46 XX | Enlightener Series | B. Central Government Schemes | B.9 SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises

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 updation, 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 email.

About this scheme…

SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN) was launched by Small Industries Development Bank of India (SIDBI) during FY 2021-22 with the aim of facilitating flow of credit to New & Existing MSMEs pursuing growth opportunities by setting up Greenfield Units.

How is it being implemented?

Under STHAPAN, direct financial assistance in the form of loans is given to MSMEs setting up Greenfield units in:

STHAPAN is one of the Direct Finance Schemes launched by SIDBI under Special Liquidity Facility-3 (SLF-3) during 2021-22, a step towards providing liquidity and growth support to MSMEs to help recover from slow down caused by resurgence of COVID-19 pandemic. SIDBI has been allocated a corpus of ₹1,600 Crores by Reserve Bank of India (RBI) towards SLF-3.

Hence, STHAPAN Scheme will be valid till utilization of this corpus as allocated/decided from time to time towards this Scheme. For latest update on validity of this Scheme, please contact SIDBI via means mentioned below.

What’s on offer?

I. Product

Term loans of upto ₹20 Crores, subject to maximum of 75% of project cost

II. Purpose:

Acquisition of fixed assets

III. Borrower Type:

Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Limited Liability Company (LLC), Private Limited Company, Public Limited Company

IV. Security or Collateral or Guarantee or Insurance

Security: First charge over assets created out of SIDBI’s finance
For more information around Security, Collateral, Guarantee and Insurance, please contact SIDBI via means mentioned below

V. Interest Rate

Marginal Cost of the Fund-Based Lending Rate (MCLR) based Return On Investment (ROI) as per internal rating
For more information around interest rate on the Scheme, please contact SIDBI via means mentioned below
Earlier, the interest rate on STHAPAN Scheme was Repo Rate + 2.20% to 3.50% (floating) for first year; with reset applicable thereafter as per internal rating. Hence at Current Repo Rate of 6.50%, the interest rate for first year would have ranged between 6.70% – 10.00%

VI. Processing Fee

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

VII. Margin Money Requirement

25% of project cost

VIII. Tenure, Repayments & Pre-Closures

Tenure of upto 7 years including a moratorium period of upto 2 years
For information around repayments, pre-closures and other condition, please contect SIDBI via means mentioned below

IX. Turnaround Time

After verification of KYC documents & due diligence, the loan amount will be credited within 48 hours (about 2 days)

Interested? Read ahead to check your eligibility….

I. Are you a New or Existing MSME looking to set up a greenfield unit(s)?

II.

Does your business operate in sectors under Production Linked Incentive Scheme identified by GOI?

Does your business operate in High growth / sunrise sectors and other important sectors

III.

Do you (esp. promoter(s) of new entity) have a prior experience in manufacturing business of at least 3 years for loan requirement of upto ₹5 Crores?

Do you have a prior experience in business of at least 5 years for loan requirement above ₹5 Crores?

If your answers to the questions above are an emphatic YES, you are all set to avail loan under STHAPAN!

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

I. Latest details around STHAPAN Scheme don’t seem to be available in the public domain

II. However, as of March 31, 2022, SIDBI sanctioned loans worth ₹2,852 Crores to 1,871 MSMEs (out of which, ₹1,853 Crores had been disbursed) under the two new direct finance products it launched during 2021-22 i.e. STHAPAN & ARISE as a part of SLF-3

So, now, how should you go about it?

I. For submitting application: