Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.
About this scheme…
Working Capital Loan was launched by Small Industries Developmental Bank of India (SIDBI) in collaboration with IDBI Bank, City Union Bank (CUB) and Yes Bank with the aim to provide working capital assistance to MSMEs.
How is it being implemented?
Under this Scheme, direct financial assistance in the form of Cash Credit facility is given to,
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Existing or new Micro, Small, and Medium Enterprises (MSMEs)
What’s on offer?
I. Product
- Cash Credit (CC) facility
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Ticket Size/ Drawing Power: will be set as per borrower’s instructions. For more information around this, please contact SIDBI via means mentioned below
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Option to choose banking platform from multiple banks (IDBI Bank/CUB/Yes Bank)
II. Purpose:
- Working capital requirements
III. Borrower Type:
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Individuals, Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Company, Private Limited Company, or Public Limited Company
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For more information around this, please contact SIDBI via means mentioned below
IV. Security or Collateral or Guarantee or Insurance
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For more information around requirement of Security, Collateral, Guarantee, Insurance; please contact SIDBI via means mentioned below
V. Interest Rate
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Marginal Cost of Funds Based Lending Rate (MCLR) linked rate of interest
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Furthermore, you may look for the prevailing MCLR at any point of time by scrolling here and looking for Interest Rate Structure – Direct Lending Products
VI. Processing Fee
- For more information around this, please contact SIDBI via means mentioned below
VII. Margin Money Requirement
- For more information around this, please contact SIDBI via the means mentioned below
VIII. Tenure, Repayments & Pre-Closures
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Tenure: CC facility is renewed at regular intervals
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For more information around this, please contact SIDBI via the means mentioned below
IX. Turnaround Time
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Borrower is likely to receive a paperless in-principal offer note (as per his/her instructions for setting Drawing Power) soon after completion of digital journey i.e. filing the loan application online
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Post this, the borrower may need to approach their chosen Bank as suggested in Point I above for availing the CC facility
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Also, for existing term loan borrowers of SIDBI, there will be a single window clearance to avail working capital facilities
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For more information around this, please contact SIDBI via the means mentioned below
Interested? Read ahead to check your eligibility….
I. Are you are an existing or new Micro-enterprise, Small-enterprise, or a Medium-enterprise as per MSMED act of 2006?
II. Your business has not availed working capital facility from any other Bank or Financial Institution?
OR
Your business’ working capital account(s) is being considered for takeover by SIDBI as a part of term loan takeover subject to standard guidelines?
III. Your business has never defaulted with any Bank(s) or Financial Institution(s)?
IV. Total Outside Liabilities to Tangible Networth (TOL/TNW) ratio of your business does not exceed 4:1?
V. Is the Current ratio of your business at least 1.25 times?
VI. Is the Interest Coverage ratio of your business at least 1.5 times?
VII. For existing MSMEs, is the Overall Asset Coverage ratio of your business at least 1.3 times?
OR
For existing MSMEs, is the Overall Asset Coverage ratio of your business at least 1.4 times?
If your answers to the questions above are an emphatic YES, you are all set to avail loan under SIDBI’s Working Capital Loan!
So…how big is this scheme and what has been done so far?
I. Details of progress under this Scheme do not seem to be available in the public domain
So, now, how should you go about it?
I. For submitting application, register and apply online on the SIDBI website here
II. For information on the loan application, application process and documentation requirements, please contact SIDBI via means mentioned below
III. For any queries, please contact SIDBI:
OR
- Call on Toll Free Number: 180 022 6753, Timing: 10.30AM – 6.00PM
OR
- WhatsApp on +91 86930 33333
OR
- E-mail: bd.dcv@sidbi.in
OR
- Contact SIDBI Branch Office near you
OR
- Contact SIDBI Regional Office near you
OR
Go on then…and do spread the word!
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