Subordinated Debt Scheme

Get Business & Product InformationBusiness ProductsAgriculture ProductsLatest Information Corner
Subordinated Debt Scheme

 

Allocation of Rs. 20,000 Crores towards this scheme by Government.
Government targets to help 2 lakh MSME Units who are stressed and in need for equity support

Features

Purpose : Provide personal loan to promoters of stressed MSMEs for infusion as equity / quasi equity in the business eligible for restructuring as per RBI

  • Interest rate : External benchmark rates prescribed by RBI + 1%
  • Loan Amount : 50 % of promoter’s stake in the MSME entity (equity plus debt) or Rs 75 lakhs whichever is lower as per last Audited Balance Sheet
  • Facility : Fund based term loan
  • Validity : Applicable to sub-debt sanctioned for a maximum period of 10 years from the guarantee availment date or March 31, 2023 whichever is earlier, or till an amount of Rs 20,000 crore of guarantee amount is approved
  • Processing fee : Nil

Eligibility

  • Loan for stressed MSMEs for infusion as equity / quasi equity in the business eligible for restructuring.
  • Promoters of MSME Unit which ae stressed viz SMA-2 and NPA Accounts as 30.04.2020 and can become commercially viable as per the assessment of the Bank.
  • The scheme is applicable for those MSMEs whose accounts have been standard as on 01.01.2016 and have been in regular operations either as standard accounts or as NPA accounts during financial year 2018-19 and financial year 2019-2020

Repayment

  • Tenor : Maximum 10 years from the date of disbursement.
  • Moratorium : Maximum 7 years for principal only, interest is payable at monthly intervals.
  • The principal shall be repaid in 36 equal installments after the moratorium period is over

Last Updated On : Thursday, 30-06-2022

Interest Rates

8.50%* p.a. onwards

w.e.f. 05.04.2024

*T&C Apply.

 

View All
SEE PRODUCTS APPLY NOW
Quick Links