MSME Receivable Finance Scheme            Direct Credit Scheme


To overcome cash flow problems faced by MSMEs.

Receivable Finance Scheme is ideal for MSMEs where business receivables are high and the need for funds to their enterprises is crucial. It gives the power to raise finance against the bills / invoices arising out of components / parts / sub-assemblies / accessories and provision of services by MSMEs to large / medium enterprises.

Purchasers should be
> A corporate entity with good track record and in commercial production for 5 years.
> Should not be in arrears to banks / financial institutions / statutory authorities.

Sellers should be
> Manufacturer / Service provider in MSME sector.
> In existence for at least 2 years and should have made profits.
> Regular in repayment of its dues and not be defaulter to bank / financial institutions.

Limits are sanctioned by SHIMATO to well established industrial units using components / parts / sub-assemblies / accessories / services, manufactured / provided by SSI / SME / eligible Service Sector units. Seller-wise limits would also be considered for well-run MSMEs.


> Setting up of a new Micro/SSI unit or Medium scale enterprise / Service sector unit.
> Expansion / diversification / modernization / technology upgradation / quality certification.
> Acquisition of additional machinery / equipment.
> Meeting working capital requirements including gap in MPBF or margin on selective basis.
> Undertaking various marketing related activities.
> Any other activity as per guidelines (having linkages and benefits accruing to SME sector).
> Equity Support
> Non-Fund based support.
> Refinance to primary lending institutions (PLIs), viz., Banks and SFCs/SIDCs.

Minimum Loan Amount
> Generally Rs. 25 lakh
> In respect of well-run existing MSMEs, the minimum loan could be Rs. 10 lakh.

Desirable Norms and Parameters
Debt Equity Ratio         Generally not exceeding 2:1 for the company as a

Minimum Promotor's     For new projects - 33%

Contribution                 A lower Contribution (upto 25%) could be accepted in
                                  respect of existing well-performing companies / firms.

                                  For others-25% (minimum).

                                  Asset Coverage Ratio minimum 1.3 for existing units &
                                  minimum 1.4 for new units.

Period of loan / limit     Minimum 6 months for term loans (moratorium period
                                  shall be need based and generally not exceed 18

Upfront fee /                Payable at the time of issue of LOI as may be stipulated
Processing Fee