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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 17 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., Macpower CNC Machines Limited, Toshiba Machine (Chennai) Private Limited, Global CNC Automation, Cosmos Impex (India) Private Limited, Lakshmi Machine Works Limited, Tsugami Precision Engineering India Pvt Ltd., Electronica Plastic Machines Limited, Sahajanand Laser Technology Limited, Yamazaki Mazak India Private Limited
  • 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.