Purpose

• To provide Sub-Debt support in respect of restructuring of MSMEs.

Target Group

• MSME enterprises (defined under MSME Act) such as Individuals / Proprietorship, LLP, Partnership, Private Limited Company or registered company.
• All Existing MSME borrower / entities who are stressed viz. SMA2 and NPA accounts as on 30.04.2020 and are eligible for restructuring (as per RBI guidelines) and are commercially viable as per the assessment of the banks.
• The Scheme is applicable for those MSMEs whose accounts were standard as on 31.03.2018 and are in regular operations, either as standard accounts, or as NPA accounts during financial year 2018-19 and financial year 2019-20. However, if the unit is not running now and is closed, the facility shall not be considered.

Nature of Loan

Term Loan

Quantum of Loan

• 15 % of Promoter(s) stake in the MSME entity (equity plus debt) or Rs 75 lakh whichever is lower

Collateral Security & Margin

• 2nd charge on the securities held with bank for the existing MSME facilities for the entire tenor of the PSB- CGSSD loan.
• 10% of the sub-debt limit to be brought by Promoters as margin/collateral.
• No Guarantee for the facility sanctioned under the scheme.

ROI

EBLR based: 8.50%

Repayment

• The maximum tenor for repayment will be 10 years with a moratorium period of 7 years (maximum) on the payment of principal.
• Till the 7th year, only interest will be payable.