Retail Loan Scheme for Trade Finance (RLS)

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What is the scheme?

SIDBI with intent to assist Retail Traders and wholesaler for their business expansion made Retail Loan Scheme for Trade Finance (RLS) for the acquisition of business premises, godown, shop, office premises, repair, furnishing, renovation of existing business premises, purchase of furniture & fixtures, equipment’s, tools, computers, UPS, DG set, etc. and WC facility.

How much funding can a unit expect under the Scheme?

A unit can borrow under the Term Loan and Working Capital facility. The total loan amount is offered between ₹ 10 Lakh and ₹ 50 Lakhs to Retail Traders & Dealers and ₹ 100 Lakh to Whole sellers.

Which units are eligible under this scheme?

MSE Retail & Wholesale Traders with a minimum of 3 years in operations with stable sales & cash profits in the past 3 years are eligible under this scheme.

Units having a good repayment history of loan for the last 12 months with any Bank, NBFC, or financial institution is an added criterion. Every borrower needs to satisfy the basic condition of having one of the supplier with at least ₹ 1,000 Crs annual turnover.

What are the loan tenure options?

Loan Tenure is dependent on Risk Profile and Project Implementation Schedule and cash flow of the unit. SIDBI offers a tenure up to 5 years including moratorium up to 3 months to eligible units.

What kind of collateral and margin is required?

It is expected to cover the loan amount with 1.25 times of collateral. The Promoter’s margin is at 25% in the form of FD.