Liberalized Working Capital Assessment (LWCA)

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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
Validity	Valid till 31.08.2020

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. – 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.
Validity	Valid till 31.08.2020