SIDBI : Scheme for facilitating payments to MSMEs in
Construction Sector (CRE)
Construction sector project. is one of the biggest business
providers to MSME suppliers and service providers. Timely payment from
construction entities is one of the major problems faced by these MSME
vendors. The scheme will facilitate timely payments to such MSME vendors.
The scheme is intended to cover Commercial Real Estate [CRE]
exposures in construction sector [excluding solely residential projects].
For project based assistance
Borrower having previous experience in successfully
implementing construction sector projects.
Preferably, the borrower may be availing credit facilities
from other banks with satisfactory track record.
New entities from non construction background could be
considered with higher collateral requirements.
Line of Credit (LoC)
Multi project entity promoted by well established promoters/
groups in construction sector in existence for at least 5 years and have
successfully completed at least 5 projects
Borrowing entity having Profitable track record for 3 years
and turnover in the last completed FY at least `100 crore.
The entity should be availing credit track record.
Assistance is subject to MSME linkages:
Forms of assistance :
Quantum of assistance :
Based on MSME engagement in the project(s)
Not exceeding `35crore per project.
Assistance shall not exceed `15 crore for sole proprietary
Eligible heads for financing :
Rate of Interest (coupon rate) :
Generally up to 3-5 years including moratorium in case,
where the revenue will be by way of sale of properties only.
In all other cases (i.e., rentals or sale or both etc) the
repayment including moratorium may be allowed up to 8-10 years.
Repayment period including moratorium should be commensurate
and aligned to the projected revenues.
Provision kept for advance repayment based on actual cash
inflows (without pre-payment premium).
Line of Credit:
For project specific assistance
All movable and immovable assets of the project.
Other Collateral securities, if any stipulated
Escrow of project receivables for project based assistance