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.
The eligibility criteria for getting a loan under SPEED Scheme are listed below: -
The purchase of machinery from the OEMs with whom SIDBI has a Memorandum of Understanding (MoU).
Any original equipment manufacturer (OEM)
The loan amount provided to the borrowers under SPEED Scheme is given below: -
|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|
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.
The maximum repayment tenure of the SPEED Scheme is 2 to 5 years along with a Moratorium period of 3 to 6 months.
Listed below are the documents required to avail a loan under 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.
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.