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

Small Industries and Development Bank of India has launched a new scheme known as SIDBI Assistance to Re-Energize Capital Investment by SMEs (ARISE). 

It provides financial assistance to the borrowers of Small Industries and Development Bank of India to buy land or equipment for the expansion of enterprises.  

The objective of ARISE Scheme 

• The main objective of the ARISE Scheme is to provide support to the new and existing SMEs for obtaining growth opportunities.
• Financial assistance will be given to the brownfield or existing entities for undertaking modernization, expansion, and capital expenditure in the line of a business.

The key features of the SIDBI Assistance to Re-Energize Capital Investment by SMEs (ARISE) scheme 

• This scheme provides an attractive Return on Investment (ROI).
• The loan will be sanctioned quickly.
• The facility of Foreign Currency Term Loan (FCTL) and Term loan is available.

Eligibility criteria for ARISE Scheme 

The eligibility criteria for getting a loan under the ARISE scheme are as follows: - 

• Brownfield or existing entities for undertaking capital expenditure, expansion, and modernization in the line of a business.
• The contribution of promoters must be a minimum of at least 25% to get financial assistance.
• Cash profit in the previous result of audited financial is required for availing the benefits of the ARISE Scheme.
• Standard norms are applied (CMR, Due diligence, CIBIL, etc.)
• To avail the loan under this scheme, units of MSMEs should have a minimum of 2 years of operations with a sale.

Eligible enterprises for ARISE Scheme   

Entities that are eligible under SIDBI Assistance to Re-Energize Capital Investment by SMEs (ARISE) Scheme are given below: - 

• Micro, Small & Small Medium Enterprises set up units in the sectors under the production of the linked incentive scheme.
• The high growth sector, sunrise sector, and other significant sectors are eligible for the ARISE Scheme.

 Also read: - SIDBI Schemes - Features, Interest Rate, Steps to Apply for Loan

Quantum of Assistance 

Under the SIDBI Assistance to Re-Energize Capital Investment by SMEs (ARISE) Scheme,  

• Up to Rs. 3 crores are offered to the borrowers that are based on the fixed assets for a maximum of 25%.
• Financial assistance is given in the form of a term loan.

The interest rate of ARISE Scheme 

• The rate of interest under the SIDBI Assistance to Re-Energize Capital Investment by SMEs (ARISE) Scheme is from @5.50% to @6.80% per annum for the 1st year with an application as per the internal rating.

Repayment period of SIDBI Assistance to Re-Energize Capital Investment by SMEs (ARISE) scheme 

• SIDBI provides a repayment schedule of up to 7 years along with a moratorium period of 2 years.

Documents required under ARISE Scheme  

The documents required for the ARISE Scheme are listed below: 

• Proforma invoice of quotation (machinery).
• Copy of trust deed, MOA (Memorandum of Association), and Partnership deed.
• Documents of identity proof.
• Financial statements for the previous 3 years.
• KYC documents as per the guidelines of banks.
• Statement of immovable directors and promotors.
• Copy of lease agreement and rent.
• Documents of existing power load.
• Documents of address proof.
• Copy of registration certificate of GST for the registered units.
• Copy of UAM (Udyog Aadhar Memorandum)
• Copy of consent to establish from Process Control Book.
• Application filed for the requirement of additional power load.
• Copy of sanction letters from other banks for the current banking agreement.
• Information of loans provided by other banks, financial institutions, and NBFCs (Non-Banking Financial Companies) that are currently outstanding.

The application procedure for SIDBI Scheme 

• The eligible micro enterprises require to access the online application page of SIDBI to apply for the scheme.
• The registration page will be displayed on their screen, click on the registration tab to register as a new user in SIDBI to get a loan.
• The entities are required to provide information of enterprise phone number, name, total loan requirements, and email address.
• After the completion of registration, the password and username will be given to the entity.
• Then, log in to the portal and fill in a one-page application form.
• After the verification of KYC documents and due diligence, the loan amount will be credited to their respective account within 48 hours.

Therefore, knowing about the best deals for ARISE Scheme. Apply with financeseva. 

 Also read: - Timely Working Capital Assistance to Revitalise Industries in times of Corona Crisis (TWARIT)