E-Circular dt December 22, 2008
Need money ?
Take Loan of
Rs. 50 Lakhs, without any Collateral, from FSIA help-desk*
|
Rajive
Chawla President,
FSIA |
|
Sangeet
Kr Gupta Hon.
Consultant, FSIA |
“Collateral Free Loans” – arranged by FSIA à in Times of “Recession”, à
for your benefit
ü
Do you Purchase small
Tools, Dies and Moulds ? Testing Equipments ? Do you take loan against all of
these ?
ü
Do you always
purchase Invertor, Generator, Batteries on Loan ?
ü
Do you always take
Loan for small items like Computers, Printers, ….
ü
Have you been alloted
some HSIIDC Flat recently ? Loan tie up to make ?
ü
Planning to Applying
for the IMT Faridabad plots… Bank not ready to finance the application money ?
ü
Do you need Emergency
Working Capital ?
ü
Are you Planning to
follow up with Private Banks for an Unsecured Loan ?
ü
Do Unsecured Loans
from Pvt Banks carry high rate of interest (18%
to 24%)
The Core idea is
We all purchase a lot of small value Fixed Assets. And usually we don’t
take loan for those Assets .
The Core LOSS to your business is
The Loss is that you block your working capital funds ( money in hand)
into fixed assets. Ideally Fixed Assets must come from Long Term funds. Here you
don’t, so, you lose liquidity.
Meltdown
in the World Economy
The world economy is undergoing a “Recession”, “Meltdown”,
“Depression”, for many sectors , like Auto, Textile exports etc.
Indian Businessmen are facing the heat too.
Funds are getting scarce
Private Banks are getting giddy, on giving loans.
Customers are delaying payments .
è
Liquidity Crunch is there.
A
Reality, most of us are facing.
FSIA in the service of the Businesses
For
the first Time in India
SIDBI
has selected an Industrial Association as a Front-Desk, for selection of
businesses for grant of quick Collateral Free Loans.
|
For
the first Time in India, a Large Bank(S.I.D.B.I.) has selected an
Industrial Association(FSIA)
as a Front-Desk, for selection
of businesses for Grant
of quick Collateral Free Loans. |
|
FSIA has entered into an MOU with the SIDBI for grant of quick Collateral
Free Loans.
A Quick look at the Features of this Quick
“SIDBI-FSIA-Loan”
ü
There is no Collateral.
o
The Strength for proposal shall be your Balance Sheet
+ FSIA recommendation.
o
And moral pressure for Timely repayment is also that
on the FSIA.
ü
Nodal Bank is SIDBI and Front Desk
is FSIA office
o
That is the faith of SIDBI on your association
ü
Moratorium is possible
o
Usually, there is no moratorium on EMI-based unsecured
Loans.
o
Here you can take upto 3 to 6 months ( on merits )
ü
Ballooning option
o
Usually EMI’s are Equal Monthly instalments during
the tenure
o
Here you can plan your own. You may repay Rs. 20K p.m.
in First year, Rs. 30K p.m. in second year, and Rs. 50K p.m in 5th
year.
ü
Rate of Interest
o
Rate of Intt on unsecured Pvt Bank Loans is about
18%-24%.
o
Here it will be SIDBI’s PLR , minus 0.5%.
o
Just an Example, the current PLR of ICICI Bank is
17.5%
o
And the Current PLR of SIDBI is just 12.5%
o
And in this scheme, you will get at 12%
ü
Rate of interest shall be Floating
o
We at FSIA editorial board, feel that the Rate of
interests may go down in near future.
o
Our President, Mr Rajive Chawla was in Hong-Kong Last
week, attending the World SME Conference, as part of Indian delegation.
o
The News he has brought on Interest front is that, in
USA, the rate of interest is currently nearly ZERO %. In Japan, also around ZERO
%. In Europe, between 1-2%. So, Indian Banks cannot and will not continue at 12
to 15% Rate of interest.
o
So, FSIA has organized Floating interest for this
scheme.
o
To
your benefit.
ü
NOC of the Existing Bank ?
o
No, it is not required.
o
SIDBI will just intimate the existing banker, if any.
o
No permission is required .
ü
Charge
registration in the ROC ?
o
Yes, it will be done.
o
But no NOC will be asked for from the existing banker.
ü
Who will be carrying out financial
due diligence and preliminary scrutiny of
the loan eligibility. ? -- FSIA (
However SIDBI ‘s decision shall be final and binding)
ü
Disbursement Request à
via the FSIA help-desk
ü
Who is eligible ? à
o
Micro, Small & medium enterprises who (or their
Associate concern or any unit in the group or under same management) are members
of FSIA for atleast past one year as on date of application.
o
in existence for a minimum period of 3 years.
o
having Net Profit for last 2 years
o
having Minimum Credit Rating as per SIDBI’s norms.
o
having Maximum limit : not more than 15% of the
turnover in case of manufacturing / service sector units and 35% of turnover in
case of units engaged only in job work subject to a maximum of Rs. 50 lakh.
o
having No default/ overdues.and have good credit track
record
o
not in RBI/CIBIL defaulter/ caution list
o
KYC norms compliant
o
Having No statutory dues. Cases under protest/
litigation shall be considered on merit
o
having maximum overall DER (including proposed Loan)
of 2.5 : 1 for the concern
o
having factory in its name or the promoter should have
residence in his own or spouse name in NCR.
o
FSIA Notes
§
The above ready reference is quite transparent
§
If you meet the above, the loan would be transparently
available
§
If you don’t, you might not.
§
Having a Good Balance Sheet is a must, as seen above.
§
You may take the counsel of FSIA help desk for your
eligibility review before you file the case.
ü
What are the Other Important
Features of this Scheme
Details
are as under :
|
Eligible
assets for financing |
Ÿ
Capital
assets mainly plant, machinery and other
equipments bought by the MSMEs. The cost inclusive of all taxes. Ÿ
It
may include Delivery vehicles etc required for business Ÿ
HSIIDC
Flatted Sheds , or such others Fixed Assets |
|
Individual
limit |
Ÿ
Upto
Rs 50 lakh
( Rupees Fifty Lakhs only) |
|
Tenure
of loans |
·
Upto
60(sixty) months from disbursement
based on revenue projections of the MSME. The repayment schedule
could be on EMI basis and staggered/ ballooned to match the projected
cash flow of the MSME with three months moratorium for loan. ·
Overall tenure for the EMI’s of future tranches,
shall remain within the sanctioned tenure |
|
Security
from borrowers |
Ÿ
1st
charge on assets financed.
Ÿ
Personal
guarantee of all the promoters. Ÿ
PDCs
from borrowers |
|
Sanction
process |
Ÿ
MSMEs
would submit application forms (in CART format) through FSIA along with
all documents as per SIDBI check list. Ÿ
FSIA
shall forward the same to SIBDI along with the Forwarding letter,
document checklist, and eligibility complaince. Ÿ
SIDBI
may seek additional information as may be required from the units either
directly or through the FSIA Ÿ
SIDBI
official may visit the units premises before sanction of assistance FSIA
would facilitate such visits and coordinate them Ÿ
A
limit based on internal credit criterion of SIDBI would be set on each
member applicant MSME Ÿ
The
sanction would be communicated to the borrowers and a copy of the
sanction note would be provided to the FSIA |
|
Disbursement
Amount |
Ÿ
SIDBI’s
disbursement will be released in the name of the asset supplier,
wherever possible. Otherwise it would be disbursed in their WC/Current
account of the units under advise to their bankers. |
- Terms and conditions apply
- All loans at sole discretion of SIDBI
- Available only for FSIA Members
Some
Quick Questions & Answers
ü
When
is this scheme starting ? = Already Started . Contact us immediately.
ü
Whom
to Contact ?
= SIDBI-Faridabad, or FSIA office
ü
What if I am not a FSIA member ? = No problems, Join
us. New Members are welcome.
ü
Special offer = Indeed à
Very Special Offer: à
Loans also available on eligible assets, Machines, Capital Equipment etc.
purchased during this financial year i.e., on or after 01.04.2008
ü
Repayment by =
PDC Cheques .
ü
Any Subsidy ? à
Yes. Credit Linked Capital Subsidy (15% Subsidy) available wherever applicable.
ü
When should I come to FSIA ? à
Immediately, ( Earlier the better ) è
You may submit documents & take sanction letter valid for upto 6 months for
immediate disbursal whenever the need arises.
( infact take disbursement for the assets purchased after 1-4-2008, now )
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Mr Kaul, from SIDBI, Mumbai, and Mr Rajiv Chawla, exchanging the signed
MOU’s |
Mr Sanjay Gulati, Mentor-and CMD, Omega Cranes Group, uncorking the
Champagne Bottle, brought by Mr Yogi Nagpal of Light Lift Engineers |
Final Conclusion for the SME members
Friends,
As
Mr Kaul, the CGM of SIDBI, Mumbai said that day,
“We start, by doing what is necessary,
…..
Then, we start doing, what is possible
…..
and Suddenly,
…..We are doing the IMPOSSIBLE….”
SIDBI-FSIA
have done just that …… from merely voicing the concern of “Recession”,
and credit Sqeeze……… This joint venture ”I-am-SME-of-India has become an
Agency which can Think-Decide-Recommend-Help Award-and finally help-Disburse
Funds to the SME businesses in India.
Congratulations.
To all.
Now,
if you need FSIA services in this regard. Please contact the FSIA secretariat.
We are in your Service.
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Congratulations Friends, that is a nice Chrismas Gift from the SIDBI to
the FSIA members … what a way to celebrate the Chrismas and a Happy New Year 2009……
Quick Loan to Ease Liquidity. |
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For
queries, suggestions and feedback , you can e-mail us at :
|
|
Sangeet
Kumar Gupta FCA,
ICWA, PGDMM, B.Com(Hons) Honorary
Consultant, Faridabad
Small Industries Association 93126-08426 groupmlg@eth.net Camp
Off : 63, Sector-15, Faridabad FSIA
Off : FSIA Park, Opp. Plot No.23, Sector- 24,Faridabad-
121005 |
|
Subscription
Please
send your details, and request by e-mail to groupmlg@eth.net,
or FSIA4u@rediffmail.com, or Rajivchawlaindia@yahoo.com,
My personal email id is skgupta@mlginfotech.com
for
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Notes
& disclaimer
For
private circulation. Intended for recipient only. This is only for personal
information of the members. Based
on information & interpretations available as on Monday, December 22, 2008.
Please contact your Consultant / Chartered Accountant / counsel for his
final opinion, if deemed fit.
For
Back issues, click on http://www.finsys.co.in/Ecirculars.htm
Advt.
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Graph’s
of Collections from Customers And Payments
to Vendors |
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Using
your Finsys ERP, you can see the GAP between Your Receipts and Your
Payments See Your
Cash Flows ….. And
if required Take
this SIBDI-FSIA Loan |
For
information about how to use the Finsys ERP, access the manuals on www.finsys.co.in
Home
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