Sanmit Infra Secures ₹2 Crore Working Capital Loan from ICICI Bank

Sanmit Infra Limited has received board approval for a new ₹2 crore working capital term loan from ICICI Bank under the ECLGS 5.0 scheme. The loan facility has a total tenure of 5 years, including a 12-month moratorium period, followed by repayment in 48 equal monthly installments.

Reader Takeaway: Secured working capital boost; operational risk on security perfection.

What just happened

Sanmit Infra's board approved the terms of a ₹2 crore working capital term loan from ICICI Bank on June 4, 2026. This loan is part of the ECLGS 5.0 scheme and is intended solely for meeting working capital requirements and creating current assets.

Why this matters

This financing helps Sanmit Infra manage its short-term operational needs and fund its current assets. The government-backed ECLGS scheme suggests favorable terms, though specific usage restrictions apply.

The backstory

Sanmit Infra Limited is involved in infrastructure development. Managing working capital effectively is crucial for timely project execution and financial stability in this sector.

What changes now

The company gains access to additional funds for its working capital needs, which could support ongoing projects and daily operations. The loan is secured by a second-ranking charge on existing securities and a charge on assets created from the loan.

Risks to watch

Investors should be aware of compliance risks. Failure to create and perfect the required security within the stipulated timelines could lead to additional interest charges. The interest rate, while capped at 9.00%, is variable and linked to the I-EBLR, meaning the cost of debt could fluctuate up to the cap.

Peer comparison

Securing working capital loans is a common practice for infrastructure companies to manage project cash flows. Terms vary based on the company's financial health, collateral, and prevailing interest rate environments.

Context metrics (time-bound)

• Loan Amount: ₹2 crore
• Lender: ICICI Bank
• Scheme: ECLGS 5.0
• Total Tenure: 5 years
• Moratorium: 12 months
• Repayment: 48 monthly installments
• Interest Cap: 9.00%

What to track next

Investors should monitor the company's adherence to security perfection timelines and its ability to manage its working capital efficiently with the newly acquired funds.