SIDBI Trader Finance Scheme (STFS)

What is the scheme?

SIDBI Trader Finance Scheme (STFS) is designed for financial assistance to MSME Retailer/ Wholesalers, looking for business-related expenditure such as Working capital and Capital Expenditure.

How much funding can a unit expect under the Scheme?

The loan can be disbursed as Term Loan and Working Capital up to ₹ 100 Lakhs with threshold funding of ₹ 10 Lakhs.

Which units are eligible under this scheme?

SME Retail Traders and Wholesalers in existence for 3 years with satisfactory financial history are eligible under this scheme. The unit with Interest coverage of 1.50 times for the tenure of the loan with debt-equity of 2 and Current Ratio of 1.25 are the basic financial parameters which are taken into consideration.

What are the loan tenure options?

Loan Tenure is dependent on Risk Prole and Project Implementation Schedule and cash ow of the unit. SIDBI offers extended tenure up to 5 years including moratorium up to 1 year to eligible units.

What kind of collateral and margin is required?

It is expected to cover the loan amount with 1.25 times of collateral. Proposals also can be considered for Credit Guarantee. The Promoter’s margin is expected at 25%.