Timely Working Capital Assistance to Revitalise Industries in times of Corona Crisis (TWARIT)

Small Industries and Development Bank of India has launched a new scheme known as Timely Working Capital Assistance to Revitalise Industries in times of Corona Crisis (TWARIT) for supporting the MSME sector to continue functioning during the covid situation. 

The objective of the TWARIT Scheme 

The main objective of the Timely Working Capital Assistance to Revitalise Industries in times of Corona Crisis (TWARIT) is to provide relief to the MSME units whose operations are affected by COVID – 19. 

Eligibility criteria for TWARIT Scheme 

• To get the benefits of the TWARIT Scheme, Micro Small Medium Enterprises (MSMEs) should be registered under Goods and Services Tax (GST).
• The business turnover for the financial year 2019 – 20 must be Rs. 25 crores to avail the benefits.
• The scheme is valid for those customers who have existing books of the bank. 
• To avail the TWARIT loan scheme, the applicant accounts must be less than or equal to 2 months past due as on 29th February 2020.

Eligible enterprises of the TWARIT Scheme 

Business entities that are eligible under the Timely Working Capital Assistance to Revitalise Industries in times of Corona Crisis (TWARIT) scheme are given below: - 

• Proprietorships
• Partnerships
• Registered Companies
• Trusts and Limited Liability Partnerships (LLPs)

The benefits of Timely Working Capital Assistance to Revitalise Industries in times of Corona Crisis (TWARIT) scheme 

Listed below are the benefits of TWARIT Scheme: -  

• The borrower does not need to pay a penalty for the prepayment TWARIT Scheme.
• To acquire the loan under TWARIT Scheme, the units of MSMEs do not require to pay the amount as a contribution of promoters.
• There is no processing fee to avail TWARIT scheme loan under SIDBI.
• Under this scheme, the borrower can avail the repayment facility of a loan for 4 years with a moratorium period of up to 12 months.

 Also read: - SIDBI Schemes - Features, Interest Rate, Steps to Apply for Loan

Quantum of Assistance 

• All entities that are eligible for the TWARIT scheme will get 20% of the outstanding loan with Small Institute and Development Bank of India up to Rs. 25 crores as on 29th February 2020 with the exposure of Rs. 5 crores or as modified by the NCGTC (National Credit Guarantee Trustee Company)/Indian government.
• Non-fund-based and Off-balance sheets are not involved under the TWARIT Scheme.
• The outstanding amount includes on-balance sheet exposure like the outstanding amount of Working capital limit, Working capital term loan (WCTL), and term loans.

The Interest rate of the TWARIT Scheme 

• The rate of interest of the TWARIT scheme for the loan is @8.25% per annum.

Tenure details of the TWARIT Scheme 

• The TWARIT Scheme offers a loan tenure of up to 4 years with a moratorium period of 1 year.

Security details under TWARIT Scheme 

• SIDBI offers the extension of charges on collateral security or primary security under this scheme.
• No other collateral will be required for the additional funding under this scheme.

Processing fee  

• The processing fee will not be charged by the Small Industries and Development Bank of India since additional credit under this scheme is given to existing borrowers.

The application procedure for TWARIT Scheme  

• The eligible micro enterprises require to access the online application page of SIDBI to apply for the scheme.
• The registration page will be displayed on their screen, click on the registration tab to register as a new user in SIDBI to get a loan.
• The entities are required to provide information of enterprise phone number, name, total loan requirements, and email address.
• After the completion of registration, the password and username will be given to the entity.
• Then, log in to the portal and fill in a one-page application form.
• After the verification of KYC documents and due diligence, the loan amount will be credited to their respective account within 48 hours.

Therefore, knowing about the best deals for TWARIT Scheme. Apply with financeseva. 

Also read: - SIDBI THEMATIC ASSISTANCE FOR PURCHASE OF CAPITAL ASSETS IN NEW ENTERPRISES (STHAPAN)