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SIDBI Loan for Purchase of Equipment for Enterprises Development Plus

  • 04-May-2022
SIDBI Loan for Purchase of Equipment for Enterprises Development Plus

Small Industries and Development Bank of India has launched a new scheme known as SIDBI-Loan for Purchase of Equipment for Enterprises Development Plus (SPEED PLUS). 

 

It provides financial assistance to the borrowers of SIDBI for the purchase of machinery or equipment for the development of enterprises. 

 

Eligibility criteria for SPEED PLUS Scheme 

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

  • To avail a loan under this scheme, the units of MSME must have a minimum of 5 years of operations with cash profit and balanced sale in the past 3 years.
  • The Micro, Small, and Medium Enterprises should have a minimum net sale of Rs. 5 crores & no operating loss in the last 2 years.

 

Eligible enterprises of the SPEED PLUS Scheme 

Entities that are eligible under the SIDBI-Loan for Purchase of Equipment for Enterprises Development Plus (SPEED PLUS) scheme are given below: -  

  • Machinery should be purchased from any strong brand reputation such as Identified Original Equipment Manufacturer (OEM), authorized dealer, Indian subsidiaries of such foreign OEMs who are experts in manufacturing high-end machines.

 

  • Preferred machinery should be related to the same line of business.

 

  • Used or refurbished machines are not eligible.

 

Quantum of Assistance 

  • Under the SPEED PLUS Scheme, the new SIDBI customers can avail of up to 100% of the machinery cost to a maximum of Rs. 2 crores (Based on 20% to 30% FD).

 

  • The existing customers of SIDBI can avail of up to Rs. 3 crores (based on 15% to 30% FD).

 

The interest rate of the SPEED PLUS Scheme 

  • The rate of interest for the loan under the SIDBI-Loan for Purchase of Equipment for Enterprises Development Plus (SPEED PLUS) scheme ranges from 8.80% to 10.50% per annum.

 

Repayment tenure of SPEED PLUS Scheme 

  • Small Industries and Development Bank of India offers a repayment schedule of 2 to 5 years with a Moratorium period of 3 to 6 months.

 

Documents required for the SPEED PLUS Scheme 

Listed below are the documents required to avail a loan under the SPEED PLUS 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.
  • Application should be filed for the requirement of additional power load.
  • Documents of existing power load.
  • Statement of immovable directors and promotors.

 

 Application procedure for the SPEED PLUS Scheme 

The procedure of application for the SIDBI-Loan for Purchase of Equipment for Enterprises Development Plus (SPEED PLUS) 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.  

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

Also read: - SIDBI Term-Loan Assistance for Rooftop Solar PV Plants (STAR)

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