The government has provided Rs. 300000/- crores as collateral free automatic loan, due to Covid 19 Situation to get the economy back on track. Hence, government has given the opportunity to businesses by providing them emergency funds with 100% credit guarantee by government.

The government has given the clarifications regarding the aforesaid facilities. The government has given certain important clarifications. We reframed those clarifications in the form of FAQs:

FAQs

Q 1. Whether loan only to MSME?

Ans: No, All MSME, PMMY (Mudra Yojana) borrower & all other business entities, i.e. even trading concerns are eligible

Q 2. Whether Company will get this Loan?

Ans: All Proprietorship, Partnership, Registered Company, Trust & LLP can avail this Loan

Q 3. What are the basic criteria to avail loan?

Ans: 1. Loan Outstanding as on 29.02.2020 should not exceed Rs. 25 Crore since last 60 days i.e. from 31.12.2019

2. Total turnover for FY 2019-20 should not exceed Rs. 100 Crores

Q 4. Which loans covered in 25 Crores?

Ans: 1. All Term loan or CC loan which are fund based and which are part of the balance sheet will be covered for this purpose

2. Any Commercial vehicle loan or loan taken in personal capacity which is separate from business will not cover

3. If loan is off balance sheet it will not cover in this

4. Existing Mudra Yojana Loan will be covered in this criteria

Q 5. What if my financials for FY 2019-20 are unaudited?

Ans: In case of Unaudited financials self-declaration of the borrower can be considered by bank

Q 6. I have missed my last EMI by 40 days as on 29.02.2020, am I eligible for this loan?

Ans: 1. Yes, organization which has missed their EMI up to 60 days can apply

2. Organization classified as NPA or have missed their EMI by 61 to 90 days can not apply for this loan

Q 7. What if my Firm is not registered in GST?

Ans: GST Registration is compulsory

Q 8. Where should I apply for this loan?

Ans: You are eligible to apply to any financial institution where you are an existing borrower may it be Bank or NBFC.

Q 9. What is the rate of interest for this loan?

Ans: The maximum rate of interest 9.25% p.a.; if availed from bank & 14% in case of NBFC.

Q 10. What will be the tenure of loan? Do I get moratorium benefit in this loan?

Ans: Tenure of loan will be of 4 years. Moratorium will be for first 12 months

Q 11. Am I requiring paying any processing fees and guaranteeing fees in this loan?

Ans: No, There are no processing fees and Guarantee fees in this kind of loans

Q 12. Are there any foreclosure charges applicable?

Ans: No, There are no foreclosure charges applicable in this loan

Q 13. Whether any fresh collateral security to be furnished?

Ans: No, this loan can be availed on the basis of existing security given on existing loan.

Q 14. Till when this loan can be availed?

Ans: This loan can be availed till 31.10.2020 or

  • Till utilization of Rs. 300000 Crores whichever is earlier.
  • This is purely on first come first serve basis

We hope that it gives you the clarity regarding the scheme. You can mail us at kkgandassociates@gmail.com

Author Bio

Qualification: CA in Practice
Company: KHUSHBU KARAN GUPTA AND ASSOCIATES
Location: AHMEDABAD, Gujarat, IN
Member Since: 14 Jul 2017 | Total Posts: 1
A Professional who like to analyse & predict the future strategies View Full Profile

More Under Finance

Leave a Comment

Your email address will not be published. Required fields are marked *