OasGroupsLOANS
SME
Products of New Loan : SIDBI
About Us:
Small Industries Development Bank Of India (SIDBI)
Small Industries Development Bank of India (SIDBI) was initially set up on 2nd April 1990 under the "Act of Indian Parliament". They are an institution whose primary goal is to promote, Finance and Develop Micro, Small &Medium Enterprise (MSME) sector. SIDBI puts 100?forts in meeting the financial and developmental needs of MSME sector so they can survive and compete in the market.
SIDBI's key initiatives since 25 years:
1. Since 25 years they have provided a cumulative assistance of approximately INR 5.40 lakh crore into MSME segment.
2. SIDBI has had a direct impact of more than 3.6 crore people/enterprises through their network of 80 offices that are spread across India.
3. Till now SIDBI has extended loans, equity and quasi-equity through its Micro Finance operations that has aggregated to INR 13,689 crore. This benefits more than 3.56 crore disadvantaged people that are mostly women.
4. SIDBI also supports more than 1.16 lakh existing entrepreneurs through their initiatives.
5. SIDBI has also developed a pool of 1000+ professionals with 22% women and 40% that belong to SC/ST and OBCs category for serving the needs of dynamic and consistently evolving MSME Sector.
General Purpose Term Loan:
Objective:
The main objective of a general purpose term loan is setting up a new MSME unit.
This loan also helps in Expanding / Diversification / modernization / technology upgrade / quality certification of existing units in MSME sector.
This term loan also helps in acquiring additional machinery / equipment.
This term loan also helps in Also for undertaking.
If there's any other activity (having links and benefits accruing to MSME sector from proposed assistance).
Nature of assistance:
You can get a term loan and assistance on Working Capital Term Loan.
Amount of assistance (limit):
The assistance is need based with the minimum amount starting from 10 Lakhs.
Requirements:
Debt Equity Ratio (DER) - This ratio must not exceed 3:1.
Minimum Promoter's Contribution - For a new project this will be 33%. For existing projects and well performing units, a lower contribution up to 25?n be accepted.
Period of Loan - In general cases, the term loan tenure can be given up to a maximum of 8-10 years (including moratorium period up to 18 months)
Upfront Fee - Generally, the upfront fees are 1% of the term loan sanctioned. These fees are non refundable.
Asset Coverage Ratio (ACR) - For new entities, the asset coverage will be 1.4 including a FACR for 1.00. For existing units the asset coverage ratio should be 1.3.
Secured Business Loan For MSMEs (SBL)
Objective:
The ultimate objective of a Secured Business Loan (SBL) is to quickly provide credit to MSMEs in manufacturing as well as the service sector. This credit is given for both planned and unplanned business related expenditure on the strength of the collateral security and repayment capacity based on current operations.
Eligibility:
In order to be eligible for this special loan, Existing MSME units must produce proof of net profits in 2 out of last 3 years. They must also produce cash profits in past 3 years.
The borrower must not be a defaulter to any Bank or Financial Institution in India.
There are some other financial norms as specified from time to time which must be followed in order to get this loan.
Nature of assistance:
This is an open term loan.
Quantum of assistance:
This loan is linked to your gross cash accruals and the pledged collateral security value.
You can get maximum assistance in the loan amount up to 10 crore rupees.
Eligible heads for financing:
This loan can be given for any bona-fide business expenditure.
Rate of Discount:
The fixed Interest rate linked to PLR as per the credit rating.
Security:
The security is up to 10 years including moratorium.
Foreign Currency Assistance:
Foreign currency assistance can be availed under the scheme towards creation of tangible assets subject to natural hedge & other terms & conditions.
Working Capital Assistance To MSMEs:
Objective:
The primary objective here is to provide timely and adequate WC assistance to eligible MSMEs for meeting WC requirements under the SIDBI - IDBI Working Capital Arrangement.
Eligibility parameters:
The main parameter is that the unit should be an eligible MSME unit. WC assistance shall be considered to any of the following category of customers
Existing customers who are solely banking with SIDBI (including enhancement).
Existing customers of SIDBI (who are also banking with other banks) and have placed major share of immovable security with SIDBI.
Existing well performing units who do not enjoy WC facility with any other bank.
New entities, where term loan is considered by SIDBI.
Nature of assistance:
All forms of rupee assistance for financing WC requirement.
Financial Parameters:
Satisfying minimum financial parameters under the scheme.
Total outside liabilities/ tangible Net worth (TOL/TNW) - Not to exceed 4:1.
Current Ratio - 1.25.
Interest Coverage - Minimum 1.5 times.
Overall Asset Coverage - 1.3 for existing units and 1.4 for new projects.
Internal Rating - As per existing Bank's Norms.
Retail Loan Scheme For Trade Finance (RLS)
Objective:
The objective of RLS is to provide medium term to long term finance for capex/ working capital to existing well performing traders.
Purpose of assistance:
For capex, such as acquisition of business premises, go-down, shop, office premises, repair, furnishing, renovation of existing business premises and/or purchase of furniture & fixtures, equipments, tools, computers, UPS, DG set, etc.
For working capital/ additional working capital (in case the borrower is already having working capital/overdraft facility with some other Bank/FI).
Export trade shall not be covered under RLS.
However, assistance will exclude expenditures for speculative purposes like investing in stock markets, non-business related commodity trading, commercial real estate activity etc.
Target group:
Wholesale Traders & distributors engaged in trading of goods & services will be covered under security model since wholesale traders are not covered under CGTMSE cover.
MSE Retail Traders and Dealers
In case of MSE Retail Traders and Dealers, they should be dealing with products of at least one large reputed supplier like Kajaria, Ultratech, Hindustan Lever, etc. A large reputed supplier would mean a company having a turnover of around Rs.1000 crore or more.
Large Commercial real estate-based models viz. supermarkets, malls, departmental stores, retail chains, etc. are not covered under RLS.
Eligibility Criteria:
Minimum vintage - 3 years operations
Cash profits - Past three years
Sales - A downward fluctuation in sales (not more than 10-15%, as per last audited balance sheet) is acceptable provided there are cash profits in the balance sheet.
CMR - As per handbook.
CIBIL TU score - Weighted average Min 700.
Registrations - GST, Shops and Establishment Acts, other locals acts, as applicable.
Nature & Quantum of assistance:
Minimum Loan size : Rs.10 lakh
Maximum Loan size:
Retails traders and dealers: 50 lakh
Wholesale traders : 100 lakh
Up to 100% finance shall be available from SIDBI.
Where the assistance is proposed towards working capital component the loan amount shall not exceed 20% of the sales turnover based on the last FY audited balance sheet/CA certified Balance Sheet/GST returns.
List of top 20% of the products with contribution to revenue in previous 3 years may be obtained during discussions on the proposal to analyse the trend.
In cases where additional WC is required for borrower already availing WC facility from other banks etc., latest CMA data and bank's sanction/renewal letter to obtained prior to working out WC requirements as per Nayak Committee/2nd Method.
Prepayment charges:
Prepayment charges are 2% of principal outstanding.
Repayment Period:
36 to 60 months including moratorium of up to 3 months.
Flexible repayment schedules may be proposed to take care of seasonal peaks / troughs in turnover.
Upfront Fees:
1% +GST
Contact for More Details: +919471388087