The objectives of STAR Scheme  

The objective of SIDBI under the SIDBI Term-Loan Assistance for Rooftop Solar PV Plants (STAR) Scheme is to help the MSME sector in reducing their power bill.  

The key features of SIDBI Term-Loan Assistance for Rooftop Solar PV Plants Scheme 

·       SIDBI provides 100% finance under STAR Scheme.

·       There will be zero contribution by the promoters.

·       Simple loan documentation

·       Direct payment to supplier

·       Cover of credit guarantee is available.

·       It can be obtained at an attractive interest rate.

·       FD of 15% to 25% of loan

·       There will be fast disbursal and loans will be sanctioned quickly.

Eligibility criteria for STAR Scheme 

The eligibility criteria for getting a loan under the STAR scheme are as follows: - 

·       Cash profit for the previous 2 financial years.

·       The business vintage for new customers is 4 years and for existing customers it is 2 years.

·       Satisfactory repayment track record.

·       Only On-site projects are funded under this scheme.

·       The maximum loan amounts up to 25% of the NET Sales.

·       Scheduled Solar rooftop capacity should not exceed connected load.

·       The minimum IACR of 0.5% for new customers (if no CGTMSE Cover)

·       Both stand alone and grid connected are covered.

Eligible Units  

·       The MSMEs with a minimum existence of 4 years & cash profit for the previous 2 years can reduce power bill by installing rooftop solar plant with 25 KW to 500 KW capacity under this scheme

Quantum of Assistance of STAR Scheme 

Under the STAR Scheme by SIDBI, it provides the loan amount from Rs. 10 lakhs to Rs. 250 lakhs to the borrowers. 

The interest rate of STAR Scheme 

·       The rate of interest of SIDBI Term-Loan Assistance for Rooftop Solar PV Plants (STAR) scheme is 9.10% to 10.20%.

The loan tenure and Moratorium of STAR Scheme 

The repayment tenure depends on the risk, cash flow of the unit and project implementation schedule. 

Small Industries and Development Bank of India (SIDBI) provides a tenure of up to 5 years with a moratorium period of 3 to 6 months to the eligible units.  

Documents required for the STAR Scheme  

Listed below are the documents required for SIDBI Term-Loan Assistance for Rooftop Solar PV Plants (STAR) Scheme: -   

·       Income Tax Returns of promoters with IT assessment order for previous 3 years.

·       List of proposed and existing stakeholders & holding pattern with the name of stakeholders, etc.

·       KYC Documents (for an individual)

·       KYC proof of mortgagors, guarantors.

·       Proof of address if there is any change in the address of registered factories or office.

·       Previous 3 years of annual accounts of the borrower units.

·       Memorandum of Association of the borrower’s company, copy of registration certificate along with the registration of firms, and partnership deed of the borrower (if registered).

·       Annual accounts of the associate concern, corporations giving the guarantee, group companies.

·       Income Tax Return of guarantors with IT assessment order for the last 3 years.

·       Recent electricity bill and power sanction letter of existing units.

·       AOA and MOA of corporations giving a guarantee.

·       Duly filled out electronic application form and profitability projections.

·       Copy of approved building plan.

·       Estimation of architects for civil works.

·       Multiple banking arrangements – Annexure

·       Quotations for miscellaneous fixed assets, plant and equipment, and other project heads, etc.