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22 Aug 2023

SIDBI-Loan for Purchase of equipment for enterprise's Development Plus (SPEED PLUS)

Odjectives

MSME units with at least 5 years operations with stable sales and cash profits in immediate past 3 years
Minimum net sales of Rs.5 crore and no operating loss in immediate past two years


Eligibility Criteria

The eligibility criteria for availing the loan under the SIDBI Speed plus Scheme are listed as follows:

  • To avail the loan, the MSME units should have at least five years of operations with stable sales and cash profits in immediate past 3 years
  • The MSME should have minimum net sales of 5 crores and no operating loss in immediate past two years

Eligible Expenditure

The eligible expenditure for getting the SIDBI Speed plus Scheme loan is explained in detail below:

  • Machinery purchased from identified Original equipment manufacturer (OEM) manufacturing high-end machines or authorized dealers, Indian subsidiaries of such foreign OEMs, which have the strong brand reputation and with whom SIDBI has entered into an MoU
  • Proposed machinery should relate to the same line of business
  • Second hand or refurbished machines are not eligible

Quantum of Assistance

  • Under the SIDBI Speed plus Scheme, Up to 100% of the machinery cost subject to a maximum of 2 crores is provided for New SIDBI customers (based on 20% – 30% FD)
  • Under the SIDBI Speed plus Scheme, up to 3 crores are provided for existing customers of SIDBI (based on 15% – 30% FD)

Interest Rate

The interest rate for the loan under the SIDBI Speed plus Scheme is 8.80% to 10.50% per annum.

Tenure details

The tenure for SIDBI Speed plus Scheme loan is 2 to 5 years including moratorium of 3 to 6 months

Documents Required

The documents required for SIDBI Speed plus Scheme is explained in detail below:

  • Proforma Invoice of the Machinery (quotation)
  • KYC documents (as per Bank’s guidelines)
  • Past three years audited financial statements
  • In case the application is lodged between April-October, CA certified provisional B/s for previous FY
  • Statement of immovable properties of promoter/directors
  • Copy of MoA/Partnership deed/Trust Deed
  • Copy of consent to establish from PCB
  • Document showing Existing Power load
  • Application filed for additional power load required
  • Copy of rent/lease agreement
  • Details of Loans taken from other banks/FIs/NBFCs which are currently outstanding
  • Copy of Udyog Aadhar Memorandum (UAM)
  • Copy of GST Registration Certificate (for GST registered units)
  • Copy of sanction letters of other lenders for existing banking arrangement
  • Proof of Identity document
  • Proof of Address document