Rs 20,000 crores Subordinate Debt for Stressed MSMEs

•  Subordinate debt will provide a substantial help in sustaining and reviving the MSMEs which have either become NPA or are on the brink of becoming NPA.
• Promoter(s) may infuse this amount in MSME unit as equity and thereby enhance the liquidity and maintain debt-equity ratio.
•  In a situation, where an outright loan is difficult, sub-debt with guarantee will provide the requisite financing to the MSME Units

• Promoter(s) of the MSMEs will be given credit equal to 15% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.
• The maximum tenor for repayment will be 10 years. There will be a moratorium of 7 years on payment of principal.
• Guarantee for the sub-debt: 90% guarantee coverage would come from the scheme / trust and remaining 10% from the concerned promoter(s);

CEO, CGTMSE, SIDBI, Swavalamban Bhavan, C-11, G- Block, BKC, Bandra (East), Mumbai 400051

Phone:(022):67221553, 67221483

For General Queries please contact: Tool Free No. : 1800222659

http://dcmsme.gov.in/AccesstoCredit.htm

https://champions.gov.in/MyMsme

https://www.cgtmse.in/About_us.aspx

Email: ceosecretariat@cgtmse.in