1. The Small Industries Development Bank of India (SIDBI), has launched two loan products for MSMEs in the healthcare industry to help them with the required financial support in the fight against the COVID-19 pandemic.
2. The schemes are devised under the guidance from Government of India which facilitates funding for production and services related to supply of oxygen cylinders, oxygen concentrators, oximeters and essential drugs. 3. The two new loan products are:
| Particulars | SHWAS | Arog |
| Object | SIDBI assistance to Healthcare sector in War Against Second wave of COVID19 (SHWAS) |
SIDBI Assistance to MSMEs for Recovery & Organic Growth during COVID19 pandemic (AROG) |
| Key Points | Micro, Small & Medium Enterprises engaged in manufacturing of oxygen cylinders, oxy-generators, oxygen concentrators, liquid oxygen or providing services in transportation, storage, refilling to supply of these items. | Micro, Small & Medium Enterprises engaged in manufacturing of products or providing services which are directly related to fighting corona virus, such as Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, etc), Ventilators, PPEs etc. |
| Eligibility Criteria | -Existing Customers – Cash profit in last audited balance sheet (i.e. FY 2020)
-New customers to SIDBI – Cash profit in last two years. -Satisfactory Credit track record with existing Bankers / FIs. |
• Existing Customers – Cash profit in last audited balance sheet (i.e. FY 2020)
• New customers to SIDBI – Cash profit in last two years. • Satisfactory Credit track record with existing Bankers / FIs |
| Loan Amount & Interest Rate | -Term Loan for purchase of equipment / machines
-Working Capital Term Loan for purchase of raw materials or executing confirmed orders -Maximum: Rs. 200 lakh -RoI: 4.50%-5% p.a. |
• Term Loan for purchase of equipment / machines
• Working Capital Term Loan for purchase of raw materials or executing confirmed orders • Maximum:200 lakh • RoI:5.50%- 6% p.a. |
| Other Aspects | -Repayment period Term Loan – upto60 months WCTL – Upto 18 months
-Moratorium upto 12 months included. |
• Repayment period Term Loan – upto 60 months WCTL – Upto 18 months
• Moratorium upto 12 months included. |
| Application | • One Page Application
• Standard KYC checks and due diligence • Sanction within 48 hours post receipt of mandatory information |
• One Page Application
• Standard KYC checks and due diligence • Sanction within 48 hours post receipt of mandatory information |
| Documentation/Disbursement | -Simple Loan documentation
-Direct payment to supplier for purchase of equipment / machinery / MFAs and raw material |
-Simple Loan documentation
-Direct payment to supplier for purchase of equipment / machinery / MFAs and raw material |
| Key Attractions | -Upto 100% finance
-Nil processing fee -Attractive Interest Rates -Credit Guarantee option also available (Charges to be borne by SIDBI) |
-Upto 100% finance
-Very Low collateral option -Nil processing fee -Attractive Interest Rates -Credit Guarantee option also available (Charges to be borne by SIDBI) |
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