Ubharte Sitare Loan Scheme

Ubharte Sitaare Loan Scheme 

Ubharte Sitaare Loan Scheme has been designed for export-oriented MSME units. Under this scheme, financial assistance is provided to borrowers of SIDBI for expansion, modernization, diversification, and technology/capacity upgrading. So, MSME units will not face problems in obtaining funds.  

Features of the Ubharte Sitaare Loan Scheme:  

• MSME units with their technology, products, or processes are identified and financed.
• These units are supported by SIDBI through debt financing. To provide support in the form of equity, a separate alternative investment fund named Ubharte Sitaare Fund has been registered with SEBI. India Exim Bank and SIDBI have contributed to creating this fund.
• MSME units with low performance butwith the potential to export will be financed.

Objectives:  

• This scheme provides financial support to export-oriented units that are unable to expand their export operations due to a lack of finance.
• To identify MSME units and firms, whose products, processes, or technology are different for differentiated products, processes, or technology. Identifying and motivating them to boost their export business.
• To assist current exporters in diversifying their product offerings and reaching new export markets.
• To identify the challenges faced by businesses and reduce the issues encountered.

Eligible Enterprises:  

1. Future champions with high potential for export
2. MSME units with unique technology, products, and processes.
3. The following high-export-potential sectors are eligible to receive financial assistance from SIDBI:

• Automobile industry
• Aerospace & Defense
• Chemicals
• Food Processing
• IT & ITeS
• Pharmaceuticals
• Precision engineering
• Textiles and allied sectors

Eligibility criteria for Existing/New units 

• Small and mid-sized companies that are fundamentally strong and have good financials.
• All standard norms will be applicable to existing units. Like CIBIL, CMR, and due diligence, etc.

Quantum of Assistance  

• SIDBI will provide financial assistance tailored to the needs of MSMEs. The maximum assistance provided will be 80% of the project's cost. Joint financing with EXIM Bank is also available through the SIDBI Ubharte Sitaare Programme.
• The financial assistance will be provided in the form of a term loan or foreign currency term loan.
• Term loans provided to export-oriented MSMEs will be used for expansion, modernization, diversification, technology/capacity upgrading, machinery, and equipment, among other purposes.

Interest Rate:  

Under the Ubharte Sitaare Loan Scheme, the loan interest rate can range from 7% to 9% per annum. The final interest rate will depend on the borrower's credit rating. 

Note:- 25% interest rate subsidy is also available in this scheme.  

Repayment period:  

Ubharte Sitaare scheme offers a repayment period of up to 6 years, including a moratorium period of 2 years 

Note: The repayment period may be extended to 10 years.  

Documents Required:  

• SIDBI provides a simple one-page application and a built-in checklist for documentation
• KYC Documents
• Copy of MoA/Partnership deed/Trust Deed
• Rent/ Lease Agreement
• Copy of Udyog Aadhar Memorandum
• Copy of GST Registration Certificate
• Documents for Identity proof
• Documents for Address proof

How to apply for the Ubharte Sitaare Loan Scheme :  

Eligible MSMEs can visit the SIDBI website and proceed to the online application page to apply for the scheme. 

The Online Registration Login page tab will appear. The applicant will click on it to register as a new user. The applicant must provide the enterprise name, phone number, email, and proposed total loan requirement. After successful registration, a username and password will be provided. 

After logging into the portal, the applicant must complete the one-page application and built-in checklist, and upload all the required documents. 

After this,applicant have to visit the SIDBI branch with all the documents to submit it. 

After this, SIDBI officials will verify all the documents, after KYC and due diligence check, if all your documents are complete then your loan will be sanctioned.