Secured Business Loan
What is the scheme?
The SBL is designed to provide faster dispensation of credit to MSMEs, particularly in the manufacturing segment and service sector. The scheme offers financial assistance for planned or unplanned business-related expenses, depending on the strength of the collateral security and the repayment capacity of the MSME, based on current operations.
How much funding can a unit expect under the Scheme?
A unit can borrow up to ₹ 10 Crs under this scheme. The funding amount is dependent on cash accrual and collateral security offered by the unit.
Which units are eligible under this scheme?
Existing MSME units having a net profit in 2 years out of the last three years with cash profits in all the three years are eligible under this scheme.
What are the loan tenure options?
The repayment tenure is offered for loan amount up to ₹ 50 Lakh is 3 years and 5 years for loan beyond ₹ 50 lakhs.
What kind of collateral and margin is required?
Funding is directly linked to collateral value. Generally, 60% of the collateral value is offered as a loan to the eligible borrower. Since the loan offered is an open term loan, margin requirement does not arise.