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Growth Capital & Equity Assistance (GEMS)

Growth Capital & Equity Assistance (GEMS). P.K. Nath, DGM, SIDBI, Nagpur. OBJECTIVE. For bridging the gap in Means of Finance for expansion / modernization / new business / diversification by entrepreneurs with established track record .

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Growth Capital & Equity Assistance (GEMS)

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  1. Growth Capital & Equity Assistance (GEMS) P.K. Nath, DGM, SIDBI, Nagpur

  2. OBJECTIVE • For bridging the gap in Means of Finance for expansion / modernization / new business / diversification by entrepreneurs with established track record. • Intangible investments viz., product development, marketing related expenditure, R&D, quality control, energy efficiency equipment, etc. • Working Capital / MMWC. • Any other bonafide expenditure required for growth of the business.

  3. ELIGIBLE BORROWERS • Existing Customers: (i) Satisfactory repayment track record (ii) Along with term loan assistance and (iii) Customers assisted under other schems with atleast 2 years of satisfactory conduct . • New Customer: 3 years profitability and 2 year satisfactory banking track record. • Exceptions:(i) Customers assisted by PE / VC / Angel funds (ii) Units with unique / novel business model with good cash generation capabilities and / or where equity interest could be reasonably expected in the medium term, (iii) Greenfield units where Risk Capital is being given alongwith Term Loan assistance where Risk Capital assistance is less than 50% of TL assistance.

  4. SUB DEBT NORMS

  5. NORMS continue…

  6. SIMPLER DISPENSATION • Simpler Dispensation mode, faster process for providing Sub Debt / OCSD UPTO Rs.100 lakh only to SIDBI’s existing well performing customers. • at least 2 years of satisfactory payment track record with SIDBI (including one full year of principal repayments) with SME3/ SER3/ LSME3/ CAA/ RAA (rating not more than 6 months old). OR • at least 4 years of satisfactory track record with SIDBI (including 2 full years of principal repayments) with SME4/ SER4/ LSME 4/ CA/ RA rated customers (rating not more than 6 months old). • Financial position is satisfactory with profits during the last 3 years. • The borrower and associate concerns are not in default to any bank and FI.

  7. Thank You

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