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SIDBI Loan for Purchase of Equipment for Enterprise’s Development

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Status: Active

Classification: Central Government Schemes

Release Date(s):
12th March 2024

Offering: Loan/Credit

Entity Type: Development Financial Institution

Reading Time: 5 Mins

Ticket Size: Upto ₹50 Crores

Entity Name: Small Industries Development Bank of India

#Views: 34

Disclaimer….before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.

 

About this scheme…

SIDBI Loan for Purchase of Equipment for Enterprise’s Development (SPEED) Scheme was launched in 2019 by Small Industries Development Bank of India (SIDBI) to facilitate flow of credit to MSMEs investing in Plant & Machinery and Miscellaneous Fixed Assets.

 

How is it being implemented?

Under SPEED Scheme, direct financial assistance in the form of loans is given to:

  • MSMEs operating in manufacturing or services sector

 

What’s on offer?

I. Product

  • Term loan
  • Ticket size: upto ₹50 Crores

 

II. Purpose:

  • Purchase of machinery or equipment (new or second hand/refurbished machines subject to compliance of standard guidelines)
  • Purchase of miscellaneous fixed assets

 

III. Borrower Type:

  • Sole Proprietorship, Partnership Firm, Limited Liability Partnership (LLP) or Company
  • For more information around this, please contact SIDBI via means mentioned below

 

IV. Security or Collateral or Guarantee or Insurance

  • Security: First charge over assets created out of the loan disbursed under the Scheme
  • Collateral: 25% security in the form of Fixed Deposit if 100% financing has been availed. For more information around this, please contact SIDBI via means mentioned below
  • Guarantee: Nil
  • Insurance: For more information around this, please contact SIDBI via means mentioned below

 

V. Interest Rate

 

VI. Processing Fee

  • For more information around this, please contact SIDBI via means mentioned below

 

VII. Margin Money Requirement

  • NIL if 100% of cost of machinery or equipment or miscellaneous fixed assets is financed (as 25% security in the form of Fixed Deposit is required to be given as suggested above)
  • For all other cases, 25% promoter contribution would be required

 

VIII. Tenure, Repayments & Pre-Closures

  • Tenure: upto 84 months including moratorium upto 12 months
  • Repayments: Equated Monthly Installments (EMIs)
  • For information around pre-closures, other terms etc., please contact SIDBI via means mentioned below

 

IX. Turnaround Time

  • One is required to fill a simple application online post which sanction & disbursement will happen quickly
  • For more information around this, please contact SIDBI via means mentioned below

 

Interested? Read ahead to check your eligibility….

I. Is your business a Micro, Small, or Medium Sized Enterprise (MSME) as per MSMED Act 2006?

 

II. Has your business been operational for atleast the last three years?

 

III. Has your business been making cash profits for atleast the last three years?

 

IV. Your business has till date not defaulted on any loan from Banks or Financial Institutions?

 

If your answers to the questions above are an emphatic YES, you are all set to avail loan under SIDBI’s SPEED Scheme!

 

So…how big is this scheme and what has been done so far?

I. No details around the Scheme is available in public domain

 

So, now, how should you go about it?

I. For submitting an application, register and apply online here via SIDBI’s website

 

II. For information on the loan application, application process and documentation requirements, please contact SIDBI via means mentioned below

 

III. For any queries, please contact SIDBI:

 

OR

  • Call on Toll Free Number: 180 022 6753, Timing: 10.30AM – 6.00PM

 

OR

  • WhatsApp on +91 86930 33333

 

OR

 

OR

 

OR

 

OR

 

Go on then…and do spread the word!

 

Sources:

1. About SIDBI SPEED Scheme 1

2. About SIDBI SPEED Scheme 2

3. SIDBI EXPRESS Scheme Launch Date

4. SIDBI Annual Report 2022-23

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