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What will be the soft loan amount?

April 26, 2017loan soft

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What will be the soft loan amount?

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A. A soft loan under this scheme can be sanctioned up to 25% of the project cost with a ceiling of Rs.2.50 lakh per project to meet the gap in equity as per prescribed Debt Equity Ratio (DER) of 1.857:1 (excluding State subsidy which may be retained for meeting working capital), after taking into account the promoters’ own contribution equivalent to 10% of the project cost. In addition, term loan may be sanctioned as per usual norms under Refinance Scheme of SIDBI.