The Ministry of Micro, Medium, and Small Businesses (MSME) has been affected by the unusual situation caused by COVID-19 and the resulting lockdown. The Small Industries Development Bank of India (SIDBI) has launched the TWARIT (Timely Working Capital Assistance to Revitalize Industries in Times of Corona Crisis) Scheme to help MSMEs stay afloat during the crisis. The SIDBI intends to provide relaxation to the MSME sector as part of this Program by offering 20percent of overall outstanding loans up to INR 25 crore. The TWARIT Scheme of SIDBI is defined in detail in this article.

Timely Working Capital Assistance to Revitalize Industries in Times Of Corona Crisis, as previously mentioned, is a unique solution to the extraordinary situation created by the COVID-19 pandemic. The Timely Working Capital Assistance to Revitalize Industries in the Times of Corona Crisis Scheme aims to provide much-needed assistance to MSME units whose operations have been harmed by COVID 19.


  • Panhandler accounts must be less than or equivalent to 2 months past due as of February 29, 2020, to qualify for the TWARIT scheme.
  • To be eligible for the Program, all active applicant accounts, including those under Credit Delivery Arrangement, must total ₹25 crores in outstanding credit facilities as of 29-Feb-2020.
  • Existing clients on the Bank’s records are eligible for the TWARIT Scheme.
  • To benefit from the TWARIT scheme, the MSME must be GST certified in all instances; however, this requirement does not apply to organizations that are not required to register for GST.
  • The entity’s turnover must be at least ₹25 crores to qualify for the payout in the FY 2019-20.
  • The qualifying individual will be given an opt-out option under the TWARIT program, allowing them to choose whether they are interested or not in choosing the program.

The Scheme will be available to all applicants who have not been listed as Special Mention Accounts (SMA 2) or Search Queries Non-Performing Asset (NPA) by several of the Member Lending Institutions (MLIs) as of February 29, 2020.


  • The applicant would have a four-year loan repayment period with a one-year moratorium under the TWARIT Scheme.
  • The TWARIT pre-payment scheme does not include any penalties for the customers.
  • MSME units do not have to pay any organizer’s contribution to secure a loan under this SIDBI Program.
  • There is no cost to apply for a loan through the TWARIT program.


  • Under the TWARIT program, SIDBI makes the addition of charges on the Primary Safety or Conditional Safety.
  • In case of cash flows and safety, the additional Working Capital Term Loan facility issued under TWARIT would be placed second behind current credit facilities, with a fee on assets funded under the TWARIT Scheme to be generated within three months of loan disbursement.
  • Under this SIDBI Program, no extra collateral would be needed for additional financing.


8.25 percent per annum standard rate with yearly reset.


The loan scheme has a four years term.


SIDBI will not charge an extra charge because additional credit under TWARIT is given to current customers, as previously stated.


The TWARIT scheme includes an automatic pre-approval process, eliminating the need for the borrower to notify the SIDBI for a loan. SIDBI will send qualifying applicants an offer letter for a preapproved loan, which they may approve or disapprove. If the MSME approves the bid, the applicant must complete the required paperwork.

A different account for the loan will be there for the applicant as part of this Program for the possibility of raising additional credit. This new account would be different from the consumer’s current loan account.

M/s Dinesh J. Shah & Associates is a CA firm in the field of Project Finance and Government Subsidy, Taxation, GST, Audit for more than 20 years. If you need further clarification/query, you can contact us on 9825373707 or mail at or