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Top up loan for immediate purposes (TULIP)

  • 27-Apr-2022
Top up loan for immediate purposes (TULIP)

Small Industries and development bank of India has launched a new scheme known as Top up loan for immediate purposes (TULIP) Scheme which aims at the development of the Micro, small, medium, and enterprises (MSME) sector. 

This SCHEME is launched for the requirements of funds that should be utilized for business-related purposes. 


The objective of TULIP Scheme 

  • The objective of SIDBI under the Top up loan for immediate purposes (TULIP) Scheme is to strengthen the MSME sector, by providing them with financial assistance.


Key features of the TULIP Scheme  

Listed below are the key features of the Top up loan for immediate purposes (TULIP) Scheme. 

  • This scheme is provided to the borrowers without any trouble.
  • No additional security or collateral.
  • The loan will be sanctioned quickly within 7 days at an attractive rate of interest on working capital and term loan.
  • Under this scheme, there is a security profile to acquire a loan from the Small Industries and Development bank of India (SIDBI).
  • 100% finance on 10% of fixed deposit and extension of charge.


Eligibility criteria of the TULIP Scheme 

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

  • Cash profit for the previous financial year.
  • A minimum of 1 year association with SIDBI and maintain an adequate track record.
  • Expansion in the same business and at the same location.


Eligible expenditure 

Any expenditure related to business such as equipment or machinery and based on the need for renovation and civil construction. 

The expenditure should involve the margin money for working capital (MMWC). 

The expenditure requires the execution of specific, sudden, bulk orders which are of a self-liquidating nature. 

The Better Business Bureau (BBB) rated state or central government department counterparty with a record of accomplishment in making payments on time. 


Quantum of Assistance

  • A minimum quantum of assistance should be 30% of existing exposure and 20% of net sales.
  • The maximum amount of Rs. 2 crores can be acquired to fulfill the working capital requirements.


The interest rate of TULIP Scheme 

  • Small Industries and Development Bank of India provides a rate of interest of about 10 to 11% per annum with flexible repayment.


Tenure and Moratorium of the TULIP Scheme  

  • The maximum repayment tenure for the loan is 5 years along with a moratorium of 6 months for the repayment of the principal amount, and it can be paid back in the form of EMI.


Documents required for the TULIP scheme 

Listed below are the documents required for Top up loan for immediate purposes (TULIP) Scheme: -  

  • Income Tax Returns of promoters with IT assessment order for previous 3 years.
  • List of proposed and existing stakeholders & holding pattern with the name of stakeholders, etc.
  • KYC proof of new directors (for an individual)
  • KYC proof of mortgagors, guarantors.
  • Proof of address if there is any change in the address of registered factories or office.
  • Previous 3 years of annual accounts of the borrower units.
  • Memorandum of Association of the borrower’s company, copy of registration certificate along with the registration of firms, and partnership deed of the borrower (if registered).
  • Annual accounts of the associate concern, corporations giving the guarantee, group companies.
  • Income Tax Return of guarantors with IT assessment order for the last 3 years.
  • Recent electricity bill and power sanction letter of existing units.
  • Articles of Association and Memorandum of Association of corporations giving a guarantee.
  • Duly filled out electronic application form and profitability projections.
  • Copy of approved building plan.
  • Estimation of architects for civil works.
  • Multiple banking arrangements – Annexure
  • Quotations for miscellaneous fixed assets, plant and equipment, and other project heads, etc.


The online application procedure for TULIP Scheme 

  • The eligible micro enterprises require to access the online application page of SIDBI to apply for the scheme.
  • The registration page will be displayed on their screen, click on the registration tab to register as a new user in SIDBI to get a loan.
  • The entities are required to provide information of enterprise phone number, name, total loan requirements, and email address.
  • After the completion of registration, the password and username will be given to the entity.
  • Then, log in to the portal and fill in a one-page application form.
  • After the verification of KYC documents and due diligence, the loan amount will be credited to their respective account within 48 hours.


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

Also read: - SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE)

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