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ARISE Loan Scheme

  • 01-Feb-2024

SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE) 

ARISE Scheme was launched to facilitate the flow of credit to small and medium-sized enterprises (SMEs) to develop their existing units. The purpose of this program is to offer financial assistance to borrowers for the purchase of equipment or land to expand their enterprises.

The Objective of ARISE Scheme

  • The ARISE scheme aims to support new and existing SMEs in purchasing growth opportunities by re-energizing capital investments.
  • Financial assistance will be provided to Brownfield or existing units for the expansion, modernization, or capital expenditure within the same line of business.
  • Loans can also be obtained for rooftop solar projects under this scheme.

Eligibility Criteria

  • Under this scheme, brownfield projects that have been in business for at least 2 years are eligible.
  • The company should have made a cash profit in the last financial year.
  • The company should have a good credit score. Furthermore, there should not have been any defaults in the past.
  • The promoter's contribution should be a minimum of 25% to avail the loan.

Loan Amount

The maximum loan available in this scheme is up to Rs 50 crore, subject to a maximum of 80% of the project cost.

Interest Rate

The interest rate for this scheme starts at 7.25% per annum.

Repayment Period

SIDBI offers a repayment period of up to 7 years, including a moratorium period of up to 2 years.

Documents Required

  • Machinery (quotation)
  • KYC documents, as per the bank's guidelines
  • Statement of immovable properties owned by the promoter/directors
  • Copy of Memorandum of Association/Partnership Deed/Trust Deed
  • Document showing existing power load
  • Application filed for additional power load, if necessary
  • Copy of rental/lease agreement
  • Details of loans obtained from other banks/FIs/NBFCs that are currently outstanding
  • Copy of Udyog Aadhar Memorandum
  • Copy of GST Registration Certificate
  • Proof of Identity Document
  • Document of Address Proof

Note: Borrowers who have taken a loan from another bank can still apply for this scheme. If their project is feasible.

Application Procedure

Eligible MSMEs can visit the SIDBI website and proceed to the online application page to apply for the scheme.

The Online Registration Login page tab will appear. The applicant will click on it to register as a new user. Applicants must provide the enterprise name, phone number, email, and proposed total loan requirement. After successful registration, a username and password will be provided.

After logging into the portal, the applicant must complete the one-page application and built-in checklist, and upload all the required documents.

Borrowers can contact SIDBI by visiting the nearest branch. Sidbi will approve the loan application after conducting official due diligence.

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