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Rs 20,000 crores Subordinate Debt for Stressed MSMEs

Ministry Ministry of Micro, Small and Medium Enterprises (MSME)
Related Scheme Rs 20,000 crores Subordinate Debt for Stressed MSMEs
Description
  •  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
Nature of assistance
  • 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);
Who can apply? This Scheme seeks to extend support to the promoter(s) of the operational MSMEs which are stressed and have become NPA as on 30th April, 2020;
How to apply? MSMEs meeting the eligibility criteria may approach eligible Banks .
Whom to contact Lending bank branch

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

Download Scheme guidelines

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

https://champions.gov.in/MyMsme

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

Email: ceosecretariat@cgtmse.in

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