46 XX | Enlightener Series | B. Central Government Schemes | B.13 Ubharte Sitaare Programme (Part I)

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…

Ubharte Sitaare Programme (USP) was launched in 2020 after the initiative was announced by the Hon’ble Finance Minister in the Budget Speech on February 01, 2020 with the aim of providing financial & technical assistance to Indian companies that are future champions with good export potential. It is a joint initiative by Small Industries Development Bank of India (SIDBI) and Export-Import Bank of India (EXIM Bank).

The financial assistance is given in the form of equity, equity-like instruments, and debt (funded / non- funded).

The technical assistance is given in the form of advisory services for product adaptation and improvement, cost of certifications, training expenses, market development activities including overseas travel for product/market development, studies relating to sectors, markets, regulations, Techno Economic Viability (TEV) study, etc. For more information on this, please reach out to EXIM Bank via means mentioned below.

In this article, we will be primarily be covering the Debt offering of the Programme.

How is it being implemented?

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

Existing Small or Medium sized Export Oriented Enterprises
Existing Small or Medium sized Enterprises that have a strategic market entry plan for international markets
New Small or Medium sized Enterprises where Promoters having sufficient experience in the proposed line of business and major projected revenue from exports
New Small or Medium sized Enterprises co-funded by technocrats from premier institutions (like IIT, IIM, IISc, NIT etc.)

What’s on offer?

I. Product

Term loan (TL), Foreign Currency Term Loan (FCTL)
Ticket size: upto 80% of the project cost subject to a maximum of ₹30 Crores. For more details on the maximum loan that can be availed, please contact SIDBI or EXIM Bank via means mentioned below
For more information on non-funded credit facilities, please contact EXIM Bank via means mentioned below

II. Purpose:

Acquisition of/ investment into fixed assets (tangible, intangible)
Working capital requirements

III. Borrower Type:

Sole Proprietorship, Partnership Firm, Limited Liability Partnership (LLP) or a Company
For more information around this, please contact SIDBI or EXIM Bank 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 Programme
Collateral: There may be a change on fixed assets of the enterprise plus charge/assignment on Intellectual Property Rights (IPR) etc. For more information around this, please contact SIDBI or EXIM Bank via means mentioned below
Guarantee: There may be a personal guarantee required. For more information around this, please contact SIDBI or EXIM Bank via means mentioned below
Insurance: For more information around this, please contact SIDBI or EXIM Bank via means mentioned below

V. Processing Fee

For more information around this, please contact SIDBI or EXIM Bank via means mentioned below.

VI. Margin Money Requirement

For exising units, 20%
For new units, 30%

VII. Interest Rate

Based on SIDBI’s and/or EXIM Bank’s Marginal Cost of Funds based Lending Rate (MCLR)
SIDBI’s MCLR w.e.f January 10, 2024 is 8.2%
- Furthermore, you may look for the SIDBI’s prevailing MCLR at any point of time by scrolling here and looking for Interest Rate Structure – Direct Lending Products
EXIM Banks MCLR for February 2024 ranges from 7.30% to 8.25%
There is a further performance / milestone linked interest incentive of upto 25 bps or 0.25%

VIII. Tenure, Repayments & Pre-Closures

Tenure: upto 8 years, extendable upto 10 years
- Repayment of upto 6 years, extendable upto 10 years
- Moratorium of upto 2 years
For information around pre-closures, other terms etc., please contact SIDBI or EXIM Bank via means mentioned below

IX. Turnaround Time

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

Interested? Read ahead to check your eligibility….

Is yours an exisitng Small or Medium sized Export Oriented Enterprise?

Is yours an exisitng Small or Medium sized Enterprise that has a strategic market entry plan for international markets?

Is yours a new Small or Medium sized Enterprise where Promoters having sufficient experience in the proposed line of business and major projected revenue from exports?

Is yours a new Small or Medium sized Enterprise co-funded by technocrats from premier institutions (like IIT, IIM, IISc, NIT etc.)?

II. Is your business operating in high export potential sectors, i.e. Automobiles and Auto components, Aerospace, Capital Goods, Chemicals, Defence, Food Processing, IT & ITeS, Machinery, Pharmaceuticals, Precision Engineering, Textiles and allied sectors etc.?

III. Do you consider your business to be a future export champion with high potential, meaning, does your business have a unique value proposition in technology, products or processes that match global requirements?

IV. Is your business’ annual turnover upto approx. ₹500 Crores?

V. Is yours a fundamentally strong business – with acceptable financials, outward orientation, ability to penetrate global markets, good business model, strong management capabilities, and focus on product quality?

VI. Your business till date has 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 Ubharte Sitaare Programme!

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

I. As of March 31, 2023, EXIM Bank has extended financial support (both fund and non-fund based credit facilities) aggregating ₹ 638 Crores to 42 companies and disbursed ₹ 319 Crores under this Programme

II. Details around quantum of credit facilities extended by SIDBI under this Programme is not available in the public domain

So, now, how should you go about it?

I. For submitting an application,

Visit a SIDBI Branch Office near you

Visit a SIDBI Regional Office near you

Visit a SIDBI Vertical/Zonal In-charge near you

Contact EXIM Bank
- Via Phone on +91-22-22172600 / +91-11-24607700
- Via E-mail on seed@eximbankindia.in

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

III. For further queries, please contact