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SIDBI – Loan for Purchase of Equipment for Enterprise’s Development (SPEED)

  • 05-May-2022
SIDBI – Loan for Purchase of Equipment for Enterprise’s Development (SPEED)

The Small Industries and Development Bank of India is one of the financial institutions that promote MSMEs in the economy. 

 

Small Industries and Development of India has launched a new scheme known as SIDBI-loan for the purchase of equipment for enterprises development (SPEED). 

 

Under the SIDBI-loan for purchase of equipment for enterprises development (SPEED) Scheme, the lenders provide quick access to firms for Micro, Small, and Medium Enterprises, especially in the manufacturing segment & service sector. 

 

 It provides financial support to the borrowers for the purchase of equipment for the development of MSMEs. 

 

Eligibility criteria of the SPEED Scheme 

The eligibility criteria for getting a loan under SPEED Scheme are listed below: - 

  • The existing units of Micro, Small, and Medium Enterprises having a net profit with a minimum 3 years of operations and should have balanced sales & cash profit in the past two years are eligible. 

 

  • The applicant should not be a defaulter to any financial institution or bank. 

 

  • Other financial norms are specified periodically. 

 

Eligible expenditure for the SPEED Scheme 

  • For New to Bank (NTB) 

The purchase of machinery from the OEMs with whom SIDBI has a Memorandum of Understanding (MoU). 

 

  •  For Existing Customer 

Any original equipment manufacturer (OEM) 

  1. Preferred machinery should be related to the same line of business
  2. Used & refurbished machines are not eligible under the SPEED Scheme. 

 

Quantum of Assistance  

The loan amount provided to the borrowers under SPEED Scheme is given below: -  

Customer  Assistance provided  
For New to Bank customer of SIDBI Up to 100% of the cost of machinery to a maximum of Rs. 1 Cr. Will be given 
For existing customers of SIDBI Up to Rs. 2 Crores 

 

Interest rate of SPEED Scheme 

The rate of interest under the SIDBI-loan for purchase of equipment for enterprises development (SPEED) scheme for the purchase of equipment is offered between 10% to 25% per annum. 

 

Form of assistance  

  • Term loan  
  • Revolving Term loan 

 

Repayment tenure and Moratorium of SPEED Scheme 

The maximum repayment tenure of the SPEED Scheme is 2 to 5 years along with a Moratorium period of 3 to 6 months. 

 

Documents required for the SPEED Scheme 

Listed below are the documents required to avail a loan under the SPEED Scheme: -   

  • KYC papers as per the guidelines of the bank. 
  • Audited financial statements for the last 3 months. 
  • Copy of Partnership deed, MoA (Memorandum of Association), Trust deed. 
  • Proof of Identity document 
  • Proof of Address document 
  • Copy of lease agreement and rent 
  • Copy of Udyog Aadhar Memorandum. 
  • Copy of sanction letter of other banks for the arrangement of existing banking. 
  • Copy of GST registration certificate. 
  • Proforma Invoice for the machinery. 
  • Copy of consent to establish from Process Control Book (PCB). 
  • Information about loans given by the financial institutions, banks, and NBFCs that are currently outstanding. 
  • The application should be filed for the requirement of additional power load. 
  • Documents of existing power load. 
  • Statement of immovable directors and promotors. 

 

Other documents  

  • Copy of Udyog Aadhar Memorandum  

 

  • Copy of GST Registration Certificate. 

 

  • Copy of sanction letters of other banks for fund arrangement (in case any existing loan). 

 

Online application procedure for the SPEED Scheme  

The procedure of application for the SPEED scheme is given below: -   

Step 1: - The eligible Micro, Small, and Medium Enterprise requires to approach the preferred branch for the loan.  

Step 2: - The borrower has to fill in an application with the KYC application form and affix all the required documents.   

 

Offline Application procedure for the SPEED Scheme 

The procedure of application for SIDBI-loan for purchase of equipment for enterprises development (SPEED) scheme is given below: -   

Step 1: - The applicant is required to approach the nearest bank branch to avail loan under the scheme. 

Step 2: - The applicant should fill in the application form of the SPEED Scheme with all the required details. 

Step 3: - Affix all the specified documents as required. 

Step 4: - Submit the loan application form to the bank representatives. 

Step 5: - The representative will verify the application form. 

Step 6: - After the verification, the borrower will be given an acknowledgement slip for further processing. 

Financeseva helps you to avail SPEED Scheme with the best rates and terms.   

Also read: - SIDBI Loan for Purchase of Equipment for Enterprises Development Plus

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