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
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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
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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).
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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. –
- Cover period of receivables may be increased up to maximum 90 days over and above the existing sanctioned terms.
- DP shall be allowed within the sanctioned limit or available DP after maintaining reduced margin, whichever is lower.
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