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

  • 23-Apr-2022
SIDBI Schemes - Features, Interest Rate, Steps to Apply for Loan

Small Industries and Development of India was established in the year 1990 under the act of the parliament. 

Under SIDBI, there is a wide range of customized schemes designed for the MSME Industry. The primary objective of SIDBI is to help the lenders in assisting SSIs (Small Scale Industries) and MSMEs (Micro, Small, Medium, and Enterprises) to acquire funds for various business purposes and to fulfill the requirements of working capital. 

 

Banks that provide SIDBI Schemes in India 

Bank name Interest rates  
HDFC Bank 11.90% – 21.35% p.a. 
Ziploan  1% – 1.5% per month (Flat ROI) 
IDFC First Bank 14.50% onwards 
Bajaj Finserv 17% p.a. onwards 
RBL Bank 17.50% – 25% p.a. 
Fullerton Finance 17% – 21% 
Hero FinCorp Up to 26% p.a. 
ICICI Bank 18% onwards 
NeoGrowth Finance 19% – 24% p.a. 
Tata Capital Finance 19% p.a. onwards 
Indifi Finance 1.5% per month onwards 
Lendingkart Finance 1.5% – 2% per month 
Kotak Mahindra Bank 16% – 19.99% 
Axis Bank  14.25% – 18.50% p.a. 
FlexiLoans  1% per month onwards 
IIFL Finance 11.75% – 25.75% p.a. 

 

Features of SIDBI 

  • SIDBI loan scheme provides financial support to the MSME and SSIs.
  • It assists in discounting the bills of Small-Scale Industries.
  • It provides financial services like purchase, leasing services, and factoring.
  • It gives refinance to the financial institutions including lenders, small finance companies, and NBFCs (Non-Banking Financial Companies).
  • It develops employment opportunities among SSIs.
  • Bank loans are provided to an unprivileged group of people and women.

 

Loan products from SIDBI 

                                                                                                                       Details of Term loan 
Loan amount  Minimum Rs. 10 lakhs 
Loan tenure  Up to 10 years 
Nature of loan Term loans can be borrowed in the form of working capital term loans.  
Minimum promoter’s contribution 

New project – 33% 

Existing well performing units – up to 25% 

Debt Equity Ratio (DER) Not exceeding 3:1 
Asset Coverage Ratio (ACR) 

Minimum overall assets – 1.3 

Existing units – 1.4 

New entities – including FACR of 1.00 

Upfront fee  1% of term loan 

 

Schemes offered by SIDBI  

  • STEP
  • SANGAM
  • Ubharte Sitaare
  • STHAPAN
  • TWARIT
  • SAFE Plus (SIDBI Assistance to Facilitate Emergency Response Against Coronavirus Plus)
  • SAFE (SIDBI Assistance to Facilitate Emergency Response Against Coronavirus)
  • STAR (SIDBI Term-loan Assistance for Rooftop Solar PV Plants)
  • ARISE
  • SHWAS
  • AROG
  • TULIP
  • SPEED Plus

 

SIDBI’S Term Loan to enhance the production of MSMEs (STEP) Scheme 

 

                                                                                                                  STEP SCHEME FROM SIDBI  
Rate of Interest  MLCR-based rate as per internal rating  
Loan amount 

For existing customers – Up to Rs. 3 crores. 

For new customers – Up to 2 crores. 

Loan tenure  Up to 3 years + Moratorium up t 3 months 
Nature of loan  Working capital loan and Term loan 
Target group  Micro, Small, and Medium Enterprises 
Nature of Funding  Both in foreign currency and rupees 

 

 

SIDBI and Google Partnership for Assistance to Micro Enterprises (SANGAM) 

 

                                                                                                                        SANGAM FROM SIDBI 
Nature of loan The term loan and Working capital loan 
Interest rate  6% p.a. (5.50% for owned enterprise and women run) 
Purpose  Term loan to micro-enterprises for capital expenditure. 
Loan amount  

Term loan up to 1 crore  

(40% for manufacturing units and 75% for service sector enterprises, job work income, etc.) 

Finance  Up to 100% 
Processing fee Nil  
Repayment tenure  Up to 5 years 
CGTMSE Coverage Available  

 

SIDBI Assistance to Export Oriented MSMEs under UBHARTE SITAARE PROGRAMME 

 

                                                                                                   UBHARTE SITAARE PROGRAMME FROM SIDBI 
Loan amount Based on the requirement of financial assistance to 80% of the project cost. 
Interest rate  Based on MLCR of bank and repo rate with applicable spreads  
Repayment tenure  Up to 6 years (extended up to 10 years) 
Interest incentive  Up to 25 BPS based on the milestone or performance 
Loan facility Foreign currency term loan (FCTL) / Term loan (TL) available 
Promoter's contribution 20% (30% for greenfield units) 
Moratorium  Up to 2 years 

 

SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN) 

 

                                                                                                                      STHAPAN FROM SIDBI  
Interest rate 6.00% to 7.30% p.a.  
Loan amount Term loan – up to Rs. 20 crores, subject to 75% of project report 
Repayment tenure Up to 7 years 
Moratorium  Up to 2 years 
Target group  MSME setting units in sectors under the production linked incentive scheme, identified by the Indian government, high growth sunrise sectors, etc. 

 

Timely working capital assistance to revitalise industries in times of corona crisis (TWARIT) 

 

                                                                                                                   TWARIT FROM SIDBI 
Interest rate  8.25% per annum 
Loan amount  Up to Rs. 25 crores 
Repayment tenure  Up to 48 months + Moratorium period of 12 months 
Prepayment penalty  Nil  
Guarantee fee Nil  

 

SIDBI ASSISTANCE TO FACILITATE EMERGENCY RESPONSE AGAINST CORONA VIRUS – PLUS (SAFE PLUS) 

 

                                                                                                                     SAFE PLUS FROM SIDBI 
Interest rate  5% per annum  
Loan tenure  4 months cycle 
Loan amount  Up to Rs. 1 crore (linked to unit turnover) 
Processing fees  Nil  
Prepayment charges Nil  

 

SIDBI ASSISTANCE TO FACILITATE EMERGENCY RESPONSE AGAINST CORONA VIRUS (SAFE) 

 

                                                                                                                           SAFE FROM SIDBI 
Interest rate 5% per annum  
Loan tenure  Up to 5 months + Moratorium of 6 months 
Loan amount  Maximum up to Rs. 50 lakhs  
Processing fees Nil  
Prepayment charges Nil  

 

SIDBI Term-Loan assistance for Rooftop Solar Photovoltaic (PV) Plants (STAR) 

 

                                                                                                                           STAR FROM SIDBI  
Interest rate  9.10% to 10.20% 
Loan amount Rs. 10 lakhs to Rs. 2.5 crores 
Loan financing 100% 
Coverage  

Installation cost 

Solar panels or equipment including accessories from established manufacturers, aggregators, suppliers, etc. 

Repayment tenure  Up to 5 years + Moratorium of 3 to 6 months  
Credit Guarantee Coverage  Available  
Promoter's contribution  Nil  

 

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

 

                                                                                                                                        ARISE FROM SIDBI 
Target group  MSMEs are involved in high growth and priority sector 
Interest rate  5.50% to 6.80% 
Loan facility  Foreign Currency Term Loan (FCTL) and Term loan 
Loan amount  Up to Rs. 7 crores 
Loan financing 100% for loan up to 3 crores 
Loan tenure  Up to 7 years  
Moratorium  Up to 2 years 

 

SIDBI Assistance to healthcare sector in war against second wave of COVID 19 (SHWAS) 

 

                                                                                                                             SHWAS FROM SIDBI 
Interest rate  4.50% to 5.00% per annum  
Loan amount  Maximum up to Rs. 200 lakhs 
Loan financing  100% financing 
Processing fees  Nil  
Moratorium  Up to 12 months 

 

SIDBI ASSISTANCE TO MSMES FOR RECOVERY & ORGANIC GROWTH DURING COVID19 PANDEMIC(AROG) 

 

                                                                                                                          AROG FROM SIDBI  
Interest rate  5.50% to 6.00% 
Loan amount  Maximum up to 200 lakhs  
Loan financing 100% financing  
Processing fee  Nil  
Moratorium  Up to 12 months  

 

TOP Up Loan for Immediate Purposes (TULIP) 

 

                                                                                                                             TULIP FROM SIDBI 
Interest rate  10.00% to 11.00% 
Loan amount  30% of existing exposure  
Loan tenure  Maximum up to 5 years 
Collateral  Not required  
Finance  Up to 100% financing  
Moratorium  Up to 6 months  

 

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

 

                                                                                                                            SPEED PLUS FROM SIDBI 
Loan amount  

2 crores for new customers  

3 crores for existing customer 

Interest rate  8.80% to 10.50% 
Loan tenure  2 to 5 years 
Moratorium  Up to 3 – 6 months  

 

Steps to apply for SIDBI loan scheme 

Step 1: - Visit the official website of SIDBI. 

Step 2: - Then, click on Borrower’s Corner tab and proceed with your online application. 

Step 3: - After that, you have to enter your username and password. 

Step 4: - Enter the loan amount and select the scheme. 

Step 5: - Then, you will be asked to mention your personal information i.e., name, user ID, business address, state, mobile number, district, etc.  

Step 6: - Click on register, a verification code will be sent to your registered mobile no. Or email address to complete the process. 

Also read: - How to Get a Business Loan without ITR?

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