SIDBI : Scheme for Asset Backed Assistance to Service Sector Entities
SIDBI : Scheme for Asset Backed Assistance to Service Sector Entities
Objective:
To meet the credit needs of entities / projects creating fixed assets as part of the project / business or offering fixed assets as collateral.
Indicative profile of such businesses:
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Hotels, Hospitals, Logistic Companies etc.
Eligibility:
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New / Existing Service Sector Entities
Forms of assistance:
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Term Loan/ Revolving Term Loan / Line of Credit
Quantum of assistance :
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Need based . Generally not less than `50 lakh.
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Maximum assistance is subject to caps not exceeding 50 crore for registered MSME units and 35 crore for other eligible service sector projects.
Eligible heads for financing:
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Capex, movable assets including equipment, current assets, intangibles, WC/ WC margin etc
Rate of Interest (coupon rate):
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As per internal rating and linked to PLR
Repayment Period:
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Upto 12 years including moratorium for project based assistance.
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For non project assistance, upto 5 years including moratorium.
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For exclusive equipment financing, generally 3-6 years including moratorium.
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Repayment could be fixed installments or ballooned in line with the expected cash flow.
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For seasonal industries/ businesses, repayment could be suitably structured
Security:
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The assistance shall be secured by assets acquired under the assistance and/ or other unencumbered assets of the borrower.
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Other acceptable collateral securities, as may be stipulated.
Upfront Fee
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Upto 2 %
