Soft\nLoan \u2013 In the Nature of the Quasi Amount<\/strong><\/p>\n\n\n\nThe\nloan amount particulars under the SMILE are given below: <\/p>\n\n\n\n
10 per\ncent of the project valuation is subject to the maximum of Rs 20 lacs, and 15\nper cent of the project valuation is subject to a max. of Rs 30 lacs for\nentities promoted by ST, SC, Individual with disability and Women (controlling\nstake of at least 51%)<\/p>\n\n\n\n
Upfront\nFee<\/strong><\/p>\n\n\n\nThe\neligible MSME sectors are supposed to submit 0.50% of the loan amount as a\nsecurity\/upfront charge under the SMILE scheme. <\/p>\n\n\n\n
Rate of\nInterest<\/strong><\/p>\n\n\n\n- For the\nfirst three years: 9.15 per cent to 9.35 per cent pa. <\/li>
- From 4th year onwards: 11.70 per cent \u2013 12.70\nper cent per annum based on the PLR rating of the bank (rate is not necessarily\nfixed)<\/li><\/ul>\n\n\n\n
Repayment\nPeriod<\/strong><\/p>\n\n\n\nThe\nrepayment timeline for the soft loans under the SMILE scheme is up to 10 years\nwhich includes a moratorium of 3 years as well. <\/p>\n\n\n\n
Security<\/strong><\/p>\n\n\n\n- Residual\ncharge over the entire assets<\/li>
- Personal guarantee of the Promoter(s)<\/li><\/ul>\n\n\n\n
Prepayment<\/strong><\/p>\n\n\n\nNo\npremium shall be imposed under the SMILE scheme. <\/p>\n\n\n\n
Other Details<\/strong><\/p>\n\n\n\nUpon\nexpiration of 3 years from the date of issuance, the outstanding soft loans,\ntogether with any due amount thereon, shall be transformed into a secured term\nloan, and the complete loan amount shall carry an applicable interest rate in\naccordance with the internal rating of the borrower.<\/p>\n\n\n\n
Term\nLoan \u2013 On Relatively Soft Terms<\/strong><\/p>\n\n\n\nAmount<\/strong><\/p>\n\n\n\nThe\nloan amount details the SMILE scheme given below:<\/p>\n\n\n\n
- Minimum\nfifty lacs rupees for new enterprises<\/li>
- Minimum twenty lacs rupees for existing\nenterprises<\/li><\/ul>\n\n\n\n
Upfront\nFee<\/strong><\/p>\n\n\n\nThe eligible\nMSME sectors are supposed to submit 0.50% of the loan amount as a\nsecurity\/upfront charge under the SMILE scheme. <\/p>\n\n\n\n
Rate Of\nInterest<\/strong><\/p>\n\n\n\n- For the\nfirst three years: 9.45 per cent to 9.95 per cent pa. <\/li>
- From 4th year onwards: 11.70 per cent \u2013 12.70\nper cent per annum based on the PLR rating of the bank (rate is not necessarily\nfixed)<\/li><\/ul>\n\n\n\n
Term\nLoan<\/strong><\/p>\n\n\n\nParticulars\nrelating to the term loan under the SMILE scheme are given below: <\/p>\n\n\n\n
- 75 per\ncent of project valuation upto Rs 100 lacs <\/li>
- 2\/3rd for the rest is exposed to contribution of\nthe promotions and DER provisions. <\/li><\/ul>\n\n\n\n
Promoters’\nContribution<\/strong><\/p>\n\n\n\n- At\nleast 15 per cent of the project valuation up to Rs 100 lacs<\/li>
- 20 per cent for the rest subject to DER\nprovisions<\/li><\/ul>\n\n\n\n
Repayment\nPeriod<\/strong><\/p>\n\n\n\nUp to\n10 years (including three years moratorium)<\/p>\n\n\n\n
Security\nDetails<\/strong><\/p>\n\n\n\n- A first\ncharge over all the project’s assets <\/li>
- Promoters’\nguarantees<\/li>
- Fixed asset protection at least 1.40 times\n(including the collateral security)<\/li><\/ul>\n\n\n\n
Prepayment<\/strong><\/p>\n\n\n\nNo\npremium shall be imposed for the SMILE scheme <\/p>\n\n\n\n
Fiscal\nIncentives Details<\/strong><\/p>\n\n\n\n- For the\ngeneral category, 10 per cent of the project valuation subject to a max. of\nTwenty lacs rupees is granted as the loan amount. <\/li>
- For the\nentities promoted by ST, SC, and PWD, i.e. Persons with Disabilities and women,\n15 per cent of the project valuation, subject to the max. of thirty lacs\nrupees. <\/li>
- The individual above must own a controlling\nstake (i.e. 51 per cent or higher)<\/li><\/ul>\n\n\n\n