ or Timely Working Capital Assistance To Revitalise Industries In Times Of Corona Crisis. 

Know eligibility here! 

All existing borrower accounts including under Credit Delivery Arrangement with combined outstanding credit facilities up to Rs 25 crore as on 29.2.2020, and annual turnover of up to  Rs 100 crore for FY 2019-20 are eligible under the Scheme. 
The Scheme is valid for existing customers on the books of the Bank. Borrower accounts should be less than or equal to 60 days past due as on 29th February 2020 in order to be eligible under the Scheme. i.e. All borrowers which have not been classified as SMA 2 or NPA by any of the MLIs as on 29th February 2020 will be eligible for the Scheme 
Loans provided in individual capacity are not covered under the Scheme. 
Eligible entities must be GST registered in all cases, where such registration is mandatory. This condition will not apply to entities that are not required to obtain GST registration. 

Quantum of Assistance – Up to 20 per cent of total outstanding loans with SIDBI upto ₹25 crore as on February 29, 2020, with cap exposure of ₹5 crore or as modified by Govt of India / NCGTC, subject to borrower meeting all the eligibility criteria. 

Total outstanding amount would comprise of on-balance sheet exposure such as outstanding amount of WC limit, term loans and WCTL. 

Off-balance sheet and non-fund-based exposures will be excluded 

Interest Rate: Uniform rate of 8.25 per cent per annum with annual reset. 

Repayment: 4 years (moratorium of 1 year + repayment of principal in 3 years). No prepayment penalty.

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Note that promoter’s contribution towards processing fee and repayment is NIL. This scheme is valid up to 31 October 2020 or till notification by NCGTC whichever is earlier.