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SIDBI’s End to End Energy Efficiency (4E) Scheme

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Status: Active

Classification: Central Government Schemes

Release Date(s):
26th March 2024

Offering: Loan/Credit

Entity Type: Development Financial Institution

Reading Time: 6 Mins

Ticket Size: ₹10 Lakhs to ₹3 Crores

Entity Name: Small Industries Development Bank of India

#Views: 27

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…

End to End Energy Efficiency (4E) Scheme, a sustainable finance scheme, was launched by Small Industries Developmental Bank of India (SIDBI) on 5 June 2014 as an intervention on World Environment Day to combat climate change and upscale interventions in the area of sustainable development. The objective of this Scheme is to meet financial needs of MSMEs for implementing Energy Efficiency (EE) measures on an end to end basis.

Under this Scheme, MSMEs may also be assisted with technical solutions, including walk-through audit, detailed energy audit, bankable Detailed Project Report (DPR formulation), implementation support, and advisory services. For more information on this, please contact SIDBI via means mentioned below.

 

How is it being implemented?

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

 

What’s on offer?

I. Product

  • Term Loan
  • Ticket Size: ₹10 Lakhs to ₹3 Crores (This has increased from ₹1.5 Crores in the past)

 

II. Purpose:

  • Capital expenditure including for purchase of equipment/ machinery, installation, civil works, commissioning, etc. for implementing the Energy Efficiency measures as recommended in the DPR
  • Any other related expenditure required, provided it is not more than 50% of above
  • Financing of second hand machinery/equipment; purchase of land and construction of building (except minor civil works) shall not be taken up under the Scheme

 

III. Borrower Type:

  • Individual, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Company, Society, Trust, Association of Persons and any other legal entity as may be considered by SIDBI from time to time

 

IV. Security or Collateral or Guarantee or Insurance

  • Security: First charge over assets created out of the loan disbursed under the Scheme
  • Collateral: 20% 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

  • Likely to be 0.5%
  • For more information around this, please contact SIDBI via means mentioned below

 

VII. Margin Money Requirement

  • NIL if 100% of the Project Cosr is financed (as 20% security in the form of Fixed Deposit is required to be given as suggested above)
  • For all other cases, 10% promoter contribution would be required

 

VIII. Tenure, Repayments & Pre-Closures

  • Tenure: upto 60 months (including a moratorium of 6 months)
    • For loans upto ₹50 Lakhs, tenure shall not be more than 36 months (including a moratorium of 6 months)
    • For loans above ₹50 Lakhs, tenure shall not be more than 60 months (including a moratorium of 6 months)
  • For more information around repayments, pre-closures etc., please contact SIDBI via the means mentioned below

 

IX. Turnaround Time

  • Quick sanction & disbursement can be expected for this Scheme on account of seamless loan application journey, automated loan processing and immedite in-principle offer
  • For more information around this, please contact SIDBI via the means mentioned below

 

Interested? Read ahead to check your eligibility….

I. Are you are an existing Micro-enterprise, Small-enterprise, or a Medium-enterprise as per MSMED act of 2006 (including Export Oriented Enterprises) operating in manufacturing or services sector?

 

II. Has your business been in operation for atleast 1 year?

 

III. Your business has never defaulted with any Bank(s) or Financial Institution(s)?

 

IV. Will the required Capital Expenditure/ Project Cost envisaged to be incurred help your business tranit to cleaner fuel?

 

V. Will your business be able to establish energy efficiency / Greenhouse Gas (GHG) emission reduction?

 

VI. Does your business comply with SIDBI’s Environment & Social Management Framework?

 

VII. Has your business undergone the process of Detailed Energy Audit (DEA) through a technical agency / consultant having BEE certified Energy Auditors?

 

If your answers to the questions above are an emphatic YES, you are all set to avail loan under SIDBI’s End to End Energy Efficiency (4E) Scheme!

 

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

I. Details of progress under this Scheme do not seem to be available in the public domain

 

So, now, how should you go about it?

I. For submitting application, register and apply online on the SIDBI website here

 

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 the Scheme 1

2. About the Scheme 2

3. About the Scheme 3

4. About the Scheme 4

5. About Launch of SIDBI’s 4E Scheme

6. About Launch of SIDBI’s 4E Solutions

7. Latest News on the Scheme: SIDBI takes measures to facilitate greening of MSMEs

8. SIDBI Annual Report 2022-23

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