The objective of the Scheme
The
objective of the SIDBI’s Term Loan to Enhance Production of MSMEs (STEP) Scheme
is to support new & existing MSME units to provide medium/short term
financial assistance for augmenting NWC and/or to execute urgent confirmed
orders.
STEP Scheme
also aims to provide Incremental working capital requirements for MSME after
satisfying about nonenhancement of regular WC limits from existing lenders.
Key Features of the STEP Scheme
The key
feature of the SIDBI’s Term Loan to Enhance Production of MSMEs (STEP) Scheme
is as follows:
- It is
one of the quick delivery products of SIDBI; a loan under the scheme will
sanction within 2 days.
- SIDBI
provides up to 100% finance for existing and new Ministry of Micro, Small,
and Medium Enterprises
- Under
this step scheme, enterprises will get funding for augmenting NWC and/or
to execute urgent confirmed orders.
- To
avail of the loan under the scheme, the borrower does not need to pay any
processing fee.
- Another
important feature of the scheme is that the borrower can avail of
the Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) cover
- Simplified
documentation is the feature of SIDBI’s STEP scheme.
Eligible Enterprises
SIDBI offers
term loans to Micro, Small, and Medium Enterprises under the SIDBI’s Term Loan
to Enhance Production of MSMEs (STEP).
Eligibility Criteria
The
eligibility criteria for availing of the loan under the SIDBI’s Term Loan to
Enhance Production of MSMEs (STEP) Scheme are as follows:
- Existing
MSMEs as per the Micro, Small and Medium Enterprises Development Act, 2006
only can apply for the scheme
- To avail
of the financial under the STEP Scheme, the MSME unit should have a
minimum of 3 years of operations and 2 years for Existing customers of
SIDBI
- Working Capital Term Loan
shall be provided to only those enterprises not availing Western
Coalfields Limited (WCL) / Overdraft account facility from any
Banks / financial institution.
- The
Micro enterprises should be Operating profit during the past 2 years and 1
year for Existing Customers of SIDBI
- The
Micro enterprises should not have any default/delinquency to any
bank /Financial Institution
- Standard
Scheme Norms will apply such as CIBIL / CMR, due diligence checks, etc.
Quantum of Assistance
The Quantum
of Assistance under the SIDBI’s Term Loan to Enhance Production of MSMEs (STEP)
Scheme is as follows
- Upto
Rs 300 lakh for existing SIDBI customers
- Upto
Rs 200 lakh for New Customers
Interest Rate
The
interest rate for the loan under the SIDBI’s Term Loan to Enhance Production of
MSMEs (STEP) Schemes marginal cost of funds based lending rate (MCLR) based
Return on investment as per internal rating.
Repayment Period
SIDBI
offers a repayment period of up to 3 years including a moratorium of upto 6
months under the SIDBI’s Term Loan to Enhance Production of MSMEs (STEP)
Schemes.
Documentation for STEP Scheme
SIDBI
offers a simple one-page application and built-in checklist for SIDBI’s Term
Loan to Enhance Production of MSMEs (STEP) Schemes. The Standard KYC checks and
due diligence are also available for the STEP SChemes.