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Eligible MLIs

MSMEs are the backbone of Indian economy. Over 63 million MSMEs contribute around 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for around 111 million people. Government and Reserve Bank of India have announced various measures to alleviate the difficulties being faced by MSMEs on account of Covid-19 pandemic. RBI has since extended the scope of ongoing one-time restructuring of MSME advances to support the viable MSME entities undergoing Covid-19 related stress. This restructuring scheme will remain open till March 31, 2021.

Eligible Borrower

Asset Restructuring Module for MSMEs (ARM-MSME): While the Banks have already rolled out the restructuring scheme, MSMEs find it difficult to prepare the restructuring proposals on their own. SIDBI and ISARC have developed a DIY (Do-It-Yourself) web-module, viz, ARM-MSME. With the help of this module, MSMEs will be able to prepare restructuring proposals by keying in only the most essential data of their past financials, future plans/ projections and restructuring requirement. Reports can be generated for submission to Bank online through email or in hard copies along with other prescribed documents.

Credit Facility

Small Industries Development Bank of India (SIDBI) set up in 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.

Guarantee Coverage

India SME Asset Reconstruction Company Limited (ISARC) established by SIDBI along with other Public Sector Banks/ FIs, is the country’s first Asset Reconstruction Company (ARC) with an MSME focus. ISARC endeavors to unlock the idle NPA assets of MSMEs for productive purposes, thereby facilitating recycling of funds which, in turn, enhances flow of credit from the banking sector to the MSMEs.