1. Who are eligible to avail CECL?
All existing borrowers whose accounts are Standard (including SMA 0 and SMA 1 status) as on date of sanction irrespective of internal rating. (SMA 2 status accounts are not eligible).
Existing customers who have availed other loan products like “SME Assist”, “SLC for MSME” and “SLC for GST Input Credit” etc. are also eligible for the facility. However, total additional exposure including the CECL facility should not exceed 25% of the Fund Based Working Capital limits.
2. Whether NBFCs/HFCs/MFIs are eligible for availing CECL loans?
CECL facility is not extended to NBFCs/ HFCs/ MFIs and other financial intermediaries.
3. For what purposes CECL can be given?
CECL can be given to meet the temporary mismatch arising out of COVID-19 involving payment of statutory dues, salary/ wages/ electricity bill, rent etc.
4. What is the loan amount that can be sanctioned under the scheme?
Loan amount: Maximum 10% of the existing fund based working capital limits. The maximum cap is Rs.200.00 cr.
5. Type of facility sanctioned under the scheme and what is the loan tenor?
CECL will be made available as Working Capital (Demand Loan). Tenor of the loan: 24 months including 6 months moratorium.
6. What is the validity period of the scheme?
The scheme will be in force up to 30.06.2020. (Drawdown will be permitted up to 31.07.2020 either in single tranche or maximum of three tranches).
7. How the loan can be repaid?
Loan is to be repaid in 18 equal monthly installments after a moratorium of 6 months from date of disbursement. Interest to be serviced as and when applied.
8. What is the applicable margin?
Nil. The CECL limit should be covered by the market value of the stocks and receivables as per the stock statement. The existing limits, however, need to be covered by the advance value of securities
9. What is the applicable rate of interest?
1-year MCLR to be reset after one year, Current 1 year MCLR is 7.40%.
10. Whether I need to offer any new collateral security?
No. Only extension of charge on primary and or collateral securities in addition to personal and corporate guarantee of Promoters year / Concern/ group as applicable. Wherever CGTMSE cover is available/eligible, it can be availed.
11. Do I need to pay any processing fee?
No. Processing fee is waived.
12. What are the assessment and appraisal criteria?
Limits will be assessed over and above the Assessed Bank Finance.
13. Whether our existing working capital limits are eligible for enhancement in terms of providing additional working capital facilities?
Yes. For genuine business requirements, reassessment of existing working capital limits may be done with reduced margin & revised holding period for stocks and enhanced cover period for receivables. However, the existing ad-hoc limits will be subsumed into the revised working capital assessed.
14. How can I apply for a loan?
Submit simple application to your home branch either in hard copy or via email.