SIDBI: General Purpose Term Loan
Setting up of a new MSME unit.
Expansion / Diversification/ modernisation/ technology
upgradation/ quality certification of existing units in MSME sector.
Acquisition of additional machinery / equipment.
For undertaking various marketing related activities
Any other activity (having linkages and benefits accruing to
MSME sector from the proposed assistance).
Nature of assistance:
Term loan and other forms of assistance such as Working Capital
Term Loan, etc.
Amount of assistance (limit) :
Need based (minimum `10 Lakh).
Desirable Financial Parameters
|Debt Equity Ratio(DER)
||Not exceeding 2:1
|Minimum Promoter’s Contribution
||New Projects- 33%
||Existing well performing units- lower contribution [up to 25%] could
|Period of Loan
||Maximum 8-10 years for term loan (including moratorium upto 18
|Upfront Fee (non refundable)
||1% of the term loan sanctioned
||Minimum overall asset coverage of 1.3 for existing units and 1.4 for