Asset-Backed Assistance Scheme

What is the scheme?
Asset-Backed Assistance to Service Sector Entities is designed to meet the credit needs of entities/projects creating fixed assets as part of the project/business or offering fixed assets as collateral. The offering typically caters to entities like Hotels, Hospitals, Logistics Companies etc. The entities primarily receive assistance in the form of Term Loan/ Revolving Term Loan / Line of Credit with a need-based sum, generally not less than ₹ 50 Lakhs.

How much funding can a unit expect under the Scheme?
The funding offered under this scheme is in the form of Term Loan/ Revolving Term Loan / Line of Credit with a minimum of ₹ 50 lakhs and maximum up to ₹ 50 Crs. However, the loan is need-based in nature.

Which units are eligible under this scheme?
New or Existing Service Sector Entities such as Hotels, Hospitals, Logistic Companies, etc., to meet the credit needs of entities or projects creating fifixed assets as part of the project or business or offering fixed assets as collateral.

What are the loan tenure options?
The repayment tenure is offered up to 12 years including moratorium of 18 months for project-based assistance, 5 years including moratorium period of non-project aid and 3 to 6 years for exclusive equipment financing.

What kind of collateral and margin is required?
The assistance shall be secured by assets acquired under the aid and/or other unencumbered assets of the borrower. Margin is generally 25% of the asset under creation.