SIDBI: General Purpose Term Loan
SIDBI: General Purpose Term Loan
Objective:
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Setting up of a new MSME unit.
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Expansion / Diversification/ modernisation/ technology upgradation/ quality certification of existing units in MSME sector.
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Acquisition of additional machinery / equipment.
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For undertaking various marketing related activities
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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).
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Desirable Financial Parameters |
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| 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 be accepted | |
| Period of Loan | Maximum 8-10 years for term loan (including moratorium upto 18 months) |
| Upfront Fee (non refundable) | 1% of the term loan sanctioned |
| Security Margin | Minimum overall asset coverage of 1.3 for existing units and 1.4 for new projects. |
