SIDBI: Secured Business Loan for MSMEs
SIDBI: Secured Business Loan for MSMEs
Objective:
- To provide fast dispensation of credit to MSMEs in manufacturing as well as service sector for planned or unplanned business related expenditure on the strength of the collateral security and repayment capacity based on current operations.
Eligibility:
- Existing MSME unit shaving net profits in2 years out of last three years with cash profits in all the three years.
- Other financial norms as specified from time to time
Nature of Assistance:
- Open term loan
Quantum of assistance :
- Linked to gross cash accruals and collateral security value
- 70% of collateral security (residential and commercial property within municipal/urban limits)
- 60% of value of collateral security (industrial property)
- Maximum assistance not exceeding `10 crore.
Eligible heads for financing :
- For any bonafide business expenditure.
Rate of Interest (coupon rate):
- Fixed Interest Rate linked to PLR.
Repayment Period :
- Upto 15 years including moratorium.
Security:
- Immovable properties by way of collateral
Upfront Fee/ Processing Charges:
- Upto 1%
