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1) LWCA model for MSME borrowers, Max limit up to Rs.5.00 Crores (Including revised Limit

Eligibility

  • Existing MSME Borrower. Standard Accounts which are not SMA-2 as on date of sanction.
  • No Takeovers to be sanctioned under this scheme as the scheme is to provide assistance to our existing borrowers to tide over the fallout of COVID -19 Pandemic

Purpose

To provide additional / renewal finance on liberalized assessment model/terms for build-up of current assets.

Nature of Facility

Working Capital (Maximum up to Rs.5.00 Crore)

Quantum of Finance

Borrowers will be eligible for WC limits up to max 33 % of the revised projected annual turnover for FY-21. Max Rs.5.00 cr. (FB + NFB), whichever is lower.

Margin

10% on Stocks and 15% on Receivables- Cover period on receivables may be increased to up to max 90 days over the existing sanctioned cover period

Rate of Interest

As per Extant Guidelines
Fees & Charges
  • Processing Fee : As per Extant Guidelines
  • Documentation Charges : As per Extant Guidelines

2) LWCA model for all MSME & Corporate borrowers, Limit above Rs.5.00 Crores.

Margin

  • In case of working capital limits assessed under Cash Budget method – Minimum 20%
  • In case of working capital limits assessed under working capital gap method. – Reduction in margin may be allowed by maximum 5% from the existing permitted margin level (e.g. if current allowed margin on stock / receivables is 30% revised margin can be allowed upto 25% only).

Holding level of current assets

  • In case of working capital limits assessed under Cash Budget method – Not applicable
  • In case of working capital limits assessed under working capital gap method. –
    1. Cover period of receivables may be increased up to maximum 90 days over and above the existing sanctioned terms.
    2. DP shall be allowed within the sanctioned limit or available DP after maintaining reduced margin, whichever is lower.