Rs 20,000 crores Subordinate Debt for Stressed MSMEs

• 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,

Eligibility/Applicability

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;

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);

How to Apply

MSMEs meeting the eligibility criteria may approach eligible Banks.

Contact

• Lending bank branch,
• CEO, CGTMSE, SIDBI, Swavalamban Bhavan, C-11, GBlock, BKC, Bandra (East), Mumbai 400051.
• Guidelines of this scheme can also be downloaded from :
  • UDAAN
  • CGSSD