General Purpose Term Loan

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What is the scheme?

SIDBI General Purpose Term Loan is used for setting up of a new MSME unit, or expansion of existing units or undertaking various marketing related activities.

How much funding can a unit expect under the Scheme?

This is a need-based loan and with a minimum limit of ₹. 10 Lakhs disbursed in the form of Working Capital Term Loan.

Which units are eligible under this scheme?

New, as well as existing MSME units, are eligible with detailed expenditure and investment details.

What are the loan tenure options?

Generally maximum 8-10 years including moratorium up to 18 months.

What kind of collateral and margin is required?

Asset Coverage is required at 1.3 times for existing units and 1.4 times for new entities with FACR of 1. Promoter margin is required to be 33% in the case of a new unit and can be reduced to 25% for existing units.