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

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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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