New Schemes
Rs. 3.00 Lakh crores loans to MSMEs: Collateral Free, Guarantee Free
Description
  • Businesses / MSMEs have been badly hit due to COVID19 need additional funding to meet operational liabilities built up, buy raw material and restart business;
  • Guarantee free and collateral free loans amounting to Rs. 3.00 Lakh crores have been approved;
  • The Scheme is implemented by Department of Financial Services.
Nature of Assistance
  • Upto 20% of entire Outstanding credit as on 29.2.2020;
  • Loans up to Rs. 25 cr. Outstanding and units upto Rs. 100 cr. turnover eligible;
  • Loans to have 4 year tenor;
  • 12 months moratorium on Principal repayment;
  • Interest to be capped.

Salient Features
  • 100% credit guarantee cover to Banks and NBFCs on principal;
  • Scheme can be availed till 31st Oct 2020;
  • No guarantee fee, no fresh collateral.
Expected Impact
  • It is expected that about 45 lakh units can take benefit and resume business activity and safeguard the employment of people.
Who Can Apply
  • All businesses/ MSMEs are eligible.
How to Apply
  • Through Banks, DFS and National Credit Guarantee Trustee Company Ltd (NCGTC).
For more Information:
Kindly Visit our Single window System @
www.champions.gov.in
Or write on email:
champions@gov.in/ info@ncgtc.in

 
User Image DISTRESSED ASSETS FUND - SUBORDINATE DEBT SCHEME FOR MSMEs
Credit Guarantee Scheme for Subordinate Debt (CGSSD)
Description
  • 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;
  • Promoter(s) in turn will infuse this amount in the MSME unit as equity and thereby enhance the liquidity and maintain debt-equity ratio.
Nature of Assistance
Guarantee for the sub-debt: 90% guarantee coverage would come from the scheme / trust and remaining 10% from the concerned promoter(s);
The maximum tenor for repayment will be 10 years. There will be a moratorium of 7 years on payment of principal.
Salient Features
  • In a situation, where an outright loan is dicult, sub-debt with guarantee will provide the requisite financing to the MSME Units,
  • Subordinate debt will be of substantial help in sustaining and reviving the MSMEs which have either become NPA or are on the brink of becoming NPA.
  • 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.
Expected Impact
  • Provision for sub debt will be of Rs. 20000 crores which is likely to benefit two lakh MSMEs;
  • A bigger number of MSME promoter(s) can do business without worry and avail present opportunities;
  • With this help, the MSMEs will continue to function, provide jobs and contribute in National Economy.
Who Can Apply
  • Operational MSMEs which are NPA or are stressed will be eligible
  • Promoter(s) of such units can apply
How to Apply
  • Promoter(s) of MSMEs meeting the eligibility criteria may approach scheduled commercial banks to avail benefit under the scheme
For more Information: Kindly Visit our Single window System @ www.champions.gov.in/ www.cgtmse.in or write to us on email: champions@gov.in

There are ways to come out
from Distress...
 
Equity Infusion for MSMEs through Fund of Funds
Description
  • MSMEs face severe shortage of equity. The Fund of Funds will provide equity funding for MSMEs with growth potential and viability with the ultimate aim of encouraging MSMEs to grow and get listed on stock exchanges;
  • VCs/PEs firms do offer early stage funding but very few of them provide growth stage funding;
  • With Government intervention, this scheme would be able to intermediate different types of funds into underserved MSMEs and address the growth needs of viable and high growth MSMEs.
Nature of Assistance
Growth Funding to MSMEs through equity financing: GOI will support VC/PE firms in investing in commercially viable MSMEs in meeting their growth requirements. The proposed fund of funds will encourage private sector investments in the MSME sector and leverage Rs.50,000 crore. The actual investment may be even higher.
Private funding leverage: Fund of Funds aims to achieve private funding leverage through the use of professional fund managers with access to funding and strategic performance oversight. This will help attract a wide range of investors, including financial institutions, corporate investors, banks, other government funds, HNW individuals to invest into MSMEs.
Salient Features
  • Under the scheme, there would be a Mother Fund, where Government of India will be Anchor Investor;
  • The Mother Fund can invest daughter funds who can deploy the investments in targeted MSMEs;
  • This will create a partnership with MSMEs in their growth journey and enable them to grow bigger and get listed on stock exchanges.
Expected Impact
  • The scheme is expected to facilitate equity financing of Rs.50,000 crore in the MSME Sector
Who Can Apply
  • All MSMEs are eligible
How to Apply
  • Through Investor Funds onboarded and registered with proposed Fund of Funds
For more Information:
Kindly Visit our Single window System @
www.champions.gov.in
champions@gov.in