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Eligibility
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New projects/existing units under Tiny/Small scale sector/service enterprises
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Project Cost
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Not exceeding Rs.50 lakhs (including margin for working capital) in case of new projects
Not exceeding Rs.25 lakhs in case of existing units/service entrepreneurs
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Promoters Contribution
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Minimum 10% of the project cost
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Debt-Equity Ratio
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65:35 OR 1.857:1 (excluding State Investment Subsidy)
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Quantum Of Assistance
Of Soft Loan Under Scheme
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Amount of gap in equity as per prescribed DER after taking into account promoters contribution, to the extent of 25% of the project cost subject to a maximum of Rs.10 lakhs
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Interest On Soft-Loan
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- NIL
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Annual Service Charges
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5% annual service charges.
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Repayment Of Soft-Loan
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Soft loan is repayable in 7 years (including moratorium of 3 years) in tune with the repayment period of normal term loan permitted by Bank for the project. Non repayment of Soft loan would attract interest as stipulated by SIDBI.
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Security For Soft-Loan
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- NIL
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