The SHWAS and AROG loan schemes are launched by the Small Industrial Development Bank of India (SIDBI). SIDBI bank has come up with a loan opportunity to help MSMEs that are providing services related to COVID-19.
The main motive of the SHWAS and AROG loan schemes is to provide financial support to the Healthcare sector which is involved in the manufacturing of oxygen supplies and other products to fight against the Covid-19 and to encourage MSMEs who are helping others fight the pandemic.
So, SIDBI provides this loan with a very low-interest rate of 4.5% to 5% within 48 hours to the MSMEs in need, making it easier for them to continue the tasks of helping people in the pandemic. And under the SHWAS and AROG scheme, a loan of up to 2 crore rupees can be provided to MSMEs that are eligible to get this loan.
“The endeavour is to provide credit facilities to deserving MSMEs that have risen to the occasion in helping the citizens in this hour of need by keeping their activities operational and providing healthcare at all levels”, said IDBI Chairman S Raman.
Now let us look at the application process to avail of the loan from SHWAS and AROG scheme.
The Application Process for SHWAS and AROG Loan
The application process to avail of the SHWAS and AROG loan is really simple and requires very minimal procedure and steps.
- The SIDBI bank offers a one-page application form and a checklist for MSMEs in the healthcare sector to fight the War against Second Wave of Covid-19. And the MSMEs that are eligible to avail of this loan can access the application form online.
- To avail of this loan, very few documents are required which include an Aadhar card, PAN card, your bank statement and a copy of ITR.
- Once you fill the application form, you have to submit all the necessary documents mentioned above. And if you are eligible after the standard KYC checks and due diligence, the loan amount will be credited to your account within the next 48 hours.
- You can purchase an invoice to make direct payment to the supplier for the purchase of equipment or machinery and raw materials.
- And there is no processing fee for both SHWAS and AROG loan schemes.
Now, let us look at the benefits you will be getting from the SHWAS and AROG schemes.
Benefits of the SHWAS and AROG Loan Schemes
Some key benefits of the SHWAS and AROG loan schemes include:
- Less interest rate. SHWAS and AROG loan schemes can be availed by MSMEs at a very less interest rate of 4.5% to 6%
- There is no collateral fee. SHWAS and AROG loan schemes have been launched to provide immediate loan assistance for MSMEs.
- A credit guarantee option is also available. The charges will be borne by SIDBI.
- SHWAS and AROG loans offer 100 % funding as well.
- The most important and beneficial feature of SHWAS and AROG loan schemes is that any MSME that is eligible and has provided all the necessary information will get a loan within the next 48 hours.
Eligibility Criteria for SHWAS and AROG Loan
SHWAS Loan
The SHWAS loan is available for MSMEs that manufacture the below-mentioned products. Under the SHWAS scheme, the MSMEs involved in the manufacturing of –
- Oxygen cylinders
- Liquid oxygen
- Oxygen concentrators
- Oxy-generators
- Medicines and MSMEs that provide other important services like,
- Transportation
- Accommodation and
- Storage can apply for this loan.
AROG Loan
Under the scheme the MSMEs that manufacture products related to the Covid-19 such as –
- Masks
- Sanitisers
- Bodysuit
- Suction tube
- ICU beds
- Cardiac monitors
- Syringe pumps
- Portable X-ray machines
- Endotracheal tubes
- Ventilators
- PPEs and
- Oxygen concentrators etc are eligible to avail of the AROG loan
For New and Existing Customers
- If you are a new customer who wishes to avail of the SHWAS and AROG loan schemes then your business should be in cash profit in the last two years. Your company must have a satisfactory credit track record with an existing bank.
- If you are an existing customer and if you are willing to get this loan then the cash profit in the last audited balance sheet of your company should be submitted.
The SIDBI bank has come up with these two schemes under the guidance of the Government of India which facilitates the funding for production related to above- mentioned services. The repayment period of the term loan is up to 60 months. The working capital term loan is up to 18 months and the Moratorium is up to 12 months.
Conclusion
To solve the sudden rise in the Covid cases and to provide more opportunities to healthcare MSMEs these schemes have been introduced. And this is all about the SHWAS and AROG loan schemes. Its eligibility criteria, the application process and benefits for MSMEs. Make sure you understand each aspect of the scheme and its eligibility requirements before applying for it.
