Target Group

The Scheme is applicable for those MSMEs whose accounts have been standard as on 31.03.2018 and have been in regular operations, either as standard accounts, or as NPA accounts during FY 2018-19 and FY 2019-20.

Eligibility Criteria

 The Scheme is valid for MSME units which are stressed, viz. SMA-2 and NPA accounts as on 30.04.2020, who are eligible for restructuring as per RBI guidelines.

Maximum loan

Promoter(s) of the stressed MSME unit will be given credit equal to 15 % of his/her stake (equity plus debt) or Rs.75 lakhs whichever is lower. This personal loan shall not exceed the original debt of the beneficiary.

Purpose

Personal loans to the promoter(s) of stressed MSMEs shall be extended for infusion as equity / quasi equity in the business eligible for restructuring as per RBI guidelines for restructuring of stressed MSME advances

Margin

The promoters are required to bring in 10% of the sub-debt amount as collateral.

Rate of interest

As per prevailing Bank guidelines.

Security

The sub-debt facility so sanctioned by Bank will have 2nd charge of the existing assets financed under existing facilities for the entire tenor of the sub-debt facility.

Repayment

The maximum tenor for repayment will be 10 years from guarantee availment date or March 31, 2022 whichever is earlier.

Guarantee Cover

CGTMSE is providing Guarantee Coverage under Credit Guarantee Scheme for Subordinate Debt (CGSSD) for credit facilities, under the DAF-SDSM scheme. Guarantee fee of 1.50% per annum on the guaranteed amount shall be borne by the borrowers.

Duration of Scheme

The scheme would be applicable to all credit facilities sanctioned under CGSSD for a maximum period of 10 years from the guarantee availment date or March 31, 2023 whichever is earlier, or till an amount of Rs.20,000 Crore of guarantee amount is approved.