Banks have come out with a 20% Collateral Free Loan scheme. Highlights of the same are:

1. Loan amount will be 20% of the outstanding balance as of 29th Feb 2020

2. Both Term Loan & CC shall be treated to calculate outstanding balance as of 29th Feb 2020

3. ROI will be 7.8% for SBI & 7.65% for PNB

4. No guarantee fee, no processing or documentation charges.

5. Loan can be disbursed in one go or in installments as per the borrower’s need.

6. No margin money is required from the borrower

7. No stock statement for this term loan is required to be submitted

8. Trading, as well as MSME units, are eligible

9. Borrowers with a fund-based loan amounts over 25 crores or Turnover over 100 Crores are ineligible.

10. Maximum loan can be Rs 5 crores

11. Loan to be repaid in 36 monthly installments after a moratorium period of 12 months

12. Interest is to be paid during the moratorium

Read More:- NEW BANK LOANS SCHEME FOR MSME &TRADING UNITS- hebenet