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SMILE

KEY POINTS

  • Competitive interest rates.
  • Funding of part Promoter contribution by way of soft loans.
  • Longer repayment period.
  • Quick dispensation

SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE)

  • Emphasis will be on covering new enterprises in the manufacturing as well as services sector.
  • The emphasis will however, be on financing smaller enterprises within MSME.
  • Existing enterprises undertaking expansion, to take advantage of new emerging opportunities, as also undertaking modernization, technology upgradation or other projects for growing their business will also be covered.
  • Minimum Loan Size - ₹ 10 lakh for Equipment Finance & Others : ₹ 25 lakh.
  • Longer repayment period upto 10 years including moratorium of upto 36 months.
  • Minimum Promoter Contribution of 15% subject to Maximum DER of 3:1
Term Loan
  • First charge over all assets created under the project.
  • Personal guarantee of promoter(s).
  • Cases involving term loan up to ₹ 2 crore may be covered under Credit Guarantee Scheme of CGTMSE.
ACR and FACR norms would be applicable in terms of extant Loan Policy.
Soft Loan
  • Residual charge over the entire assets
  • Personal Guarantee of the Promoter(s).

SMILE Equipment Finance

  • Quicker dispensation of machinery loan through Contactless Platform.
  • Simplified application format.
  • Competitive Rate of Interest.
  • Lower Promoters’ Contribution

SMILE Equipment Finance (SEF)

MSME entities should be in existence for at least 3 years having satisfactory financial position.
Investment in Plant & Machinery/MFAs/Need based civil construction, if any
Minimum loan amount is ₹ 10.00 Lakh with a cap on maximum loan amount.
As per SMILE.
Maximum repayment period shall not be more than 72 months including moratorium.

Loans - OEM Partnership

KEY POINTS

  • One stop solution for MSMEs purchasing machines from OEMs.
  • Financial tie ups arranged at the time of placing of order with OEMs.
  • Simple Credit dispensation.
  • Quick disbursal under CGTMSE cover is proposed to be taken by MSME.

Loans Under Partnership with OEM

MSME entities should be in existence for at least 3 years having satisfactory financial position.
Investment in Plant & Machinery purchased from respective OEMs.
Generally, upto ₹ 100.00 Lakh. Higher loan amount can also be considered subject to Bank’s guidelines.
As per SMILE.
Normally upto 60 months including eligible moratorium.

Working Capital

  • Presently available for MSME, who have outstanding Term loans from SIDBI or propose to avail both TL & WC from SIDBI.
  • Option to choose banking platform from 2-3 banks
  • Seamless approvals as per customer instructions for setting DP etc.
  • Single window for term loan customer to avail working capital facilities.

Working Capital (Cash Credit)

  • Should be an eligible MSME unit.
  • SIDBI assistance shall be considered to any of the following category of customers.
  • Existing customers who are solely banking with SIDBI (including enhancement.
  • Existing customers of SIDBI (who are also banking with other banks).
  • Existing well performing units who do not enjoy WC facility with any other banks.
  • New entities, where term loan is considered by SIDBI.
  • Takeover of working capital accounts, as a part of term loan takeover, may be considered subject to compliance of takeover guidelines.
Satisfying minimum financial parameters under the scheme.
ParametersEligibility Norm
Total outside liabilities/ tangible Networth (TOL/TNW)Not to exceed 4:1
Current Ratio1.25
Interest CoverageMinimum 1.5 times
Overall Asset Coverage1.3 for existing units and 1.4 for new projects
Internal RatingAs per existing Bank’s Norms

Trader Finance

KEY POINTS

  • Simplified application format.
  • Flexible repayment period
  • Competitive Rate of Interest.
  • Lower Promoters’ Contribution for capex

SIDBI Trader Finance Scheme (STFS)

MSME Retails / Wholesalers (including stockists, super-stockists, distributors, dealers, organized retailers including supermarkets, malls, departmental stores, retail chains, etc.) in existence for at least 3 years having satisfactory financial position. Drop in sales turnover, if any, should not exceed 10% year-on-year in the last 2 years.
Any business related expenditure i.e. Working capital requirement and need based capital expenditure (including renovation of existing owned shops), if any (excluding non-business related commodity trading of metals, gems & jewellery, etc).
  • Minimum ₹ 10 lakh and maximum ₹1 crore. The assistance shall be need based.
  • Further, the total assistance from SIDBI for working capital and capex should not exceed maximum ceiling of ₹ 1 crore.
SIDBI offers attractive interest rate on this product.
Repayment period would depend upon cash flow and size of the business subject to maximum repayment period of 60 months including moratorium.

SPEED

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

  • Upto 100% financing
  • One-page application format
  • Quick sanction and disbursement
  • MSME units with at least 3 years operations with stable sales and cash profits in immediate past 2 years.
  • For New To Bank (NTB)- Machinery purchased from the OEMs with whom SIDBI has an MoU. Present list of 8 OEMs is as under: Lokesh Machines Ltd., Jyoti CNC Automation Ltd, Milacron India Pvt Ltd, ACE Designers Ltd, ACE Manufacturing Systems Ltd., Bharat Fritz Werner (BfW), HURCO India Pvt Ltd., Batliboi Ltd.
    For Existing Customer- Any OEM
  • Proposed machinery should relate to same line of business
  • 2nd hand/ refurbished machines are not eligible.
  • Upto 100% of the machinery cost subject to maximum of ₹1 crore for New to Bank (NTB) customers and upto ₹2 crore for existing customers of SIDBI. SIDBI reserves the right to sanction lower amount depending upon assessment of repayment capacity.
  • 9.25% to 10% p.a.
  • 2 to 5 years including moratorium of 3-6 months.

SPEED Plus

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

  • Upto 100% financing of high-end machineries
  • Quick sanction and disbursement
  • No immovable property needed as collateral
  • MSME units with at least 5 years operations with stable sales and cash profits in immediate past 3 years
  • Minimum net sales of ₹ 5 crore and no operating loss in immediate past two years
  • Machinery purchased from identified OEMs manufacturing high end machines or authorised dealers / Indian subsidiaries of such foreign OEMs, which have strong brand reputation and with whom SIDBI has entered into an MoU
  • Proposed machinery should relate to same line of business
  • 2nd hand/ refurbished machines are not eligible
  • Upto 100% of the machinery cost subject to maximum of ₹2 crore for New to SIDBI customers (based on 20% - 30% FD) and up to ₹3 crore for existing customers of SIDBI (based on 15% - 30% FD)
  • 8.80% to 10.50% p.a.
  • 2 to 5 years including moratorium of 3-6 months

RLS

SIDBI - Retail Loan Scheme for Trade Finance (RLS)

  • Upto 100% finance for capex / working capital
  • Quick sanction and disbursement
  • Flexible security profile
  • Existing well performing MSE Retail & Wholesale Traders
  • Min 3 years in operations with stable sales & cash profits in past 3 years.
  • Satisfactory track record with Banks/FIs/NBFC for past 12 months
  • Both MSE Retail Traders & Dealers (dealing with products of at least one large reputed supplier having turnover of around ₹1000 crore or more) and Wholesale Traders are covered (Export trade & large commercial real estate-based models are not covered under RLS)
  • For Capex: Acquisition of business premises, godown, shop, office premises, repair, furnishing, renovation of existing business premises and/or purchase of furniture & fixtures, equipment’s, tools, computers, UPS, DG set, etc.
  • For working capital/ additional working capital (in case the borrower is already having working capital/overdraft facility with some other Bank/FI).
    • Loan amount: ₹10 lakh to ₹100 lakh
    • Retails traders and dealers: upto ₹50 lakh
    • Wholesale traders (stockists, super stockists, etc.) – upto ₹100 lakh
  • Finance towards working capital – Max 20% of the sales turnover of last FY
  • Security may include upto 25% FD depending on risk profile
  • 10.00% to 11.50% p.a.
  • 36 to 60 months (including moratorium of up to 3 months)

TULIP

Top Up Loan for Immediate Purposes (TULIP)

  • Up-to 100% finance based on 10% FD & extension of charge
  • Quicker sanction within 7 days
  • No additional collateral security (except SIDBI FD)
  • At least 1-year association with SIDBI with satisfactory track record
  • Expansion in same line of business at same location
  • Cash profit in last FY
  • Purchase of machinery / equipment
  • Need based civil construction/renovation
  • Acquisition of DG set/other MFAs (including testing equipment, dies & moulds etc.)
  • Margin money for working capital (MMWC)
  • To execute sudden/specific/bulk orders which are self-liquidating nature and are against a min. BBB rated counter party or a state / central government department counter party with a track record in making timely payments
  • 30% of existing exposure or 20% of net sales subject to Max ₹2 Crore
  • 10.00% to 11.00% p.a.
  • Max. 5 years (including moratorium of up to 6 months)

STAR

SIDBI Term-loan Assistance for Rooftop Solar PV Plants (STAR)

  • Helping MSMEs to reduce their Power bill
  • Across the segment coverage with 25 KW to 500 KW plants (indicative)
  • Loan Amount: ₹10 lakh to ₹250 lakh
  • Quick sanction and fast disbursement
  • 100% finance
  • Zero promoter’s contribution
  • FD of 15% to 25% of Loan (interest bearing)
  • Attractive Interest rates
  • Credit Guarantee cover available
  • Simple Loan documentation
  • Direct payment to Supplier
  • Solar Panels / Equipment’s (Including all accessories) from established suppliers, manufacturers, aggregators, etc.
  • Installation cost
  • One-page application
  • Standard KYC checks and due diligence
  • Vintage: New Customer – 4 years, Existing Customer – 2 years
  • 2 years cash profits
  • Satisfactory repayment track record
  • For New Customer: Minimum IACR of 0.5% (if no CGTMSE cover)
  • Proposed Solar rooftop capacity not to exceed connected load
  • Only On-site projects
  • Stand alone and Grid connected, both covered
  • Maximum loan up to 25% of Net Sales
  • 9.10% to 10.20% p.a.
  • Repayment up to 5 years (including moratorium of 3 to 6 months)

SAFE

SIDBI Assistance to Facilitate Emergency response against corona virus (SAFE)

  • Upto 100% financing for capex / working capital
  • A quick delivery product – loan with 48 hours
  • Cost of credit guarantee cover is borne by SIDBI
  • No processing fees
  • No prepayment charges
  • For New to Bank customer - At least two years of cash profits and account not in SMA1/2 category
  • For existing Bank customer - Cash profit in last audited balance sheet and account not in SMA1/2 category
  • To finance all existing MSMEs who are manufacturing any products or providing any services directly related to fighting Corona Virus
  • Max. upto ₹ 50 Lakh
  • 5% p.a. fixed on reducing balance basis
  • Term Loan: Upto 5 years including moratorium
  • WCTL: Upto 18 months including moratorium
  • For Existing customers: Extension of existing securities /any other security to meet asset coverage
  • For New to SIDBI customers: Credit guarantee coverage, or any other security to meet asset coverage norms
    In case of WCTL to New to SIDBI customers, promoter’s contribution of 25% is converted into cash collateral
  • Drawals under the scheme shall be valid till September 30, 2020

SAFE Plus

SIDBI Assistance to Facilitate Emergency response against corona virus – Plus (SAFE Plus)

  • Upto 100% of WC requirement against specific orders
  • A quick delivery product – loan with 48 hours
  • Cost of credit guarantee cover is borne by SIDBI
  • No processing fees
  • No prepayment charges
  • For New to Bank customer - At least two years of cash profits and account not in SMA1/2 category
  • For existing Bank customer - Cash profit in last audited balance sheet and account not in SMA1/2 category
  • To meet emergency / additional working capital requirement of all existing MSMEs having confirmed order(s) from Central/ State Govt./ Govt. agencies nominated for the purpose and who are manufacturing any products or providing any services directly related to fighting Corona Virus (Covid-19)
  • Maximum upto ₹100 Lakh (linked to turnover of the unit)
  • 5% p.a. fixed on reducing balance basis
  • Revolving WCTL - Repayable over 4-month cycle based on execution schedule of govt orders i.e. each drawal against each order to be repaid gradually over a period of 4 months and payment may be made anytime during these 4 months.
  • For existing customers - Extension of charge on existing security/any other security available
  • For New to SIDBI customers - Escrow arrangement for receivables of specific govt. order or Power of Attorney in favour of SIDBI, exclusion of charge from working capital banker, credit guarantee cover at no cost to customer for MSE units or any security offered by borrower to meet asset coverage norms
  • Drawals under the scheme shall be valid till September 30, 2020

TWARIT

KEY POINTS

  • The objective of the scheme (ECLGS) is to provide needed relief to MSMEs, whose operations are impacted by COVID -19

Timely Working Capital Assistance to Revitalise Industries in Times of corona crisis (TWARIT)

  • All existing borrower accounts including under Credit Delivery Arrangement with combined outstanding credit facilities up to ₹25 crore as on 29.2.2020, and annual turnover of up to ₹100 crore for FY 2019-20 are eligible under the Scheme
  • The Scheme is valid for existing customers on the books of the Bank. Borrower accounts should be less than or equal to 60 days past due as on 29th February 2020 in order to be eligible under the Scheme. i.e. All borrowers which have not been classified as SMA 2 or NPA by any of the MLIs as on 29th February 2020 will be eligible for the Scheme
  • Loans provided in individual capacity are not covered under the Scheme.
  • Eligible entities must be GST registered in all cases, where such registration is mandatory. This condition will not apply to entities that are not required to obtain GST registration.
  • An ‘opt-out’ option should be provided to the eligible borrowers to enable them to choose whether they wish to opt out of the TWARIT facility.
  • Upto 20% of total outstanding loans with SIDBI upto ₹25 crore as on February 29, 2020, with cap exposure of ₹5 crore or as modified by Govt of India / NCGTC, subject to borrower meeting all the eligibility criteria.
  • Total outstanding amount would comprise of on-balance sheet exposure such as outstanding amount of WC limit, term loans and WCTL.
  • Off-balance sheet and non-fund-based exposures will be excluded
  • Uniform rate of 8.25% p.a. with annual reset.
  • 4 years (moratorium of 1 year + repayment of principal in 3 years)
  • Extension of charges on the Primary Security / Collateral Security.
  • The additional WCTL facility granted under TWARIT shall rank second charge with the existing credit facilities in terms of cash flows and security, with charge on the assets financed under the Scheme to be created within a period of 3 months from the date of disbursal.
  • No additional collateral shall be insisted for additional funding under TWARIT.
  • Valid up to October 31, 2020 or till notification by NCGTC whichever is earlier.
  • Nil
  • 4 years including a moratorium of upto 12 months. No prepayment penalty. .
  • No Guarantee Fee shall be charged from the borrower for the Credit facilities provided under the Scheme.
  • As per the extant instructions loan documents to be executed
  • The Trustee Company (NCGTC) shall provide 100% Guarantee coverage on the outstanding amount for the credit facility provided under the Scheme as on the date of NPA.