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…
EXPRESS Scheme was launched by Small Industries Development Bank of India (SIDBI) with the primary objective of providing expeditious sanction of machinery loan through its automated platform using GST returns, ITRs, Bank Statement and CIBIL score to New to SIDBI MSMEs. This scheme is also referred to as EXPRESS 2.0.
How is it being implemented?
Under EXPRESS Scheme, direct financial assistance in the form of loans is given to New to SIDBI:
- MSMEs operating in manufacturing or services sector
What’s on offer?
I. Product
-
Term loan
-
Ticket size: upto ₹ 1 Crore
II. Purpose:
- Purchase of machinery or equipment
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
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Security: First charge over assets created out of the loan disbursed under the Scheme
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Collateral: 25% security in the form of Fixed Deposit. For more information around this, please contact SIDBI via means mentioned below
-
Guarantee: Nil
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Insurance: For more information around this, please contact SIDBI via means mentioned below
V. Interest Rate
-
Marginal Cost of Funds based Lending Rate (MCLR) linked Return of Investment (ROI)
-
Furthermore, you may look for the prevailing MCLR at any point of time by scrolling here and looking for Interest Rate Structure – Direct Lending Products
VI. Processing Fee
-
0.50% plus applicable GST
VII. Margin Money Requirement
- NIL as upto 100% of cost of machinery or equipment can be financed
VIII. Tenure, Repayments & Pre-Closures
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Tenure: upto 60 months
-
Repayments: Equated Monthly Installments (EMIs)
-
For information around pre-closures, other terms etc., please contact SIDBI via means mentioned below
IX. Turnaround Time
- Immediate receipt of in-principle decision (sanction or rejection) via e-mail given that the process of application, documentation and sanction is fully digital & automated
- Faster disbursement of loan thereafter
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. Your business has not availed any loan from SIDBI in the past?
III. Has your business been operational for atleast the last three years?
IV. Have you filed IT returns for your business for atleast the last three years?
V. Does your business have a valid UDYAM registration?
VI. Does your business have a GST registration?
VII. 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 EXPRESS Scheme!
So…how big is this scheme and what has been done so far?
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 go through the step by step guide here
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
- E-mail: bd.dcv@sidbi.in
OR
- Contact SIDBI Branch Office near you
OR
- Contact SIDBI Regional Office near you
OR
Go on then…and do spread the word!
Sources:
1. About SIDBI EXPRESS Scheme 1
2. About SIDBI EXPRESS Scheme 2
3. About SIDBI EXPRESS Scheme 3: Page 11 of PDF Document
4. About SIDBI EXPRESS Scheme 4: Page 58 of PDF Document
5. SIDBI Annual Report 2022-23
6. Latest news: SIDBI – EXPRESS Scheme- Machinery loans made easy for MSME
