SIDBI Green Loan Scheme : Small Industries Development Bank of India

Organization : Small Industries Development Bank of India
Scheme Name : Green Loan Scheme

Website : https://www.sidbi.in/#
Scheme Details : https://www.statusin.in/uploads/20224-Scheme.pdf

Green Loan Scheme

Objective:
To provide assistance to MSMEs to meet capital expenditure, non operational and intangible expenditure for improving energy efficiency / adopting cleaner production, measures / waste recycling, waste treatment and disposal, ISO certification, green rating, etc.

Related : SIDBI Service Sector Assistance : www.statusin.in/20214.html

Eligibility:
SIDBI’s existing borrowers would be eligible for assistance under the Scheme, who satisfy the following criteria –
1. One year satisfactory principal repayment track record with SIDBI.
2. Should have earned cash profit in last two years of operation and should not be in default to anybank / FI.
3. Having an internal credit rating of not below CR3 or its equivalent. The rating should not be more than 6 months old.

Eligible expenditure:
1. Equipments / machinery / MFA / civil construction eligible as per JICA / KfW Energy Efficiency / KfW Cleaner Production Options / AFD Energy Saving Schemes’ equipment list.
2. Investment in renewable energy for captive consumption.
3. Expenditure on energy audit / environment compliance audit / pollution control & management consultancy services.
4. Expenditure on green rating, BEE star rating of its product, etc.
5. ISO 14000 or other accredited environmental certification.
6. CDM registration related expenditure [i.e. hiring consultant for development of PDD, obtaining approval of designated authority, validation, registration of the project, etc.].
7. Second hand/refurbished machinery/equipment are not eligible.

Quantum of Assistance:
50% of the average net cash accruals for the last two years, subject to a maximum of `25 lakh per financial year. The assistance should not be more than themaximum previous loan sanctioned to the borrower.

Repayment:
The loan shall be repaid within 36 months including moratorium.

Terms of assistance:
1. Process/upfront fee : Upto 0.5% of the loan amount plus service tax, as applicable.
2. Interest rate : Lower interest rate linked to SIDBI’s PLR.

Other conditions as applicable under Direct Finance Scheme.

Security:
1. Extension of charge on existing assets charged to SIDBI and creation of charge on proposed assets to be acquired by the borrower.
2. Proposals may be covered under CGTMSE credit guarantee cover, if applicable.
3. Overall asset coverage should be as per the extant Loan Policy.

For enquiries, please contact the nearest SIDBI office

SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises SMILE :
The objective of the Scheme is to provide soft loan, in the nature of quasi-equity and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME as also for pursuing opportunities for growth for existing MSMEs.

About Us :
Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.

To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer – friendly institution and for enhancement of share – holder wealth and highest corporate values through modern technology platform